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Legislative Assembly for the ACT: 1997 Week 9 Hansard (4 September) . . Page.. 2896 ..

MRS CARNELL (Chief Minister and Minister for Business and Employment) (11.43): I have a number of concerns with this inquiry. I am very pleased that Mr Whitecross has already accepted the amendments that I put forward. I would be very disappointed, as I am sure many of the people in this house would be, if this inquiry were allowed to bog down the ACT's recently acquired and recognised business development edge.

I hope, from the comments Mr Whitecross has made, that he and the committee will respect the confidentiality of a lot of the information this inquiry will look at. Information that companies give us regarding their own businesses can often be commercial information that I am sure they would not want their competitors to have. Mr Whitecross has indicated that he does understand the confidentiality of a lot of the information that would pass to the committee. If that is used sensibly, I am confident that the committee can progress.

The business incentive scheme is an important element in our support for the private sector to deliver jobs and growth for Canberra's needs. Mr Whitecross acknowledged that, and I am very pleased to hear that. It not only enables eligible local firms to expand and develop new projects but also means that the ACT can be and is an attractive destination for interstate and overseas firms interested in relocating. The ACTBIS process has followed on from its predecessor, the industry assistance program; but it is a more sophisticated and more effective initiative. We are certainly out there promoting it more than it was promoted in the past.

Since the establishment of ACTBIS in February 1996, 26 companies have been supported. Of those, 18 are local companies undertaking expansion. Mr Speaker, 1,932 jobs are expected to be created over the next three to five years from all of the supported projects, with a direct investment of $49.24m expected over the same period. There are a number of safeguards in place to ensure that those outcomes are achieved. For example, the Government monitors the performance of each approved project by way of a formal agreement between the parties which specifies that an approved applicant must submit six-monthly reports detailing the level of investment and employment generated as well as the progress of the project. Each of these agreements sets out the intentions and obligations of both parties and includes contract breach clauses and penalties. These penalties can include repayment of all or part of the assistance package.

The ACTBIS process is administered by the Department of Business, the Arts, Sport and Tourism with the assistance of the ACTBIS panel, which includes independent accounting personnel. It is an initiative that has been embraced by the business community and it has proven itself to be successful in attracting business and jobs to the ACT. If those opposite wished to know about the business incentive package, they only needed to ask. I am happy to support this inquiry going ahead, with the amendments that Mr Whitecross has accepted. I seek leave to move together both amendments that have been circulated in my name.

Leave granted.

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