The Allan Labor Government’s venture capital firm, Breakthrough Victoria, has been exposed for failing to deliver for Victorian taxpayers, a Parliamentary Committee has heard.
In 2021, Labor promised the $2 billion fund would deliver 15,700 jobs. Yet, under questioning today by the Victorian Parliament’s Public Accounts and Estimates Committee (PAEC), the Minister for Economic Growth, Tim Pallas, confirmed that after three years of operation and spending $330 million of taxpayers’ money, only 1,800 jobs can be attributed to investments made by Breakthrough Victoria, or around 11 per cent of the target.
Furthermore, Minister Pallas and the Department of Treasury and Finance refused to confirm how much revenue Breakthrough Victoria has actually received from its investments or what return these investments will achieve for Victorian taxpayers.
Despite the Minister telling Parliament on 21 March 2024 that the government expected an eight per cent return on investments made by Breakthrough Victoria, today he walked away from that commitment.
This comes as the recent 2024-25 State Budget reduced Breakthrough Victoria’s annual funding by $90 million or $360 million over four years. However, theMinister’s claim that this was a ‘savings initiative’ was exposed as fake by Department of Treasury and Finance officials who confirmed Breakthrough Victoria would still be spending $2 billion of taxpayers’ money.
Shadow Minister for Industry and Innovation, Bridget Vallence, said: “The dismal performance of the Breakthrough Victoria fund proves Labor cannot manage money and Victorians are paying price.
“Labor promised that its Breakthrough Victoria fund would deliver 15,700 new jobs, but so far after spending $330 million of taxpayers’ money, it is failing this measure by only achieving 1,800 jobs or 11 per cent of the target.
“The Minister has backpedalled his commitment that Breakthrough Victoria would achieve an eight per cent return on investment and refused to outline whether these investments are providing value for the Victorian economy.
“Labor’s Breakthrough Victoria is failing to achieve key targets and remains shrouded in secrecy.”
