ELECTION 2010: Liberals say SMEs should help pay for government assistance programs

Innovation Minister Kim Carr has slammed a Coalition plan to operate some business assistance programs on a fee-for-services basis, and says the Liberal’s 15-point innovation policy is “lightweight and confused”.

The policy, released yesterday with almost no fanfare, contains promises to refocus and increase funding for the textile, clothing and footwear sector and the automotive sector.

The Coalition has also promised to “refocus” the Labor Government’s Commercialisation Australian program, with a view to making it more like the successful Commercial Ready program cut by Labor in 2008.

But the most controversial promise is to “streamline” SME assistance programs run by the Department of Innovation, Industry, Science and Research. 

The Coalition will create a new division called Business Assist and operate on a fee-for-service basis.

“The Coalition will reduce the assortment of bodies and programs administered by them by amalgamating Enterprise Connect with AusIndustry. The amalgamated division will be called ‘Business Assist’ and will operate on a fee-for-service basis,” the policy statement says.

A spokesman for the Liberal Party’s innovation spokesperson Sophie Mirabella told SmartCompany this morning that any fees would be relatively low and that would only account for a small proportion of the value of services provided.

“The taxpayer should not be required to fund this 100% – that’s the perspective we’re coming from.”

While many of the services offered by Enterprise Connect run on a subsidy basis (including programs through which SMEs can bring consultants and researchers into their business), Kim Carr has been quick to lash out at the Liberal policy.

“The Gillard Labor Government provides free small business services through Enterprise Connect, the business.gov.au website, the Small Business Support Line, and small business advisory services located in suburban, rural and regional Australia. The Coalition says it will make Australian businesses pay for these services.”

Carr has also been quick to criticise the Coalition’s position on the R&D tax credit scheme which was floated by Labor in 2009, but is still yet to be passed by Parliament.

The Coalition says it will retain the current R&D tax concession scheme until July 2011 to provide businesses with certainty in this financial year, but will then look at “future improvements” to the way it operates.

“By opposing the R&D Tax Credit, the Coalition has denied Australian businesses improved assistance and greater access to cash refunds,” Carr said in a statement.

“Now they admit they will consider introducing a similar credit themselves if they ever build up the courage.”