Uncertainty on development cash

By PAULA OLIVER

A $110 million economic development spendup trumpeted by the Government on Budget day is not what it seems - the funding is not guaranteed.

Last week's Budget was, as usual, accompanied by a pile of press releases detailing new spending.

One boasted that $110 million would be spent over four years to respond to the recommendations of four sector taskforces set up by the Government as part of its much-hyped Growth and Innovation Framework.

But when the Business Herald asked how the $110 million figure was calculated, a spokesman confirmed that the figure was not actually cast in stone.

"It could be less," admitted the spokesman when asked about the $110m. "Theoretically it could be more."

The funding is listed as a contingency, or a "risk", in the back of Dr Cullen's red budget book that would be considered for funding should it eventuate. It falls into the same category as the possible commitment of up to $34 million to help fund an America's Cup challenge, which is dependent upon raising private sector funds and an appraisal of the economic benefits that could be won from it, not to mention a challenge actually going ahead.

The taskforces that would benefit from the funding relate to four sectors: information and communications technology, biotechnology, design and the screen production industry.

The Government targeted them as keys to long-term prosperity and has received reports from three of the taskforces so far.

Two of the reports recommend tax incentives.

The Government is now considering these recommendations, and in Parliament this week Economic Development Minister Jim Anderton said he was sure the taskforces would get a positive response.

His spokesman could not say when that response would come, but said that none of the recommendations had yet been ruled out.

Some ministers were going back to their individual departments to come up with a response.

Screen and production industry taskforce chair Julie Christie said her group was meeting next week to go through submissions made on the report.

She wanted to see a Screen Council set up in about three months to look at ways of implementing the taskforce's recommendations - among them tax incentives.

"I'm totally confident that everything will be implemented. I can't see any reason why any of it wouldn't be," she said.

In reply to a Parliamentary question about the screen production taskforce this week, Anderton said the Government had provided $110 million in the budget for responding to recommendations.