Private developers receiving government grant must jump through another hoop: O'Byrne
A new procedure requires Tasmanian private developers, receiving $500,000 of government funding for a project of $5 million and above, to complete a Tasmanian Industry Participation Plan (TIPP).
David O'Byrne, Minister for Economic Development, said that this is red tape that developers do not need.
He said that clarity needed to be provided around this plan and what it means for developers if they do not fill out the TIPP, asking: “Will they be penalised? Will their development be stopped? Will they have to pay back government funding? Who is policing it?"
Minister Michael Ferguson's blog explains that when taxpayers fund or contribute to a project they should expect a benefit from the development and construction, as well as when the project is finished.
"TIPPs are a practical way to make sure more Tasmanians and more Tasmanian businesses are involved in local projects," Ferguson writes.
"A [TIPP] means a project proponent will need to detail the capacity and anticipated participation of local suppliers in the project and the benefits to the state that the project will create. So when there’s a major project local suppliers are actively sought out and considered."
Tasmania certainly has a number of challenges when it comes to ensuring the economy, communities and property market thrive. Jonathan Chancellor recently wrote about the troubling unemployment rate.