Published Tuesday, 03 July, 2007 at 04:33 PM

Minister for State Development, Employment and Industrial Relations
The Honourable John Mickel
QUEENSLAND GOVERNMENT COMMITTED TO CAIRNS BUSINESS
Minister for State Development John Mickel today said the Queensland Government is fully committed to the economic development of Cairns and the Far North Queensland region.
“The Cairns State Development office will provide guidance to Cairns Region Economic Development Corporation (CREDC) cluster groups that were supported by state funding.
“It’s clear from figures provided that CREDC made no attempt to change in line with a new funding arrangement of 2005, and that it doesn’t have the capacity to do so under its current structure,” Mr Mickel said.
“On this basis I am not prepared to continue to fund CREDC.
“Minister for Child Safety and Member for Cairns, the Honourable Desley Boyle MP, has sought a commitment from me that funding which has been committed to future economic development will remain in the Cairns region.
“I have given Minister Boyle and the business community of the region an assurance that the $250,000 in annual funding previously allocated to the CREDC will remain in Cairns and the surrounding region.
“I recognise there may be opportunities for new clusters to form in future and this is a matter the Department of State Development will continue to work on.
The Advanced Indigenous Business cluster and others backed with Federal money are a responsibility for the Federal government to manage.
“The CREDC figures make it clear that a substantial financial contribution is made by the Federal Government. CREDC receives minimal financial support from the Cairns business community, a situation I consider disappointing.
“The Queensland Government’s agreement with CREDC has been for the delivery of specific projects to be determined over the course of the agreement. CREDC has used government funds to support day-to-day operations.
“This is not good enough: taxpayers money must be better spent,” Mr Mickel said.
The Queensland Government had approved more than $47.6 million [$47,610,838] in business assistance to Cairns and the Far North region since 1998.
Media contact: Chris Brown 3224 7349 or Elouise Campion 3224 6784
July 3, 2007
“The Cairns State Development office will provide guidance to Cairns Region Economic Development Corporation (CREDC) cluster groups that were supported by state funding.
“It’s clear from figures provided that CREDC made no attempt to change in line with a new funding arrangement of 2005, and that it doesn’t have the capacity to do so under its current structure,” Mr Mickel said.
“On this basis I am not prepared to continue to fund CREDC.
“Minister for Child Safety and Member for Cairns, the Honourable Desley Boyle MP, has sought a commitment from me that funding which has been committed to future economic development will remain in the Cairns region.
“I have given Minister Boyle and the business community of the region an assurance that the $250,000 in annual funding previously allocated to the CREDC will remain in Cairns and the surrounding region.
“I recognise there may be opportunities for new clusters to form in future and this is a matter the Department of State Development will continue to work on.
The Advanced Indigenous Business cluster and others backed with Federal money are a responsibility for the Federal government to manage.
“The CREDC figures make it clear that a substantial financial contribution is made by the Federal Government. CREDC receives minimal financial support from the Cairns business community, a situation I consider disappointing.
“The Queensland Government’s agreement with CREDC has been for the delivery of specific projects to be determined over the course of the agreement. CREDC has used government funds to support day-to-day operations.
“This is not good enough: taxpayers money must be better spent,” Mr Mickel said.
The Queensland Government had approved more than $47.6 million [$47,610,838] in business assistance to Cairns and the Far North region since 1998.
Media contact: Chris Brown 3224 7349 or Elouise Campion 3224 6784
July 3, 2007