 | Financial Assistance to Industry |
| Financial Assistance to Industry |
Key findings included:
the Treasurer was not provided with reliable information to gauge the
effectiveness of industry assistance because suitable systems, monitoring procedures and
performance indicators were not in place; financial assistance was provided on terms which were ineligible under
policy guidelines with the Economic Strategy; many decisions of the Victorian Development Corporation were
contrary to recommendations of lending officers; the expanded role of the Corporation together with its unrestricted access
to borrowings contributed to it becoming an aggressive lender in a high risk environment; non-performing loans increased substantially including $60 million relating
to advances in 1987-88; and additional funds were made available to borrowers who were already
suffering financial difficulties.
