25 February 2009
Export Market Development Grants Scheme Payouts
The Minister for Trade Simon Crean today warned exporting firms to expect lower than anticipated payouts through the Export Market Development Grants (EMDG) scheme, on grants assessed over $40,000, due to a funding shortfall created by the previous Coalition Government.
“The Howard Government allowed this important scheme to be run down and did not provide sufficient funds to cover changes they introduced to the EMDG scheme’s eligibility criteria.
“As a consequence we are facing a significant shortfall in funds to cover current applications for expenses incurred in 2007-08,” Mr Crean said.
Companies that applied for grants of up to $40,000 will receive the full value of their claims. This represents more than half, or approximately 2200, of the companies that will receive grants.
There are approximately 1800 companies that applied for grants in excess of $40,000, who are expected to be paid at the rate of 30% to 50% on the balance of their claims above $40,000.
The EMDG scheme is a reimbursement system based on expenses incurred in the previous year. The current allocations are for expenses in the financial year 2007-08. The eligibility rules for this period were set by the Howard Government.
Mr Crean said the previous Government even changed the rules, in its last 18 months in office, knowing full well it would encourage more people to apply to the scheme, but did not provide extra funding.
“The Howard Government is to blame for this shortfall through its failure to properly fund the scheme,” Mr Crean said.
“The Labor Government has introduced changes which delivered on our pre-election commitments to make the EMDG scheme more accessible, particularly to businesses in the services sector and those based in regional areas.
“In contrast to the previous Government, Labor’s changes have been funded by an additional $50 million for next year’s EMDG payments. Total funding has been increased from $150 million to $200 million for applications relating to the 2008-09 financial year,” Mr Crean said.
The EMDG scheme is administered by Austrade.
Media Inquiries: Mr Crean's office 02 6277 7420 - Departmental Media Liaison 02 6261 1555