The Export Consultants Group of the Australian Institute of Export has called upon the major political parties to make a commitment to increase incentives for exporters in their respective trade policy statements in the run up to the election.
Mr Peter Campbell, Chairman of the Group, said that Export Market Development Grants Scheme (EMDGS) had proved to be an excellent means of encouraging Australian firms to become exporters and expand export markets.
Econometric analysis has shown that the EMDGS produces excellent multipliers, demonstrating the overall effectiveness of each dollar of grant funding. The return on investment of EMDG to the Government and to the business community has been outstanding. Many flourishing exporters owe their early success to the valuable support received from the EMDGS.
During the last decade, however, the real value of EMDGS to Australian exporters has been significantly diminished due to funding caps and access restrictions imposed by the current Federal Government. As a result, the effectiveness of EMDGS as a change agent has been severely restricted.
“We are constantly being reminded of the importance of increasing Australia’ export performance, to bring benefits to our local economy, strengthen the internationalisation and sophistication of Australia’s products and markets, and improve our balance of trade”, Mr Campbell said.
“Improvements to the EMDGS are required to ensure that the program is most effective in supporting Australia’s export activities. The annual EMDG Budget allocation is a pittance when compared to the R&D assistance provided by the Government. While the development of new products and technologies is of undoubted importance, surely, supporting the internationalisation of these products is just as critical for Australian businesses and the future of our economy.”
Mr Campbell said the Institute had made a series of recommendations to the major parties (see attached) and was awaiting a positive response.
For further information call Mr Campbell on (02) 9524 1084 or 0414 670 089