12 May, 2009
Export Market Development Grants - Extra $50 Million to Guarantee 100 Per Cent Payouts in 2008-09
Cash-strapped Australian exporters will get a much needed funding boost when their Export Market Development Grants are paid in full for 2008-09.
The Federal Government has delivered an extra $50 million this year to help small and medium sized exporters through the global recession.
Minister for Trade Simon Crean said the Rudd Labor Government had delivered for exporters after the previous Government had failed them.
"The Howard Government went to an election having expanded eligibility for the EMDG scheme but without the funds to pay for it and deceived our exporters.
"We will not stand by and let exporters suffer - even though the funding shortfall was not a problem of our making.
"In the midst of the global recession - but with Australia better positioned than most and with opportunities in the Asian region - it is vital we ensure much needed liquidity to those exporters who continue to pursue trade opportunities despite the most difficult export conditions in living memory.
"The extra $50 million will provide a much needed stimulus to exporters that will protect jobs and increase market share," Mr Crean said.
The extra funding will be paid to an estimated 1800 Australian companies that employ more than 34,000 workers.
The money will be delivered in grants in June 2009.
Eligible small and medium sized exporters were facing second round payouts from the scheme of as little as 30 cents in the dollar.
"With the funding boost, exporters will now receive 100 per cent of their eligible expenses," Mr Crean said.
"The Rudd Government is delivering for the nation's exporters. We are supporting our exporters as they try and plan for the future in the midst of the global recession."
"We understand the pivotal importance of SME exporters and the critical contribution they make to the economy and to employment."
The IMF, World Bank, the OECD and the WTO have all recently emphasised the enormous challenges confronting exporters.
The International Monetary Fund forecast in late April that world trade volumes would drop by 11 per cent in 2009. The IMF is also forecasting the global economy will contract by 1.3 per cent in 2009.
"Trade is an important stimulus to economic growth and must be a central part of Australia's response to the global recession because it will be critical during the economic recovery, when it comes.
"The recent signing of the ASEAN-Australia-New Zealand Free Trade Agreement and the entry into force of the Australia-Chile Free Trade Agreement demonstrates the Government's commitment to keeping markets open," 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