Joint media release

Australian Minister for Trade, Mark Vaile and the Minister for Industry, Science and Resources Minister, Nick Minchin

September 15, 1999

Automative Leather Dispute

Trade Minister, Mark Vaile, and Industry, Science and Resources Minister, Nick Minchin, today announced that Australia had implemented the WTO Panel findings in the Howe automotive leather dispute on 14 September. This was the date for implementation established by the WTO.

"Following consultations with Howe representatives, the company has agreed to repay $8.065 million of the $30 million grant provided in 1997, " the Ministers said.

This amount reflects the prospective element of the grant payment. It is the proportion of the grant monies found to be applied to the sales performance targets contained in the Grant Contract for the period from 14 September 1999 until the end of the Grant Contract on 30 June 2000.

In addition, the Grant Contract with Howe & Company has been terminated and there are no performance requirements on the company.

"By Howe's repaying this amount and our terminating the Grant Contract, we will comply with the WTO Panel ", Mr Vaile said

Separately, the Government has agreed to provide an additional loan of $13.65 million to Australian Leather Holdings. Senator Minchin noted that the Panel had declared an existing loan to Australian Leather Holdings was not in breach of the WTO.

"There will be no conditions attached to the new loan nor any link to automotive leather, Senator Minchin said.