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:
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 $82,292 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 $480,074. During the financial year 28 clients paid out their BFS loans.
As at 30 June 2006 a total of 49 BFS loans remain active. A total of $709,828 in repayments has been returned this financial year into the TSRA General account. While the majority of the loans remain within the fishing industry, it is pleasing to see that Torres Strait Islanders are undertaking a diversified range of commercial activities. For example, of the loans financed in 2005-2006 period the following areas of commercial activity were undertaken:
In conjunction with BFS, workshops were undertaken by Learning Network Queensland in Computer Basics, Word, Excel, PowerPoint, Internet/Email and Digital Imaging. Workshops were also presented by the Australian Taxation Office covering such topics as Record Keeping, Superannuation, Completion of Business Activity Statements and other aspects of taxation requirements for business.
It is encouraging that the Business Funding Scheme remains a successful business mechanism for Indigenous people, as they take on the challenge of private enterprise in a varied range of commercial activities.
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 $2,635 in insurance costs was paid on behalf of housing clients.
Achievements This year a total of $890,796 has been released to seven housing loan clients for either the purchase of new homes or the renovation and expansion of existing dwellings. A total of $925,255 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 40.
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 $4,061,306, including roll-overs, which was committed for Community Economic Initiatives Scheme (CEIS) projects and is detailed in the table below:
Funds were committed for a number of projects with work due to commence early 2006-2007. These include the construction of a Guesthouse on Boigu Island, and the construction of the Warraber Island Resort. These enterprises are expected to continue the economic success of the island councils upon their completion.
The Hammond Island Fuel Project is now completed with this facility being an asset to the community and an opportunity for Council to generate income.
The Warraber Island Resort will consist of eight self-contained units, a reception and office area, restaurant and commercial kitchen, conference room suitable for up to 30 persons, an open area for guest activities, Manager's residence and staff amenities building. The facility will provide employment and training for community members and income for Council.
The Boigu Guesthouse, to be completed in 2006-2007, will provide much needed accommodation for contractors, representatives from government departments and others, as well as providing employment and training for community members and income for Council.
Supermarket extensions and Holiday Park accommodation units at Seisia were completed in 2005-2006 and have enabled Council to meet the ever-changing needs of tourists and a diversified range of visitors. These visitors require camping and/or villa accommodation, quality service, clean facilities and a location by the sea.
How to Apply for the Community Economic Initiatives Scheme For more information about CEIS, click here, Community Economic Initiatives Scheme.
