JOBS BOOST UNDER STRONG LOCAL CONTENT REQUIREMENTS

JOBS BOOST UNDER STRONG LOCAL CONTENT REQUIREMENTS

Posted on 16. Sep, 2010 in Victoria

More than 5500 Victorian jobs were created and 22,500 secured last financial year under strong Brumby Labor Government requirements for major projects to feature content from Victorian companies.

Industry and Trade Minister Jacinta Allan today welcomed a report showing that 2009/10 had been the Government’s most successful year yet for creating new jobs through its Victorian Industry Participation Policy (VIPP).

“We are helping local manufacturers rise to the challenge of global competition by giving them a leg-up to securing job-creating contracts in major Victorian Government projects,” Ms Allan said.

“The VIPP Annual Report shows that last financial year our policy helped create more than 5500 new jobs and secure more than 22,500 existing jobs by requiring major projects to source local content.

“Last financial year, the policy applied to 1908 contracts worth almost $12 billion in total.

“The results follow changes to strengthen the requirements which came into effect from 1 July 2009.”

Ms Allan said the new requirements meant contracts worth more than $3 million in Melbourne, and $1 million in regional Victoria, were now included in the VIPP.

“The strengthened VIPP requirements have helped drive a massive 494 per cent increase in the number of contracts where the VIPP was applied,” she said.

“It has also boosted the overall local content of projects to more than 87 per cent and has delivered almost 1000 more new jobs compared to the previous year.”

The 2009-10 VIPP Annual Report also highlighted that the VIPP has helped to attract and retain apprentices and trainees.

“VIPP projects led to the creation of 434 new apprenticeships and traineeships, as well as the retention of 700 existing apprentices trainees,” Ms Allan said.

“Creating and retaining a skilled workforce are crucial to future of Victoria’s manufacturing sector, and this is an example of how strong industry policy is not only creating jobs, but building a workforce for the future.

Ms Allan said Strategic Projects framework under VIPP gave Victorian businesses an even weigh-in on projects worth more than $250 million, such as the Victorian Comprehensive Cancer Centre.

The VIPP was introduced by the Victorian Government in 2001 to give local companies greater opportunities to be involved in government purchasing and major projects. Since then, the VIPP has created more than 32,000 new jobs across Victoria and has been applied to 3313 projects worth almost $39.4 billion in total.

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