State regional development organisations have proposed the federal government provide grants to businesses with plans to expand to create jobs during the coronavirus recovery period.
The four bodies want the federal government to match expansion plans from private businesses dollar for dollar with a minimum grant application of $50,000 and a cap of $1 million.
The call comes from the Northern Tasmania Development Corporation, Cradle Coast Authority, the Southern Tasmanian Council Authority, and the Regional Development Australia state body.
RDA Tasmania chief executive Craig Perkins said the rationale behind the call was to help rebuild Tasmania by providing sustainable employment opportunities, particularly within sectors that had been impacted by the pandemic.
He said the grants would allow businesses to compete in new or growing markets.
CCA chief executive Daryl Connelly said the plan would create new jobs in the state's regional areas.
"The expected outcome of the proposed grant program would be increasing workers' skills and knowledge, enabling local businesses to reach new customers locally, national and overseas, and boosting the competitiveness, productivity and profitability of regional businesses," he said.
NTDC chief executive Mark Baker said strict grant criteria would provide necessary oversight.
"Applicants would need to show their capacity to complete the projects and what the return on investment would be," he said.
STCA representative Bec Enders said grants program matched many recommendations from the Premier's Economic and Social Recovery Advisory Council's interim report.
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