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Legislative Assembly for the ACT: 1997 Week 5 Hansard (15 May) . . Page.. 1579 ..

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

(1) The Industry Assistance Program was established by the Follett Labor Government in late 1993.

My understanding of the Industry Assistance Program, is that to be eligible for funding, all of the businesses listed in the question were assessed on the level and type of employment generated; their contributions to export and/or import replacement; the level of new skills or technology introduced; whether there was undue detriment to existing businesses; and the level of demonstrable multiplier effects on the ACT economy.

Without meeting the majority or all of these criteria, an applicant would not be considered for funding.

Following approval, an agreement is negotiated with each business. The agreements typically oblige each applicant to submit six monthly reports on the progress of the project, including employment generated. The number of reports required varies from agreement to agreement depending on the termination date. Not to submit a report would be a breach of contract, which could result in the Territory terminating the contract and seeking repayment of all or part of the assistance provided.

(2) As explained in my answer to question (1), each business that accepted assistance under the Industry Assistance Program, was required to enter into a formal agreement with the Territory, which set out the activity to be undertaken by the business and the conditions under which the Territory provided the assistance. The agreements usually specified an obligation by the business to provide reports to the Territory at specified intervals.

Compliance with the obligations undertaken by each business is monitored through this requirement. Failure to provide a report can result in a demand to repay the assistance. The reports were, and still are a monitoring device to ensure that businesses met the aims of the program which were to expand and develop Canberra's business base, by supporting existing businesses to undertake new investment and employment.

These reports do not seek compliance with each of the criteria as listed by Mr Corbell, but seek to ensure that the Program has been and is successful in generating employment opportunities.

Of the businesses listed only two, AOFR/ADC and Auspace Ltd have specific employment targets as a best endeavours obligation under the agreement.

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