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Policy initiatives to support economic development

7 Assets and Liabilities in Tasmania and the Target LGAs

7.1 Constructed Assets

7.1.5 Policy initiatives to support economic development

Both the State and Commonwealth governments provide programs to support economic development. Programs of potential relevance to the target LGAs are summarized in, which also provides an estimate of the relevance of each program. A low ranking is given when there are few businesses or individuals that are likely to benefit from the program. For example, R&D tax concessions are given a low ranking because few businesses in the target LGAs perform formal R&D. A high ranking indicates that the program is relevant both to many businesses or individuals in the target LGAs. A moderate ranking indicates that some businesses or individuals could benefit, either at this time or possibly in the future, but the amount of support available is limited.

The State programs target specific, identified problems, such as a lack of skills, marketing capabilities, and capital for entrepreneurs or for farmers to invest in irrigation. The national programmes are often broader and scope and fall into five schemes: support for innovation and businesses, employment and skill development, the digital economy, clean energy, and a miscellaneous category. In addition, two initiatives are of particular relevance to Tasmania:

carbon farming and the TFIGA.

Most of the programs provide grants or subsidies, either to businesses, service providers, or community groups. Very few, if any, follow the TI Board model of a goal-oriented public-private initiative for economic development.

Table 7.2 State and national initiatives for economic development Fund/program

A targeted grant program that will combine mentoring and investment facilitation services and cater for matching funds from participating businesses. Priority will be given to businesses in communities vulnerable to external shocks and industry restructuring.

Managed by Skills Tasmania in collaboration with DEDTA.

This Initiative is designed for Job Services Australia and other support providers, and participants (jobseekers or partners of newly retrenched workers in North-west and Northern Tasmania). Total: $500,000, up to $2,500 per person.

Enable communities and industries to adapt to the opportunities and risks from climate change.

Moderate

Forest contractors support program

Total of $1.8 million available to contractors who are primarily reliant on contracts for hardwood pulpwood.

High: Not announced yet

DEDTA Export Assists Tasmanian enterprises in planning and Moderate

153

$3 million supporting organisations with community developments as their mission.

High

Micro businesses loan program

$1 million financial assistance to individuals establishing entrepreneurial businesses.

Moderate

Renewable energy loan scheme

$30 million assist eligible businesses to purchase and install renewable energy generation facilities or manufacture renewable energy technology.

Moderate

Tasmanian Community Fund

Grants to communities and organisations that improve social, environmental and economic wellbeing of the community (commenced in 1999).

High

Farm water

development loans

Short-term financial assistance to farming enterprises for irrigation infrastructure and on farm water storage

High

Tasmanian Innovation and Investment Fund

$8 million over three years to give innovative businesses an opportunity to generate new jobs while broadening the Tasmanian economy and strengthening its employment base.

High

National programs to support innovation and businesses Regional

Development Australia Fund and RDA Tasmania

Around $1 billion nationally to support investment and infrastructure for regional development.

High

Regional

Infrastructure Fund

$6 billion over 11 years for infrastructure projects in areas supporting the mining industry.

High

New Enterprise Incentive Scheme

Provides accredited small business training, business advice and mentoring for eligible job seekers, as well as ongoing income support for up to 52 weeks

High

R&D Tax concession Enables companies to claim their R&D costs at a concessional rate of 125%

Low

Small Business Advisory Services program

$27.5 million over four years aimed at helping small businesses with low-cost planning, advice and assistance with applications for finance.

High

Tradex Scheme Upfront exemption for customs duty and GST on eligible imported goods or components intended for export.

Low

Export Market Development Grants Scheme

A non-discretionary scheme which encourages small and medium-sized businesses to advance into export markets.

High

Enterprise Connect A national network of 12 Centres that assists firms with skills development to improve their competitiveness and productivity.

High

Small Business Support Line

Assists small business owners with access to information and referral services.

High

154

Subsidy of $102 million to reduce freight costs between Tasmania and Mainland Australia as well as mainland Tasmania and King Island and the Furneaux Group.

High

Tasmanian Rail $193.6 million from 2008-09 to 2013-14 for upgrades to the Tasmanian freight rail network.

Moderate

Regional Aviation Access Program

$24.6 million program provides subsidised passenger and freight services and infrastructure upgrades.

Moderate

TQUAL Grants Scheme

$40 million over four years to stimulate sustainable economic growth in the Australian tourism industry by enhancing the supply of quality tourism products and experiences to support marketing promises.

$35 million over 4 years for matched funding grants aimed to boost the productivity and competitiveness of

Australia’s regional food and seafood industries through innovation and technology improvements.

Build the capacity and opportunities of Australia’s researchers, entrepreneurs and innovative firms to convert their intellectual property into successful commercial ventures.

Low

Enhanced Project By-Law Scheme

Avenue for duty concessions in certain circumstances for imported eligible goods for approved projects in exchange for participation of Australian industry in supporting goods and services.

$61.5 million from 2011 to 2014 to assist regional universities to develop research capabilities and collaborate with other academic institutions.

Low

National programs to support employment and skills Educational

Investment Fund

$500 million over 5 years allocated to a regional priority round to help regional higher education and vocational institutions improve their infrastructure and help improve the quality of training and education regional students receive.

High

Australian Apprenticeship Centres

Deliver services to Australian apprentices and employers. High

Disability employment services

Specialist role in assisting people with disabilities, injuries, or health conditions to secure and maintain sustainable employment.

High

Indigenous employment

Supports a broad range of activities that are responsive to the needs of employers. Indigenous Australians and their

Unknown

155

program communities to help place Indigenous Australians into work.

Remote Jobs and Communities Program

$1.5 billion over five years to provide flexible approach to employment and community services in remote areas.

Moderate

Community Based Employment Advice Services

$7.1 million coordination of not-for-profit organisations with their clients in regional areas.

Low

Language Literacy and Numeracy Program

Provides language, literacy and numeracy training for clients whose skills are below the level considered necessary to secure sustainable employment or pursue further education and training.

Moderate

Workplace English Language and Literacy Program

Assist organisations to train workers in English language, literacy and numeracy skills in conjunction with relevant vocational skills.

Low

National Green Jobs Corp

26 week environmental training program to assist 17-24 year olds to prepare for employment in emerging green and climate change industries.

Moderate

National Workforce Development Fund

$558 million over four years to industry to support training and workforce development in areas of current and future skills need.

High

Other national programs Health and

hospitals fund

$5 billion to invest in major health infrastructure programs that will make significant progress towards achieving the Commonwealth’s health reform targets; and to make strategic investments in the health system that will underpin major improvements in efficiency, access or outcomes of health care.

$1 billion to provide support for people with disabilities. Moderate

Living Longer. Living Better

$3.7 billion over five years to improve to improve aged care services while recognising regional needs.

High

Volunteer Grants Grants of between $1,000 and $5,000 for organisations to purchase small equipment items to assist volunteers and contribute towards reimbursement of fuel costs, transport costs incurred by volunteers with disability who are unable to drive, training courses and background screening checks for volunteers.

Moderate

Biosecurity $524.2 to strengthen Australia’s biosecurity system. High

156 innovative digital enablement projects with state and local government. Collaborative approach to improve delivery of education, health and/or emergency services in regional, rural and remote communities.

High: Statewide

Digital hubs program

$13.6 million over 3 years to help communities gain skills needed to maximise benefits provided by the NBN, will establish a digital hub in the 40 communities to first benefit from NBN.

$10 million over 3 years to assist small businesses and not-for-profit organisations in communities to first benefit from the NBN

$17.1 million funding to local governments in communities that first benefit from the NBN

As above

NBN enabled education and skills service program

$27.2 million over four years to demonstrate the benefits of high-speed broadband.

High

Indigenous communities

$31 million to help improve communication services in remote indigenous communities.

Low

Clever networks $18.6 million (ceased 30 June 2011), enabled roll out of broadband infrastructure and services to regional, rural and remote areas.

High

ICT centre for excellence

National ICT Australia (NICTA), research, research training and commercialisation institute. Substantially funded by the federal government. $185.5 million added to extend the centre for a further 4 years.

Low

Clean energy (National), Environment and Sustainability Jobs and

competitiveness program

$9.2 billion to provide assistance to the most emissions intensive and trade exposed industries in the Australian economy.

Moderate

Clean technology investment program

$800 million to provide grants to manufacturers to support investments in energy efficient capital equipment and clean technologies, processes and products.

Moderate

Clean technology food and foundry program

$200 million to assist the food processing and metal forging and foundry industries.

High

Clean technology $200 million of funding over 5 years to support business Moderate

157

innovation fund R&D in renewable energy, low pollution technology and energy efficiency.

Energy efficiency information grants

$40 million over 4 years to help small business understand the implications of the Clean Energy Plan.

Moderate

Clean technology focus for supply chains

$5 million over four years for advisory programs that assist business, including Industry Capability Network, Supplier Advocates, and Enterprise Connect.

Moderate

Helping

communities and regions

$200 million to support local communities that have been adversely affected by the introduction of the carbon price.

Moderate

Community energy efficiency program

Extended $200 million program will support energy efficiency upgrades to council and community-use buildings, facilities and lighting.

Moderate

Diversity and Social Cohesion Program

Grants of up to $50,000 to assist eligible not-for-profit organisations to provide projects that help build stronger community relations.

Moderate

Caring for our Country

Funding of $2.2 billion from 2013-14 to 2017-18 for projects that improve biodiversity and promote the adoption of sustainable farm practices in regional Australia.

$29.2 million four year program supports better sustainability planning.

Moderate

Measuring Sustainability program

$10 million over four years for provision of information and data on sustainability.

Moderate

CFI (National) Biochar Capacity Building Program

Support for research, on–ground demonstration of biochar and the development of offset methodologies.

High

Carbon Farming Futures

Up to $99 million over six years for on-farm projects. High

Forestry IGA (National and State) Contractors

voluntary exit grants program

$45 million for grants and delivery costs to provide for voluntary exits from public Tasmanian forest operations for haulage, harvest and silvicultural contractors.

High: Not publically announced yet

Economic diversification

$120 million over 15 years starting with $20 million in 2011/12

High

158

7.2 Infrastructure

The liveability and potential economic development of a region is strongly influenced by each area’s infrastructure through ease of access and travelling times, proximity to doctors and hospitals, schools, and recreational facilities. A lack of sufficient infrastructure, or the loss of infrastructure such as schools, medical clinics, hospitals or access to airports and highways, can prevent economic development or lead to economic decline.

Three target LGAs, Central Highlands, Southern Midlands, and Circular Head have less than half the average number of General Practitioners (GPs) per capita and are also located at a distance from metropolitan centres of health infrastructure. Other target LGAs such as Meander Valley and Kentish also have low ratios of doctors per capita but are closer to health care providers in Launceston or Devonport.