The Federal Government’s reforms today of the vital Export Market Development Grants (EMDG) scheme will help counter some of the devastation wrought on small business exporters by the worldwide pandemic.
“ACCI has long championed the EMDG scheme for helping entrepreneurial Australians take a bold leap into overseas markets,” ACCI CEO James Pearson said.
The EMDG scheme was green-lit for further improvements today by the Federal Government, helping Australian exporters improve their promotional opportunities abroad.
“Acknowledgement of the scheme’s value could not have come at a more crucial time.
“The disruption to supply chains, the havoc wreaked on the market by travel and freight restrictions, and geopolitical tensions emphasise how important it is to invest in expansion and diversification.”
“We know Australian firms are hungry to revisit clients and look for new markets. Impovements, such as reform of the scheme from a reimbursement package to a true grant program, will provide more confidence – and we cannot emphasise enough how important confidence is in getting businesses to take risks and head back to the markets.
“The reimbursement system was plagued with uncertainty. Exporters had a high risk of oversubscriptions which would mean reimbursement amounts diminished according to demand. The new design embraces the concept of “do more, get more” based on forward export plans and the scale of the market development efforts.”
ACCI notes the ongoing scheme funding remains unchanged from the pre-COVID levels of $157.9M, despite the current COVID stimulus boost to $200M.
“We urge the Government to reconsider this in the coming budget and maintain the scheme funding at $200M in order to support more firms to rebuild existing markets and look for new markets as quickly as possible so they can get cash flowing and jobs pumping,” Mr Pearson said.
