The commissions proposal to eliminate the EMDG scheme - the government assistance for exporters is “madness ” says Ivan Kaye - CEO of Business Strategies International -
The EMDG scheme is one of the most successful programmes that the Australian Government has to support SME exporters which effectively put them on a level playing field, offsetting the high Australian dollar and the tyranny of distance. The scheme has been running for 40 years and For every dollar of subsidy, exporters generate $12 of export revenue - giving a direct benefit to Australia.
The Emdg scheme subsidises exporters by reimbursing up to 50pc of marketing expenses relating to export activities , limited to export revenue generated over a period of 8 years.
The general manager of the Australian Instititue of Export, Peter Mace, has labelled the proposed cut as "insane"
Mace said the Export Market Development program is “seen to be very effective, especially in supporting small businesses which are competing against well-funded overseas companies”.
Considering it is less than a month since the government announced a $50 million boost to the scheme, Mace said “it would be insane for the government to now eliminate it”
“If the government wants Australian business to develop and really grow, it needs to support export opportunities,” said Mace.