WA will suffer if C'wlth cuts funding to Ausindustry program

31/7/96

Western Australian industry will suffer if the Federal Government cuts funding to the joint Commonwealth/State AusIndustry program in this year's Budget, according to  Commerce and Trade Minister Hendy Cowan.

Speaking at the Australian Conference on Exporting in Perth, Mr Cowan said 663 WA firms had used a total of 878 AusIndustry services during the last financial year.

"These services have enabled small and medium-sized businesses to bring in outside expertise to help them improve their operations," he said.

"The increased competitiveness of WA industry has made an important contribution to the State's performance in job creation, economic growth and exports.

"Regional businesses which have used more than 20 per cent of these services would be particularly hard hit, as the program gives them access to services they could not normally access."

In WA, AusIndustry is administered by the Department of Commerce and Trade

Mr Cowan said the State Government had allocated $2.3 million to the program for 1996-97 in anticipation of growing demand for AusIndustry services.

"If the Federal Government reduces its contribution, it will mean there is less support available for local firms," he said.

"It will also mean that our partnership with the Commonwealth in AusIndustry will need to be reviewed."

Mr Cowan said that while he accepted that the Federal Government's election policy had foreshadowed cuts to industry assistance, he thought there were other areas which should share the burden.

"Apparently, some programs run solely by Canberra are to be quarantined from these cuts," he said.

"This would be most unfair, especially as the AusIndustry services are delivered efficiently by the Department of Commerce and Trade and are very responsive to local industry's needs." 

Media contact: Peter Jackson 222 9595