In relation to the ACT Business Incentive Scheme, and specifically to the Australian Optic Fibre Research Pty Ltd, bought by the US telecommunications company, ADC and now trading under that name and your government's offer in 1995 of $1.5 million, consisting of a $300,000 cash grant, $400,000 waiver on payroll tax and a gift of land worth $800,000: which was made on the expectation that the company would treble its workforce of 1-30 by "the turn of the century" The Canberra Times 9/10/1995:

1 What was the actual employment growth in the business since the arrangement was made.

2. If employment growth is not satisfactory, what steps will the Government be taking to recoup the investment.

3 What research has been done with the business decision makers, both those who have located in Canberra and those who have not, as to the impact and significance of Government incentive schemes when making decisions as to location and investment.

AOFR Pty Ltd, a subsidiary company of ADC, is an international manufacturer and supplier of fibre optic technology. AOFR is the dominant fibre optic connector producer in the world today exporting some 85% of its production.

The company's product is incorporated into major broadband communications equipment supplied to the transport and telecommunications markets worldwide.

1. AOFR employed 125 full time staff when the Agreement was signed in 1995. Without creating any binding obligations on the part of the company, AOFR formally agreed that it would use its best endeavours to employ 350 full-time staff by the end of 2000. As at 31 December 1999, AOFR employed 245 full-time staff.

2. AOFR is currently expanding the size of its existing facility that will result in a significant increase in both its output and employment. This additional capacity is likely to lift AOFR's employment to, or indeed above, the levels envisaged in the ACTBIS Agreement by the end of this year.

3. There has not been any formal research conducted by the ACT Government with business decision-makers as to the impact and significance of government incentive schemes. Anecdotal evidence would suggest that business decision-makers do consider incentives offered by various governments very favourably when making their decisions.