Australian exporters have been thrown a lifeline from the Government, with Trade Minister Simon Crean reportedly securing an extra $50 million in the budget for the Export Market Development Grants scheme.
The scheme, which provides assistance to exporters by paying back portions of promotional costs, has been attacked by industry groups for being under-funded.
Crean has reportedly confirmed an extra $50 million for the scheme in 2008-09, while the promised $50 million for 2009-10 still remains.
The extra money was supposedly added to the budget after it was made clear that about 1800 businesses would miss out on grants due to the number of businesses applying.
The Government said that these companies, which had applied for grants over $40,000, would only receive about 30% to 50% of their claims. Around 1500 businesses missed out on $30 million worth of grants in 2007.
Ian Murray, executive director of the Australian Institute of Export, welcomed the news this morning. “We are delighted. We understand there is an additional $50 million which will breath life into the small and medium export sector and play important role in the recovery.”
Murray says that the $50 million is sufficient and will assist about 1800 companies. “About one in five jobs is export related. So if a significant investment is made in marketing, business will flow from that and so will jobs.”
Murray says the Government could not have picked a better time to provide the fillip. “The Australian dollar is rising and the export community needs a little assistance. Also companies are starting to set their platforms for recovery and exporters plan a long way ahead so they need to know now what assistance the Government can provide.”
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Patrick Stafford is a freelance journalist and a former deputy editor of SmartCompany.
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