The Allan Labor Government's 'landmark' venture capital fund, Breakthrough Victoria, will be stripped of $360 million in funding over four years as a 'savings initiative' of the 2024-25 Victorian Budget.
Breakthrough Victoria, chaired by former Labor Premier John Brumby, has failed to demonstrate value for money, being slammed for its lack of transparency and a series of poor investments that resulted in job cuts or jobs offshore.
Labor has broken its promise that the fund would create certainty for industry and a pipeline of 15,700 new jobs. The 2024-25 Victorian State Budget instead has stretched the investment profile out from 10 years to 15 years, and nearly halved the number of investments it expects to make from 19 to 10.
This comes after several directors indicated their intention to quit the fund in recent months, and increased scrutiny as to whether the fund could provide any benefit for the Victorian economy.
The Victorian Auditor-General is also considering an audit of Breakthrough Victoria and what due diligence it undertakes for its investments after an appeal by the Liberals and Nationals.
Shadow Minister for Industry and Innovation, Bridget Vallence, said: "It is astonishing that after only two years of operation, Labor is slashingits 'landmark' Breakthrough Victoria innovation fund by $360 million.
"There has been secrecy around Labor's Breakthrough Victoria fund from the beginning and serious questions about its value for the Victorian economy.
"As debt hits a record high, the failure of the Breakthrough Victoria venture capital operation again shows that Labor cannot manage money."
