Ratepayer money re-routed to Dunedin businesses is providing a return for the city, the Dunedin City Council says.
While the return is not direct, those involved in economic development say there are tangible benefits, with an internship programme for the information communication technology (ICT) sector an example.
The council this week invested $388,475 in private entrepreneurial ventures it hopes will generate jobs and income for the city through its industry project fund.
Some have questioned what the payback is for the council and its ratepayers.
Economic development committee chairman Cr John Bezett said yesterday there were three funds available for businesses: the $660,000 industry project fund; the $60,000 research support fund and the $120,000 market support fund.
The council decided in January to add $461,000 to the industry project fund to make the most of any opportunities presented by the recession.
Cr Bezett said the results of the council's financial input were often unreported, because businesses generally reported back to the council at meetings with the public excluded, due to the commercial nature of the reports.
But there were clear lines of communication, and strict criteria for companies when they reported the results of the funding.
While the payback for the city was not always tangible, the whole idea of the funds was to stimulate business activity in the city, and attract jobs.
"It's to create jobs, and help industry to grow," he said.
Asked to provide an example of success, council business development adviser Graham Strong said an internship scheme was one.
A Dunedin ICT business cluster, with a chief executive forum of between 45 and 55, and a general cluster of 114 people in the industry had been set up in the past for "like minded" businesses to find ways to co-operate for their benefit.
That was facilitated by the council's economic development unit, New Zealand Trade and Enterprise and Upstart.
Eighteen of those companies had put in a joint bid for industry project funding for the internship programme.
"A range of companies were struggling to find quality staff," Mr Strong said.
A lack of finance was one barrier to companies taking on interns.
"The idea was: `how can we find quality talent to help those businesses do what they do?'."
The result was a $19,000 grant for a system where $2300 per intern was offered for interns from the University of Otago or the Otago Polytechnic.
The companies would put in the same amount they received from the grant.
A "speed dating" night was held in September, where students with their CVs met company representatives, and 26 interns were placed.
Both companies and students would report back to the council independently.
The benefit to the companies was to be able to unearth quality talent, with the students staying in Dunedin for the summer period.
The students would benefit from experience working for Dunedin companies.
