Regional Development Fund

In reply to Mr PEDERICK (Hammond) (1 August 2017). (Estimates Committee B)

The Hon. G.G. BROCK (Frome—Minister for Regional Development, Minister for Local Government): I have been advised:

As at 30 June 2017, of the 88 projects offered grants from the Regional Development Fund the total value that have not proceeded is $7.7 million. This includes $2 million for seven projects that did not proceed after they were initially announced. These projects were proposed by:

Gadaleta Steel Fabrication

Kelly Engineering

Dowling Potatoes

Holla Fresh

Gather Great Ocean Group

Clare and Gilbert Valleys Council

McLaren Vale Distillery

Examples of why some projects did not proceed include a change in the direction of the project, an inability of the recipient to meet its co-investment contribution, or a sudden industry downturn that affects the demand for a company's product or service.

When grants don't proceed, the funding allocated to the project returns to the Regional Development Fund to be allocated to other projects, so there is no net loss to the distribution from the Fund.

Grant payments are made on a reimbursement basis when agreed milestones are met. Accordingly, no money was paid on any of the projects where the project did not proceed.