The Territory Labor Government’s number one priority is to create local jobs to boost our economy.
Attracting and supporting private investment opportunities is crucial to growing and diversifying our economy.
In October 2018, Government announced that the NT Infrastructure Development Fund (NTIDF) will wind up, and half the remaining funds would be used to pay down debt and the other half used to establish the Local Jobs Fund to create more local jobs immediately.
Details of the financing options to be offered through the new $91.5million Local Jobs Fund are now available.
The suite of four products to be offered by the Fund are:
· Loan Guarantees ($100,000 - $5 million each) – to support fast-growing Territory businesses to expand and create new Territory jobs. The Guarantee will be issued in favour of lending institutions and provide funds for appropriate investments, including for the expansion of production capacity or export capability development
· Business Investment Concessional Loans ($100,000 - $3 million each) – to de-risk project opportunities, bring forward private investment and deliver projects to final investment. All projects seeking funding must demonstrate how they will create and sustain new local jobs and drive increased economic activity
· Equity Co-Investments (up to $5 million each) - to provide equity capital to high potential and innovative Territory ventures to secure funding and accelerate business development and growth into national and global markets, stimulating economic activity and creating Territory jobs
· Grants:
o Priority Sector Collaborative Grants ($100,000 to $1 million) – provide funding for consortia within Territory priority growth and developing sectors to collaboratively progress sector-wide initiatives which will advance local industry capability, innovation and business development.
o Infrastructure Grants (up to $10 million each) – for economically transformational projects which clearly demonstrate that new and enduring Territory jobs will be delivered and that broader benefits to the Territory which result in a step-increase in economic activity and output
In addition to specific criteria for each product, all projects will need to:
· be in one of the Territory’s growth and developing sectors identified in the Economic Development Framework, or a related supply and service sector, and
· demonstrate that government financial assistance will result in new or increased goods and services exported interstate or overseas or new or increased goods and services which substitute imports
Applications to the Local Jobs Fund will open in early 2019.
Applications will be assessed by the Department of Trade, Business and Innovation with advice from an Expert Advisory Panel, which will also be announced early in 2019.
The Panel of up to four individuals will include private sector operators with strong experience in investment banking, finance, legal and commercial sectors.
The total cost of the Local Jobs Fund is $91.5 million, which includes $89 million to be offered through the Fund and $2.5 million to support administration including staffing and access to specialist advice.
The Fund will run for two years or until it is fully committed. For further information on the fund visit jobsfund.nt.gov.au
Quotes to attribute to Treasurer Nicole Manison.
“The Territory Labor Government’s number one priority is to create local jobs, especially during the tough economic times we are currently experiencing – increasing private sector investment in the Territory will do just that.
“The Local Jobs Fund is designed to provide the catalyst for additional private sector investment and lead to Commonwealth project funding.
“Using the Local Jobs Fund, Territory businesses will be able to get projects investment ready, undertake detailed feasibility studies, leverage private sector finance and investment and reach financial close.
“Projects supported through the Fund will create new and lasting jobs, be high growth and enable broad economic development.”
Media Contact – Hannah Farmer – 0428 497 154