Victoria to spend $90 million to boost employment, economy

A customer counts his Australian dollar banknotes at an exchange office in downtown Cairo, Egypt, April 19, 2016. Reuters/Amr Abdallah Dalsh

Victoria is geared to spend $90 million to attract businesses to the state as part of its efforts to boost employment. The move is also expected to advance economy as car manufacturing and other industries wind down.

The news was announced by the State Government, but details of how the money would be utilised were not immediately provided. The government said the money would be use to retain and create jobs in industries such as aviation and manufacturing.

Industry Minister Wade Noonan said the funding would imply a message that the state is open for business. The move follows a similar $116 million investment in the 2016 budget.

Noonan recognised that the funding is important for the Victorian economy as it seeks to grow new jobs. He said as a state, it acknowledges the need to actively compete in a globally competitive marketplace. The minister went on to share that over the past year, the Victorian government has helped more than120 companies establish their business which provided full time jobs to at least 4,100 people and resulted to $1.5 billion in new capital investment.

But the funding does not seem to impress everybody with Opposition spokesman Ryan Smith arguing that it lacks transparency. He also pointed that earlier investments had failed to deliver results. "Previous grants have not been allocated in a transparent way and [there is] really very little to show Victorians what the money is being spent on,” ABC has quoted him saying.

The government’s announcement comes amid news that Rinnai, a Japanese company that sells water and heating systems, will add 160 jobs in Melbourne's south-east. Over 2,500 jobs are expected to go once Toyota’s Altona production plant closes. Last year, 600 jobs were gone when Ford closed down its Broadmeadows and Geelong factories.

The Hazelwood power station switched off in March, leaving hundreds of people jobless. Australian Sustainable Hardwood (ASH) reportedly announced that it is closing its timber mill which means the state will lose another 260 jobs.

Noonan believes that a program like this should not be questioned. He has also stated that the government has to do its role to facilitate opportunities. He said new opportunities should be explored for Victorians to have access to paid work. For this reason, investments like these really do matter according to the minister. "The indirect impacts will come by way of jobs in supply chains as well,” Noonan added.