The EMDG scheme is supposed to help export-focused small and medium-sized Australian businesses become sustainable exporters by providing partial reimbursement of certain export promotion expenses but the Government refuses to provide any useful financial support. Businesses with approved grants of up to $27,500 will receive the full value of their EMDG claims. However, serious exporters with applications for grants in excess of $27,500 are expected to be paid at the rate of between 45 and 65 cents in the dollar on the balance of claims above $27,500. Effectively the Government is deserting serious exporters
These payment amounts are the result of strong demand for this popular program and a finite pool of funds.
To help exporters deal with the aftermath of the financial crisis the Government did provide an extra $50 million in additional funding in each of the past two financial years, however with the current strengthening of the Australian dollar exports are now less competitive than during the GFC. The exchange rates now strongly favour importers.
Parliamentary Secretary for Trade, Justine Elliot, continued “However, in keeping with the Government’s commitment to return the Budget to surplus, total funding for the EMDG scheme has returned to its historical average.”
So why is the budget in deficit? Consider the Labor Government spending decisions that include:
- Stimulus Package $42.0 billion – majority spent on imported goods
- Home Insulation Scheme $ 2.5 billion – 75% of insulation was imported
- School Halls and Libraries $16.2 billion – rorts and rip offs reduced the value provided to $10b
- National Broadband Network $43.0 billion – cable is outdated and obsolete. Original quote was only $4.7b
Exporters that provide employment to millions of Australians, pay all sorts of state and federal taxes, investment in Australia, profits, improved balance of trade are being ignored – AGAIN..