Industry Commission's report on assistance to industry inaccurate

24/2/98

Commerce and Trade Minister Hendy Cowan has rejected claims by an Industry Commission report that selective assistance to industry brought negligible returns to Western Australia.

Mr Cowan said the commission's final report on 'State Territory and Local Government Assistance to Industry' was little changed from a flawed interim report released in July last year.

"This report also overstates Government spending on industry assistance and continues to discount the vital role the WA Government has played in fostering dynamic, internationally competitive industries," he said.

"For example, its figure of $250 million for WA Government outlays to assist industry includes the total budget of 16 agencies as diverse as the Department of Conservation and Land Management and the Art Gallery of WA as well as the Department of Commerce and Trade.

"The WA figures for so called 'assistance' are further inflated by the inclusion of payroll tax concessions, worth $390 million, which are available to all small businesses.

"In fact most Government spending identified in the report is not directed to individual projects or firms but used to fund information provision and industry promotion to the benefit of businesses in general.

"Government support for export marketing, enterprise improvement and research and development is mostly directed to encouraging small and medium sized enterprises to take a further step on the growth path.

"Major investment assistance is aimed at attracting new industries to the State and is only provided when the benefits in terms of employment and opportunities for local firms are clearly identifiable.

"For example, the Government has provided a range of incentives to help establish WA as a significant centre of industries servicing the oil and gas sector and in the process help attract many new jobs and business opportunities.

"This approach is supported by the Federal Government's own Mortimer Report, released last year, which advocated a strategic approach towards investment attraction.

"The Industry Commission report is also misleading in its criticism of excessive secrecy and of competition between the States.

"The processes of the Department of Commerce and Trade are transparent and all financial assistance is reported to Parliament annually.

"The WA Government has no interest in competing with other Australian States, we are well aware that the real competition is global and we strive to be the best in the world."

Media contact: Peter Jackson 9222 9595