Shortfall predicted for export grants
Austrade’s popular Export Market Development Grants (EMDG) scheme has received an unexpectedly high number of applications, which will most likely result in a shortfall, said Minister for Trade Simon Crean.
More than 5,000 Australian businesses submitted grant applications this year, an increase of 15 percent compared with last year. Claims have also risen 20 percent to more than $269 million.
According to Austrade, final payment outcomes won’t be known until final processing of EMDG applications in June, but it estimates that businesses approved for grants up to $50,000 will receive the full value of their claim.
While these claims represent the success of Australia’s export sector, large grant claims are not likely to be fully covered, however. Said Crean: “We are now faced with a shortfall in funds to cover claims above $50,000.”
Last May, the Federal Budget aimed to restore EMDG coffers by providing $50 million in additional funding for the scheme in 2008/09 and a further $50 million in 2009/10.
For more on the EMDG scheme, visit www.austrade.gov.au/exportgrants
Got something to say? Join the export forum here at DynamicExport.com.au.
