The Department of Business and Innovation (DBI) is Victoria's
lead economic development agency for attracting new investments and
encouraging established businesses to invest further in the
Over the period from 2008–09 to 2010–11, 336 business investment
projects received grants and/or non-financial assistance. These
projects were expected to generate $8 billion in capital
expenditure, create 18 000 full time equivalent jobs and increase
exports by $1.5 billion.
DBI does not clearly define objectives for investment attraction
and does not have a comprehensive strategic plan governing the
various activities it performs to attract investment to Victoria.
Without a strategy, DBI does not have the information it needs to
improve the effectiveness of its investment attraction
DBI's promotional activities are well planned and organised, and
appropriately targeted to priority industries and investment
It is likely that DBI's investment attraction activities have
contributed to Victoria’s strong and stable economy and attractive
business environment for most of the past 15 years, even though it
has not undertaken any analysis to demonstrate the influence its
activities have had.
The effectiveness of the grant assessment process is questioned
as over 50 per cent of the applications examined in this audit
received grants despite not meeting the eligibility criteria and
there was insufficient information to appropriately assess
DBI needs to provide more guidance on the application of
eligibility criteria, particularly those relating to innovation and
DBI does not have a formal process for assessing and approving
access to facilitation services.