Next page . . . . Previous page . . . . Speeches . . . . Contents . . . . Debates(HTML) . . . .

Legislative Assembly for the ACT: 1997 Week 7 Hansard (24 June) . . Page.. 2030 ..

MR CORBELL (continuing):

Another concern is the process by which the department oversees the operation of the scheme and how they monitor the performance of businesses. In responses the Labor Opposition received from the Government on how they monitor the operation of the business incentive scheme, we found that they did not have in place a formalised process of checking on the progress of businesses receiving assistance under the scheme once they had received the assistance. I do not have the exact dates with me, unfortunately, but it would seem that about six months after the implementation of the business incentive scheme the Government suddenly realised that perhaps they needed a more formalised monitoring process to check up on the businesses receiving assistance.

This shows how dangerous going into business incentive schemes and providing financial assistance and land grants to businesses can be. You provide businesses with taxpayers' dollars, you attract them here with offers of grants of land and payroll tax concessions, holidays, or whatever the case may be; but then you do not monitor their performance. You have no formal process for monitoring their performance. There was no requirement for formal report back from the businesses. There was none of that. There was just meant to be an ongoing phone call arrangement. I think it is inadequate to provide tens of thousands of taxpayers' dollars and tens of thousands of dollars worth of land owned by the Territory to businesses without having any monitoring process. Again, that is a very legitimate criticism we have of the operation of the business incentive scheme in the ACT.

I move to some other areas of the business portfolio. The first is the very high speed train project. We were advised in the Estimates Committee that the ACT Government had actually checked with the people who prepared the KPMG report on the very fast train in 1991 to make sure that the advice provided in that report was still relevant. What was interesting about that request was that it came about two months after the Labor Opposition had moved for, and gained the support of this Assembly to have, an inquiry into what the economic impact of a very high speed train would be on the ACT economy.

Only two months later - they were not slow off the mark, were they? - they decided, "Oh gee, we had better check to make sure that the report we are relying on is still accurate". Of course, the answer they got back from the consultants was, "Yeah, we think the parameters are still okay". But I think that only endorses the approach that Labor has taken on this issue by being proactive and recognising that we need to investigate what the economic impact will be for the ACT and how we can best capitalise on it, how we can best maximise benefits for all in our community and how we can make sure we avoid any of the pitfalls that that development may bring about.

I was pleased to hear recently that the ACT Government is now preparing a response and will actually be making a submission to the Standing Committee on Economic Development and Tourism inquiry into the very high speed train. That is to be welcomed, but again it demonstrates that the Government has not really been thinking through these issues. At first they said, "No, we will not respond. No, we refuse to do that. It is inappropriate. We would be disclosing commercial-in-confidence information". I heard only this week that now they are quite willing to make a submission. That only vindicates Labor's approach.

Next page . . . . Previous page . . . . Speeches . . . . Contents . . . . Debates(HTML) . . . .