Labor claims mismanagement in multimillion-dollar grant schemes

The State Government has agreed to review a $20 million fund designed to help small businesses through the COVID-19 downturn, after claims some were refused cash without reason.

THE State Government has agreed to review a small business grants scheme after Labor claimed the $20 million fund was fraught by haphazard decision making.

The government announced the $15,000 Small Business Hardship Grants in April to help enterprises hit by the economic impact of the coronavirus pandemic.

In state Parliament, Opposition leader Rebecca White recited multiple examples of businesses which had experienced severe hardship yet had failed to receive support.

She said some businesses which had been able to continue trading had received grants, while other businesses which had been forced to close had received nothing.

Labor leader Rebecca White led the charge during a sitting of state parliament, saying businesses have been refused the grant with no apparent grounds. Picture: Chris Kidd

And comparable businesses had received wildly different outcomes, she said.

“Not all businesses have been supported, and not all businesses have been treated equally.

“These businesses aren’t asking for a handout for nothing — they’ve been struggling, they’re suffering severe financial hardship.

“They just wanted the process to be managed in a way that was fair and equitable that delivered outcomes based on the circumstances that they are facing.”

Premier Peter Gutwein has committed to looking into why some businesses were awarded grants and others were not. Picture: Chris Kidd

Mr Gutwein said he would look into the claims the opposition had raised.

“Without understanding the circumstances of those businesses or the impact of COVID on them I am not able to explain why they did not receive a grant,” he said.

“We have tried to be equitable, we have tried to be fair.”

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The Premier said the government had spend more than $30 million supporting 18,200 Tasmanian small businesses with grants of varying sizes.

Labor also pointed out that a key component of a $3 million skilled visa program announced nearly two months ago had not yet been delivered.

Yesterday afternoon Minister for State Growth Michael Ferguson said the Temporary Visa Holder Skilled Employee Assistance Program was now open for applications.

The program will provide payments of up to $2000 for up to 500 skilled workers on temporary visas, such as chefs and accommodation, hotel and restaurant managers.

Applications close on June 18.