Nine of the State’s 35 business enterprise centres could be closed under proposed future plans announced by Small Business Minister John D’Orazio.
Nine of the State’s 35 business enterprise centres could be closed under proposed future plans announced by Small Business Minister John D’Orazio.
The closures came to light after Mr D’Orazio released his review of the BEC network in Parliament last week for public comment.
‘BEC review – the way forward’ is the result of the Gallop Government’s two-year review of the operation and structure of the State’s 35 BECs and how they can be improved.
But the review, which proposed the Wyalkatchem, Mukinbudin, Wongan Hills, York, Tambellup, Jerramungup, Collie, Margaret River and Welshpool centres be closed, has already come under scrutiny from the Opposition and industry sources.
Opposition small business spokesman Troy Buswell called the plans a “devastating blow to small business”.
“The issue is access to services,” he said. “At least in the metro area you still have other BECs within a reasonable distance but this isn’t the case for regional areas.
“All closures are going to have a significant and severe effect on small business.”
However, Mr D’Orazio said a significant boost in resources available to the network of centres would result from the proposals.
The review details how the remaining 26 centres (seven metro and 19 regional) would be funded to a total of $3.189 million and divided into five zones - the north-west, central, metro, south-west, and southern zones.
The minister said core funding would range from $90,000 to $140,000 per centre depending on the areas it services compared with the $60,000 to $70,000 each centre currently receives.
But Mr Buswell said there was no logic to these figures or any rationale based on business numbers or population figures.
“It’s the old pick-a-figure, whoever has got the right colour dot on the map gets the most money,” he said.
Small Business Development Corporation managing director George Etrelezis disagreed. He said there were a range of factors looked at when working out funding for the individual centres, including the extent of the area covered, the type of travel and on-costs, workload now and that expected in the future, and proximity to other BECs.
“There is a small core of BECs feeling aggrieved (about the review) but the greater majority are saying it is a platform for the future,” he said.
For example, the Gosnells BEC would receive $120,000 and Fremantle $100,000, with the latter receiving less because of an overlap with the Rockingham BEC, which has also been allocated $100,000. Gosnells receives more than Fremantle because it extends to include the suburb of Armadale and other areas.
Other proposals included core funding for the network increasing to $2.83 million from $2.28 million in the first full year of operation and an additional $185,000 of capital funding enabling the network to upgrade its telecommunications and IT systems.
“Another $174,000 will be allocated to developing and marketing the network’s service and expertise,” Mr D’Orazio said.
But Mr Buswell was not convinced, saying: “It should be noted that the increase in operating income is a one-off increase for the current financial year only and operating funding to the BEC network will return to existing levels in subsequent years.”
“The capital funding promised is the money the Government has withheld from the BEC network over the last couple of years.”
One source told WA Business News that the review did not address the terms of reference – which included improving the efficiency and effectiveness of service of the BECs.
However, Mr D’Orazio refuted the claim, saying the review looked at the network of centres and funding and how to measure their success through key performance indicators.
“The centres will have to deliver outcomes and we will be clearly identifying how they will show this to us under new contracts with each centre,” he said.
“It will be clearly measured and not just about showing the services delivered but the outcomes.”
The review also proposes changing names from BEC to the WA Business Assistance Centres.
BECs contacted by WA Business News declined to comment about the review.
