“Funding has been paused as part of the mid-year review, which is a responsible action taken by the Federal Government in view of the decrease in commodity prices,” she says.
Zelinksy says funding has been on hold since around late August, which has affected 37 of the 95 BECs nationally.
The remaining BECs do not rely on government funding and Zelinsky says government funding is not the only form of funding for BECs.
“We are not a government institution solely dependent on money from the government, the BECs are continuing to provide the support services they do outside of the federal funding,” she says.
“Only 37 were funded under the previous Small Business Advisory Service funding arrangement; two-thirds were operating anyway and continue to operate but we obviously look to the additional funding from the Federal Government to expand services to small business and continue them.”
Zelinsky says some of the funding cuts have hit hard in South Australia where there have also been changes to the funding model and one BEC has been forced to close. However, as the BEC closed before the government put a hold on funding, she says the “pause in funding” is not to blame for that closure.
“Certainly, whilst the BECs are waiting to hear if they are successful in the funding round they have had to reduce their resources and the government is aware of that. But BEC Australia is working very hard with the BECs to determine their ongoing commercial viability and reducing the dependence on government funding,” she says.
Zelinsky says the office of the Minister for Small Business, Brendan O’Connor, has been in touch with BEC Australia on a regular basis and she met with the minister only two weeks ago where he confirmed his ongoing support for Small Business Advisory Service funding.
She says she is hopeful an announcement ending the funding freeze will be made before the mid-year review on November 9.
“It is my understanding that an announcement is pending and I don’t for one minute believe we are not going to get that money,” says Zelinsky.
A spokesperson for Small Business Minister Brendan O’Connor said funding under the Small Business Advisory Service is available through a competitive grants process and that the assessment process is progressing.
“No decision has been made about successful grantees and applications are currently being evaluated,” the spokesperson said.
“Announcements about successful organisations are expected shortly.”
This story first appeared on SmartCompany.
Cara Waters is a former SmartCompany editor. Previously, Cara was a senior reporter for the Financial Times’ website and worked for The Sunday Times in London.
