MT145

12 September 1995

MORE INDUSTRIES ELIGIBLE FOR EXPORT GRANTS

Companies providing event management services and companies involved with computer software design will soon be eligible to apply for government support through Austradeís Export Market Development Grants (EMDG) Scheme, the Minister for Trade, Senator Bob McMullan said today.

Senator McMullan said the two new service industry sectors have been accepted as 'Eligible Services' under the EMDG Act.

"The decision follows a recent review of grants support eligibility for certain service industry sectors," Senator McMullan said.

There are three major considerations in deciding if an industry provides services considered eligible under the EMDG Act:

sale of the service must directly generate additional export income for Australia

competition for the supply of the service must be substantially with overseas suppliers

and the potential increase in export income must be significant.

Senator McMullan said the event management sector shows significant potential to increase export income.

"Australian convention centres and bureaus and professional conference organising companies have been competing successfully against US, European and Asian competition to win a steadily growing share of the events market around the world," Senator McMullan said.

"Being eligible for EMDG should encourage more companies to bid for this business."

Companies involved in software application design services are also increasing Australia's export income.

Senator McMullan said Australia is becoming recognised as a cost-competitive centre of excellence in software design.

"EMDG will help Australian suppliers meet the key skills requirements of the world's growing information technology and communications markets," Senator McMullan said.

For these two industry sectors, the availability of funding will start from 1 July 1996.

Eligible marketing expenditure incurred after 1 July 1996 can be lodged as a full-year claim for the first time, effective from 1 July 1997.

The EMDG Scheme currently provides over $200 million of support to some 3,500 exporters.

Exporters are reimbursed 50 per cent on overseas marketing expenses above $15,000 per year.

The scheme offers up to $250,000 per year as a maximum grant ($200,000 after 1 July 1996).

As the scheme's primary purpose is to support small to medium sized companies in their export endeavours, companies who record export sales above $25 million per year are ineligible to apply for a grant.

Further information:

Senator McMullanís Office: John Flannery, (06) 277 7420

Austrade: Lidija Terzic, (02) 390 2356

Michael Tindall, (02) 390 2763