Budget a boon for exporters

NATIONAL: Fashion exporters look set to benefit from extra funding and a dedicated body for the globalisation of Australian business, following announcements in the Federal Budget.

An additional $50 million has been allocated to the Export Market Development Grants Scheme (EMDG), bringing the total amount available to exporters to $190 million in the 2009-10 financial year, according to a budget statement released on May 14.

The revamped EDMG package also included a rise in the maximum turnover limit per business from $30 million to $50 million, and an extension of the number of annual grants allowed from seven to eight.

Also proposed was an extension of the scheme to include the cost of patenting products overseas and a $5000 cut in the minimum threshold of expenditure to $10,000.

Minister for Trade Simon Crean claimed the arrangement was in contrast to that implemented by the previous Government, which had failed to provide additional funding for the program. The Howard Government had promised in 2001 and 2004 to double the number of exporters but since the mid nineties had halved the real value of the scheme, Crean said.

EMDG administrator Austrade would also henceforth be responsible for the Government’s new investment promotion and global opportunities programs. This meant that for the first time the nation would have a single integrated service for globalising Australian businesses, Crean said.

In a separate move, TCF businesses are likely to be affected by a broad-ranging review of federal export policies. The Mortimer Review will, among other issues, further examine aspects of the EMDG.

Along with the Government's TCF Review, the Mortimer Review is expected to report by August 31.