Economic Development

Program Overview: Economic Development

This output is comprised of one major program, the Economic Program, which supplements and contributes to mainstream programs aimed at increasing the economic empowerment and status of Torres Strait Islander and Aboriginal people living in the Torres Strait region. The Program also aims to develop opportunities for enhancing employment, training, enterprise development and home ownership.

The Economic Program is comprised of 3 sub-programs:

1. Business Funding Scheme (BFS);
2. Home Ownership; and
3. Community Economic Initiatives Scheme (CEIS).

SUBPROGRAM: BUSINESS FUNDING SCHEME (BFS)

Objective
To increase the economic independence of Torres Strait Islander and Aboriginal people of the Torres Strait region by facilitating the acquisition, ownership and development of commercially viable enterprises in accordance with the principles of sustainable economic development.

Description
The BFS has enabled the establishment of a number of businesses within the Torres Strait region, all of which provide an important service to the wider community. The BFS promotes the economic independence of Torres Strait Islander and Aboriginal people by helping them acquire, own and develop commercially successful enterprises. Over the years, the BFS has assisted many individuals and partnerships to establish successful business ventures in a range of industries. This in turn creates employment for the Indigenous people of the Torres Strait and Northern Peninsula Area.

One of the key success factors in the Economic Development Program is the use of business consultants to assist clients in establishing their business and, if required, to provide ongoing professional assistance. In addition, the TSRA pays clients’ legal costs. This includes legal advice associated with forming the business and the preparation of legal documentation. If required, the BFS provides an additional service to clients, organising and paying for insurance over the assets. The insurance cost is then charged back to the client’s loan account. A total of $43,460 in insurance costs was paid on behalf of BFS clients.

Achievements
The Business Funding Scheme is proving a significant source of commercial finance for
Torres Strait Islanders wanting to establish or expand their businesses. During the financial period, a total of six loans were advanced at a total value of $48,333. During the financial year 13 clients paid out their BFS loans.

As at 30 June 2007 a total of 36 BFS loans remain active. A total of $531,506 in repayments has been returned this financial year into the TSRA General account. While the majority of the loans remain within the fishing industry, the BFS continues to support businesses in a diverse range of local industries. In 2006-2007, loans were financed in the following sectors.

In conjunction with BFS, workshops were undertaken by Learning Network Queensland in Computer Basics, Word, Excel, PowerPoint, Internet/Email and Digital Imaging. The following table provides a breakdown of the number of participants that attended workshops coordinated and hosted by the TSRA.

How to Apply for BFS
To find out if you are eligible for the Business Funding Scheme and to download an application form, click here,  TSRA Business Funding Scheme.

SUB-PROGRAM: HOME OWNERSHIP

Objective
To provide home ownership for the Indigenous residents of the Torres Strait region through home loans, thereby improving their economic status and social wellbeing.

Description
The Home Ownership Scheme provides home or land loans at concessionary interest rates to Torres Strait Islander and Aboriginal people living in the Torres Strait region who would not normally be able to obtain assistance from conventional lending institutions.

The scheme is targeted at low income, first home buyers according to a points system based on family size and rental circumstances. The scheme is self-funding. If required, an additional service that the Home Ownership Scheme provides to clients is the organising and paying of insurance. The insurance cost is then charged back to the client’s loan account. A total of $6,534 in insurance costs was paid on behalf of housing clients.

Achievements
This year a total of $67,080 has been released to three housing loan clients for either the purchase of new homes or the renovation and expansion of existing dwellings. A total of $1,161,573 in repayments has been returned during the financial year into the Housing Account. In addition, four housing loans have been paid out leaving the total housing loan portfolio at 34.

How to Apply for the Home Ownership Scheme
For more information about the Home Ownership Scheme and to download a Home Loan application form, click here, TSRA Home Ownership Scheme.

SUB-PROGRAM: COMMUNITY ECONOMIC INITIATIVES SCHEME (CEIS)

Objective
To contribute directly to the economic growth of communities by supporting the development of income generating projects with social, cultural and economic benefits.

Description
Through this component grants are provided to Torres Strait Islander and Aboriginal
organisations for the establishment and/or expansion of commercial income generating
ventures.

Achievements
During the financial year, the TSRA approved $3,554,416 including roll-overs, which was committed for Community Economic Initiatives Scheme (CEIS) projects and is detailed in the table below:

Notes:
* $300,000 contribution from the Commonwealth Department of Transport & Regional Services
**$150,000 contribution from Qld Department of State Development, Trade & Innovation
***Funds rolled over from 2005-2006 financial year

How to apply for CEIS
For more information about CEIS, click here, Community Economic Initiatives Scheme.