Incentives to promote export-oriented industries

Western Australian businesses are to receive big financial incentives to invest in strategic export-oriented industries.

The incentive program would aim to attract industries that provided long-term investment, jobs and export earnings for the State, Premier Carmen Lawrence said today.

Projects that involved downstream processing would be given priority.

"Investment growth in strategic industries will mean more diversified exports and generate a robust economy able to deliver a wide range of jobs.

"Financial incentive funding will be trebled to $30 million."

Dr Lawrence said targeted industries included mineral and new materials processing, agricultural processing, pulp and paper production, biotechnology, information technology, advanced materials, aerospace, recycling and waste management and defence.

"The Government will identify strategic industries which have research and development potential so that new technological investment opportunities are encouraged," Dr Lawrence said.

Factors to be taken into account included the:

·         investment contributed by the proponents;

·         number of jobs generated;

·         size and importance of new market access;

·         technology transfers; and,

·         strategic benefits to Western Australia.

"The assistance package will be offered to eligible industries so long as the incentive does not confer an unfair competitive advantage over established industries," Dr Lawrence said.

"Industries prepared to establish in regional areas will receive additional assistance.  Under the Investment Attraction Program up to 10 per cent of total capital cost will be offered for projects in the metropolitan area and up to 15 per cent for regional projects.

"The packages would be subject to agreements approved by Cabinet and reported annually to Parliament."

They would be tailored specifically to the needs of the particular project, and could include:

·         capital establishment grants;

·         provision of approved land on a concessional basis;

·         buildings;

·         payroll tax rebates;

·         royalty rebates;

·         stamp duty exemptions or rebates;

·         concessions on State charges;

·         assistance in obtaining development approvals and,

·         access to other assistance programs.

"The program will provide an important stimulus to processing raw materials, particularly in regional areas.

"Aggressive marketing of this incentives package will be undertaken by the Government to inform national and international companies that Western Australia is the best place for investment.

"The marketing campaign will concentrate on strategic industries, traded services, tourism and culture.  New industries in these sectors will be eligible for assistance provided they meet the criteria." Dr Lawrence said.