15 July 2008

Initial Export Market Development Grants (EMDG) Payment for the 2007-08 Grant Year

Minister for Trade, Simon Crean, today announced that the initial payment amount under the Export Market Development Grants (EMDG) scheme for the 2007-08 grant year would be $40,000.

“The former government’s failure to adequately fund changes they made to the scheme two years ago has resulted in a lower payment this year,” Mr Crean said.

Grant recipients for the 2007-08 grant year with an entitlement up to and including this amount will be paid in full. Recipients with entitlements above this amount will receive a second tranche payment at the end of June 2009. The amount of the second tranche payment will be determined at that time.

The lower initial payment for 2007-08 is due to decisions made by the previous Coalition Government about the scheme in 2006. Those decisions were:

• eligibility conditions were changed which had the effect of increasing grant claims sharply in 2007-08 (by 26.8%) and may lead to a further increase in claims this year; and
• the previous Coalition Government did not provide any additional funding to cover the financial impact of those changes.

In contrast when Labor made changes to the EMDG scheme it provided an additional $50 million in 2009-10 for expenditure incurred by exporters in the 2008-09 grant year.

“Unlike the previous government, Labor has funded the changes it has made to the scheme”, Mr Crean said.

“Labor’s changes will make the scheme more accessible, particularly to businesses in the services sector and those based in regional areas, and deliver the Government's pre-election commitments relating to EMDG.”

To ensure that the EMDG scheme continues to be effective in supporting the promotion of Australian exports Minister Crean announced a comprehensive review of all Federal Government export policies and programs – the Mortimer Review - which is now underway.

Media Inquiries: Mr Crean's office 02 6277 7420 - Departmental Media Liaison 02 6261 1555