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Legislative Assembly for the ACT: 1997 Week 5 Hansard (15 May) . . Page.. 1574 ..

MRS CARNELL - The answer to the Member's question is as follows:

(1) Businesses which receive funding through the Business Incentive Scheme are required to sign an assistance agreement with the ACT Government. The agreements are of a standard format and require certain obligations of the funded business, a summary of which follows.

A company must provide reports to the Territory, at six monthly intervals, for the length of the agreement, which must contain details of how the funds were spent, the number of employees engaged and other achievements of the funded project. The first of these reports must be provided six months after the execution of the agreement.

A company must also provide a copy of its next two financial statements by 31 August each year. The assistance must be clearly identifiable. If these are not audited financial statements, the Company must provide an acquittal statement prepared by a certified practising accountant or a chartered accountant, confirming that the assistance has been used in accordance with this Agreement.

If the company is in breach of any provision of the agreement the company shall, upon written notice of demand by the Territory, repay the assistance, or such part of the assistance as a notice of demand may specify.

There are some minor variations to individual agreements which are additional compliance obligations.

(2) As explained in my answer to question (l), each business that accepts assistance, must sign an agreement with the Territory. Compliance with the obligations undertaken by each business is monitored through the requirement to submit six monthly reports for the term of the agreement. Failure to do so can result in a demand to repay the assistance. The reports are a monitoring device to ensure that businesses meet the objective of the Scheme which is to expand and develop Canberra's business base.

These reports do not require compliance with all of the eligibility criteria as detailed by Mr Corbell. These criteria are for assessment purposes, which once met, are always met.

Importantly, however, each business must report on the level of employment generated and the progress of the funded project. Such reports would generally highlight turnover, sales and major investments including investment in new technologies.

The exception to date is Sustainable Technologies which has specific employment targets as a best endeavours obligation under the agreement.

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