Growth fund to attract business and boost new industry in SA to get a Budget boost

A cash injection will be given to a program that encourages businesses to move to SA. It’s already funded a major tech company and a rocket launch.

A business program that helped lure a tech giant to Adelaide and supported a rocket launch in the South Australian Outback will get a $150m boost in next month’s State Budget.

Treasurer Rob Lucas told The Advertiser that the Economic and Business Growth Fund would get the cash injection, on top of a $70m commitment earlier in the year, in a bid to help struggling industries and attract companies to the state.

The money will be spread over four years.

It will more than double the size of the fund, which was $100m over four years when first announced in 2018.

Mr Lucas said the program would focus on attracting numerous businesses in key sectors, as opposed to picking winners. However, it has scope to provide support for individual businesses with Cabinet approval.

“We are more about the industry sector, and attracting a range of businesses into a sector that we may have identified as key sectors for the future, like we have with space and cyber security,” he said.

“If there are programs available for a range of companies, not just one, that would be the emphasis.

“But certainly over the next two years, while we focus on the COVID recovery, there will be a number of businesses, like (global tech giant) Accenture and (orbital rocket launch) Southern Launch, where it will be used.”

Treasurer, Rob Lucas said the Economic and Business Growth Fund would get the cash injection, on top of a $70m commitment earlier in the year, in a bid to help struggling industries and attract companies to the state.

The State Government has come under fire from Opposition Treasury spokesman Stephen Mullighan for failing to commit more stimulus money and get it out the door quicker.

The Auditor-General released a report earlier this month showing that, at the end of the financial year, about one third, $289m, had been spent from the allocated $1bn.

At the time, no money had been spent from the extra $70m business growth fund.

In the past few years, the fund has been used in a range of areas including:

TOURISM marketing for the winter.

MINING exploration grants.

INFRASTRUCTURE to help rebuild Thomas Foods plant in Murray Bridge.

A GRANT to help Mitsubishi Motors Australia Limited build its national headquarters at the Adelaide airport

The Advertiser last month revealed global technology and services giant Accenture would set up an Adelaide hub at Lot Fourteen, with a plan to create 2000 local jobs.

Mr Lucas said Accenture had also been a beneficiary of funding from the business growth program but did not disclose how much.

Start-up company Southern Launch was provided $650,000 from the fund to help pay for successfully firing two small rockets from the Koonibba Test Range, northwest of Ceduna, to the edge of space.