A significant portion of every dollar spent by the Cairns Regional Council is being reinvested into the local economy, according to the latest State of Procurement Report. For the 2025/26 financial year, an impressive 91 percent of the council’s total expenditure remained within the Cairns region, translating to $539 million directed to local suppliers. This substantial local investment generated an estimated economic impact of $1.2 billion across the region, underscoring the power of prioritizing local businesses in municipal spending.
Cairns Regional Council’s Commitment to Local Economy
Cairns Mayor Amy Eden highlighted the report’s findings as a direct reflection of the council’s dedication to fostering local enterprise and economic growth. “Supporting local business is a fundamental principle of Council’s procurement policy and a key part of our approach to economic development,” Mayor Eden stated. “By prioritizing local suppliers wherever possible, we’re helping to keep more investment in our region and strengthening Cairns’ economic resilience.”
The report details that out of the council’s total expenditure of $595 million during the 2025/26 period, $539 million was allocated to businesses within Cairns. The remaining expenditure, which constituted 9 percent of the total, was primarily for specialized products and services, or government-related charges where no local alternative was available. This strategic allocation of funds is designed to build a more robust and self-sufficient regional economy.
Economic Impact and Job Creation
The council’s commitment to local procurement has a tangible effect on employment and economic value within Cairns. The $539 million spent with local suppliers is estimated to have supported approximately 4,836 jobs. Furthermore, this local spending generated $536 million in direct economic value, representing a significant 4.2 percent of the Gross Regional Product (GRP) for Cairns. This demonstrates how council spending acts as a vital catalyst for regional economic activity.
Breakdown of Job Support
The report further breaks down how council spending contributes to employment across different sectors:
- Operational Spending: The council’s day-to-day operational expenditures directly supported an estimated 2,437 jobs. This includes spending on services, supplies, and utilities necessary for the council’s functions.
- Capital Works Program: The significant $292 million investment in the capital works program was a major driver of employment, generating an estimated 2,399 jobs. This figure accounts for direct employment on construction projects, indirect employment in supply chains, and consumption impacts from workers spending their wages in the local economy.
Year-on-Year Improvement in Local Procurement
The State of Procurement Report also highlights a positive trend of increasing local expenditure and a higher procurement rate over successive financial years. In the 2024/25 financial year, local expenditure stood at $463 million, with a local procurement rate of 89 percent. This improved to $539 million and 91 percent in 2025/26, indicating a consistent and growing focus on sourcing goods and services locally.
Mayor Eden expressed pride in this upward trajectory, particularly in the face of broader economic uncertainties. “This result is something our local business community can be proud of,” she remarked. “Despite ongoing economic challenges nationally, Council is continuing to invest in local companies, local workers and local industry capability.”
Strengthening Economic Resilience
The sustained emphasis on local procurement is a deliberate strategy to enhance Cairns’ economic resilience. By ensuring that a larger proportion of council spending circulates within the region, the council aims to create a more stable and robust economic environment. This approach not only supports existing businesses but also encourages the development of new local industries and capabilities, making the region less susceptible to external economic shocks.
The benefits extend beyond direct financial contributions. Supporting local businesses often means supporting local families, fostering community connections, and encouraging a sense of shared prosperity. The council’s procurement policy, therefore, serves a dual purpose: achieving efficient service delivery while actively contributing to the social and economic well-being of the Cairns community. The outcome, as demonstrated by the $1.2 billion economic impact, is a stronger, more resilient economy that benefits everyone in Cairns.
