Australia’s private equity and venture capital association (AVCAL) criticised the National Commission of Audit’s recommendations to abolish innovation funding programmes.
According to Avcal, the proposals are “flawed and demonstrate a lack of genuine commitment to fostering a stronger Australian economy in the future.”
Avcal CEO Yasser El-Ansary said, “The Commission of Audit has got this wrong – abolishing key support programmes such as the Innovation Investment Fund and Commercialisation Australia is not going to help our economy to become more innovative and more competitive into the future.
“A small open market economy like ours has to focus on assisting Australian businesses to compete on the world stage, and that’s hugely important to bringing about productivity-enhancing reforms that will create more jobs and more economic growth in the years ahead.”
He added that there are no credible or compelling arguments to support these recommendations.
“Given the significant structural change that is taking place right now across key industry sectors such as manufacturing, the government must put in place policies that promote greater private sector investment in new business ventures, which will ultimately play a vitally important role in Australia’s future economic growth,” said El-Ansary.
Avcal noted that an independent review conducted in 2012 said Australia’s Innovation Investment Fund (IIF) was a successful model for developing a venture capital market that generated substantial economic benefits.
“This evidence indicates that the IIF can continue delivering on its stated objectives well into the future,” said Avcal.
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