While most businesses in Western Australia would leap at the chance to get government help, most, unfortunately, end up with nothing; so how did 12 local companies qualify this year for grants worth $25 million?
While most businesses in Western Australia would leap at the chance to get government help, most, unfortunately, end up with nothing; so how did 12 local companies qualify this year for grants worth $25 million?
The 12 companies, from a wide spectrum of industries, were recipients of commercial ready grants, which the federal government uses to promote advanced research and development.
The only common link between the companies was their potential for developing new technology and possibly new industries.
They also have committed to provide matching funding, which is a condition of the grants.
Private company Lignor Pty Ltd was awarded the biggest grant in WA this year, and one of the biggest ever awarded under the commercial ready program.
Its $3.85 million grant will be used to support the planned development of an engineered strand lumber plant at Albany costing more than $200 million.
The plant will provide a new market for plantation timber and a new source of building materials for the construction industry.
Several companies that were awarded commercial ready grants this year have proven adept at obtaining government assistance under a variety of programs.
Lignor, for instance, was awarded $1.4 million in 2005 to support its project.
CustomVis plc, which is developing a new type of laser treatment for eye surgery, has obtained federal government assistance under three different programs, including the biotechnology innovation fund and export marketing grants.
The most recent was a $2.3 million commercial ready grant (see page 14).
East Perth-based Alkane Exploration provides a rare example of a mining company gaining assistance under the commercial ready program. Its $3.3 million grant will go towards development and construction of an innovative pilot plant at its Dubbo zirconium project in NSW.
Private Bassendean company Hofmann Engineering is another exception to the norm, for two reasons.
It is a mature and profitable business but has a strong commitment to R&D.
Its $3.2 million grant will support development of a new manufacturing process for large gear-driven transmission products, such as those used on minefields in draglines and excavators
Another mining services company, EMT Group, was awarded just under $1 million to help develop a prototype underground vehicle for explosives handling.
WA is also home to some of the smallest recipients.
Weed Control Australia Ltd was awarded $82,000 last year for its precision spraying system, while Kwinana-based Bobtail Technologies was recently awarded $300,000 to commercialise its Soilscan technology, which uses electronic sensors to measure water and nutrient content on irrigated farms.
Ernst & Young principal Peter Ferguson said companies needed to put a lot of work into their grant applications; they needed a strong management team, a robust business plan and their own funding.
The turnover cap for companies applying for a commercial ready grant was doubled earlier this year to $100 million, he said.
