Gunnedah Shire Council’s Business Partner Program, described as “unwieldly” and even a “waste of time”, has been shelved.
The council-funded, business grant program was temporarily suspended at council’s last ordinary meeting, pending a decision about potential changes to program guidelines.
It was agreed this decision would be made after the council election with new elected representatives.
It followed an unfavourable report into the business program’s efficacy which said it delivered “limited” economic growth in Gunnedah – a core principal behind the grants.
It also found there was “weighting” given to adding employees to the business, which as the report noted is not relevant in the low unemployment economic environment.
Council was told the Business Partner Program, which received $40,000 in annual funding, aimed to promote economic activity in the Gunnedah shire by encouraging business growth and innovation. But according to the report, a “significant” number of successful applicants in the last four years did not acquit their grants when offered only partial payment for the total amount applied for.
The investigation found the grants, which were often between $1000 to $5000, were “more likely to be utilised” for smaller projects such as signage and websites.
When the report was presented to council, views were mixed whether to defer the program or cancel it altogether.
Councillor Ann Luke raised a motion, which was ultimately lost, to permanently discontinue the business support program.
“The time for this program has been,” she said. “There would be more ability to create a new one from scratch rather than rejigging this awkward, unwieldy program.”
Cr Luke said it was with “reluctance” she brought forward the idea, given her long involvement with the program including as chair of the grant committee, as community panel member and prior to her time on council, as a business grant recipient.
She said the program now required “more rules” to ensure objectivity in way the funds are allocated which made grant allocation and delivery, difficult.
“It has been a good program in its time … but in my opinion, it’s getting more messy,” she said.
The motion was supported by then deputy mayor Rob Hooke who said it provided “very little benefit” for recipients. He said the program was “lacking punch” and failed to reach its intended employment outcomes.
“In most cases businesses are very small and the [limited funding] does not give them any leverage to increase employment,” Cr Hooke said. “At best gives some level of sustainability.”
Councillor Colleen Fuller opposed the motion to discontinue the program on principal of “not breaking a promise” to the community.
Cr Fuller explained she had told previous unsuccessful applicants to reapply in future rounds of the program.
Cr Juliana McArthur said removal of the program would go against the ‘open for business’ slogan which the Gunnedah shire promotes.
“Even if a business doesn’t show an uptick, perhaps that business is sustained and that’s not a bad thing,” Cr McArthur said.
“I accept we shouldn’t be a crutch for business but it is a worthwhile program.”
Cr Robert Hoddle, who was also involved in the grant selection process, said it was “very difficult to be fair” when awarding grants which did not address the aims of the program anyway.
“We need to look at other areas to help businesses,” he said.
“As far as I’m concerned, it’s been a waste of time.”
Cr Murray O’Keefe did not support closing the program altogether but said the shire needed to reactivate growth in other areas. He thought Gunnedah should “pivot” toward growing the residential base instead.
“While I won’t be part of the new council, I want to make sure it sits as something they have to consider, and they can’t forget about or get focused on other things, and lose the legacy this chamber has fostered, that desire for growth, need to support our businesses,” Cr O’Keefe said.
“It’s not about picking winners at exclusion of others, it’s about council backing winners and investing in winners that are going to grow our shire and move the dial for our community – it’s a partner program.”
Councillors agreed no further rounds of the Business Partner Program would be announced until changed guidelines are adopted by the new council.
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