$700m target for Aboriginal businesses

The state government is aiming to award about five per cent of all contracts in the transport sector to Aboriginal businesses over the next five years.

Transport minister Rita Saffioti told a procurement forum today the government anticipated awarding $700 million of contracts to Aboriginal businesses over this period.

She said this equated to around five per cent of all direct contracts.

The government is also aiming for 3.5 million hours to be completed by Aboriginal workers over the five-year period.

The targets will apply from now until June 2026 to projects delivered by the Department of Transport, Main Roads Western Australia and the Public Transport Authority of WA, including Metronet projects.

The new transport target represents an increase on past achievements.

In the past financial year, about $80 million worth of services were undertaken by Aboriginal businesses on Main Roads and Metronet projects.

These include the Broome Cape Leveque road upgrades and the interior fit-out of the Bellevue railcar facility.

To qualify under the scheme, businesses need to be at least 50 per cent owned by Aboriginal interests.

Ms Saffioti said the transport targets were complementary to Aboriginal procurement targets set by the Department of Finance for all government agencies.

The Finance target is currently for three per cent of all contracts (by number) to be awarded to Aboriginal businesses.

Under this policy, the government has averaged about 200 contracts worth $170 million per year.

The minister said there was no shortage of opportunities for Aboriginal businesses and people to get involved.

“We see these targets continuing the momentum across the portfolio to review procurement and employment processes that give Aboriginal people the best chance possible to participate,” she said.

“This will help build Aboriginal people’s capacity by ensuring a pipeline of projects to give everyone certainty of work.”