The Australian Steel Institute (ASI) welcomes the passing of the Victorian Government’s Victorian Industry Participation Policy (Local Jobs First) Amendment Bill.
The Bill mandates minimum local content on major projects, including a 90% minimum on construction projects. This will create more jobs for Victorians and support local industry.
Created in response to the Premier’s Job Summit in 2017, the Bill also establishes the Local Jobs First Commissioner, who will advocate for businesses and workers, so they get a greater share of government projects. The Commissioner will also oversee compliance of local content and workforce commitments.
ASI Chief Executive Tony Dixon, said, “The Victorian Industry Participation Policy is a sound piece of legislation that has worked well and supported industry for over a decade. However, the Local Jobs First Amendment will further strengthen the policy, and provide more confidence in the market. It will give the program more ‘teeth’ and ensure that is promised will be delivered.”
“We congratulate the Victorian Government on enshrining the Victorian Industry Participation Policy into law. The Government has been supportive of the local Australian steel industry across many of their major projects in recent years, for which the ASI and its members are grateful.”
“We look forward to working with the Government and the new Jobs Commissioner to ensure that local jobs and local steel content is maximised in all projects going forward. Using Australian steel pays huge dividends for entire Australian economy—steel has an usual multiplier effect, creating as many as six full-time jobs in related industries for every person employed directly by the steel industry.”
“In addition, an independent report by the Industry Capability Network concluded that every $1 million worth of output in the Australian steel industry generates over $700,000 worth of Gross Value Added in industrial support activities and $225,300 in tax revenue,” said Dixon.
The Victorian Government has already set local content requirements for 88 strategic projects – worth $55 billion – including level crossing removals and the Metro Tunnel. With such a large infrastructure program, the opportunities for local businesses and workers from government procurement have never been better.
Source: Australian Steel Institute