FACT SHEET #F4: ECONOMIC DEVELOPMENT

What is in the Budget on business and economic development?
$4.2 million has been allocated to a new service to provide high-growth businesses with mentoring, information services and connections to entrepreneurial activities and funding sources.  These services will be particularly targeted at small and microbusinesses.

To reduce overheads, the Department of Economic Development and the Office of the Small Business Commissioner will be absorbed into the Chief Minister’s Department.  

How does the ACT compare to other States and Territories?
The Government this year spent 61% more than the national average on economic development — $542 per business, compared to an average (excluding the Northern Territory) of $336. 

Despite this additional expenditure, business support programs — such as the Knowledge Fund — have not represented the best use of resources and in many cases have duplicated programs provided by the Commonwealth.

How will support to business be managed in the future?
The Government will focus on providing support to business through:
•	Simpler, clearer and more efficient government structures, scaled to the realities and potential of Canberra as a small city-state;
•	Sound economic management and strong fiscal policy;
•	A responsive and cost-effective public service and open access to government contracts and services;
•	Streamlined land development processes; and
•	Stable industrial relations.