Grants flow to Tasmanian businesses, promising investment and jobs
Businesses across Tasmania have received $13 million in Federal Government grants, with expectations $40 million in total will be injected into the state economy as a result, creating 400 new jobs.
The grants to 41 businesses range from $50,000 to $1.4 million, and come from the Innovation and Investment Fund, one of the Government's pre-election commitments.
GJ Engineering near Launceston received $87,000 to buy new equipment.
Federal Industry Minister Ian Macfarlane said it was a good investment.
"GJ's are going to be able to bring in a new piece of equipment, which they've been wanting to buy for some time, but with this grant they're now able to buy it sooner and able to put on two extra people, fully qualified tradespeople," he said.
The engineering company said it planned to use the grant towards a $174,000 vertical lathe to diversify and increase machine part production, and improve general engineering services.
Company owner Graeme Howard said it would mean the project would be started and completed sooner.
"I would have done it anyway, but what the grant will achieve is we'll be able to do it a lot sooner," he said.
"So we're starting now, where I probably wouldn't have started looking at this for another year or so.
"This has given me the opportunity to bring all my plans forward by at least 12 months, if not longer."
The Federal Government expected Tasmania's economy would get a $40 million injection and 400 new jobs, as the grants were tied to commitments of about $27 million in investments from the grant recipients.
Seventeen new jobs have been promised in George Town and Bell Bay.
George Town Seafoods has won $420,000 towards a $1.3 million project to expand its salmon processing facility, promising 14 new jobs.
Timberlink Australia said it wanted to use its $150,000 grant for a $343,000 project to install new sawmill bins, leading to three new jobs.
Other grants include $144,000 to the Bay of Fires Bush Retreat for retreat-style accommodation worth $344,000, leading to six new jobs; $1.1 million to SD Reid Holdings for a $4.5 million undercover cherry orchard that promises 30 new jobs; and $695,000 to National Pies in Hobart for a $1.8 million project creating 12 jobs.
