Export Market Development Grants Act 1997 Determination (1/1997 AB) Guidelines for the approval, variation of approval, and cancellation of approved bodies (Cth)

EXPORT MARKET DEVELOPMENT GRANTS ACT 1997

Determination

(1/1997 AB)

Guidelines for the approval, variation of approval, and cancellation of

approved bodies

I, Tim Fischer, Minister for Trade, pursuant to paragraph 101(1)(c) of the Export Market Development Grants Act 1997 (the Act), determine the following guidelines.

OBJECTIVE

The approved body provisions under the Act are designed to encourage export focused industry organisations to promote Australian products on behalf of their particular industry to bring significant net benefit to Australia.

CRITERIA

1.           In deciding whether to grant approval to a person as an approved body, Austrade will consider whether the applicant meets the objective by reference to the assessment requirements.

2.           Without limiting clause 1, this objective will be met where Austrade is satisfied that:

a)       Where the applicant is a body corporate representing the interests of an industry or a substantial part of an industry, the applicant is the peak industry association promoting on behalf of that industry and its members,

b)      The applicant does not export in its own right, and promotion is for the benefit of the generic industry rather than for the benefit of individual members,

c)       The applicant has planned export promotional activities for the industry,

d)      The applicant's export promotional activities are commercially feasible,

e)       The applicant's export promotional activities are financially feasible,

f)       The applicant cannot distribute income to its members or shareholders,

g)       The applicant generates revenue primarily through industry/member contributions,

h)       The applicant's promotional activities can bring significant net benefit to Australia.

ASSESSMENT REQUIREMENTS

In assessing whether the criteria have been satisfied, Austrade will give weight to the following considerations:

a)The applicant will be considered the peak industry association where it can demonstrate that it;

·        represents the majority of businesses engaged in that total Australian industry,

·        has the power to promote overseas on behalf of its members.

b)           The applicant should demonstrate that;

·        it is established for the benefit of third parties,

·        it does not export in its own right,

·        its promotional activities are for the benefit of the generic industry rather than for the benefit of individual members.

c)         Export promotional activities will be considered planned where the applicant's business/export plan for its members includes;

·       market research that has been undertaken for specific target markets,

·       an analysis of the industry's strengths and weaknesses,

·       specific promotional activities to be undertaken,

·a list of objectives and milestones to be achieved and a timetable for their achievement.

d)         The commercial feasibility of the applicant's export promotional activities will be assessed having regard to;

·       the technical and managerial skills of the applicant,

·       the skills and level of staffing (more than two employees),

·       the track record of the applicant in developing new export activity.

e)         The financial feasibility of the applicant's export promotional activities will be assessed    having regard to;

·        the proposed expenditure budget,

·        the arrangements for funding the promotion,

·        the applicant's current financial position,

·        financial projections for the next three years,

·       the applicant's administration costs.

f)The applicant must demonstrate in its enabling documents that it is unable to distribute income to share holders or members.

g)           The applicant should generate its income primarily through subscriptions or dues from industry/members.

h)           The applicant must demonstrate that the export promotional activities have the ability to generate significant net benefit to Australia by providing;

·projected export earnings to be generated by the applicant over the next three years,

·       the industry's current level of exports,

·        increased employment,

·       new capital investment,

·       introduction of new technologies and any new value added operations.

EXCEPTIONS

1.           Approval will generally not be granted where the applicant is merely acting as a grants funding agent for its members or where it has been formed purely for the purposes of obtaining a grant.

1. Approval will generally not be granted where the applicant is duplicating the promotional activities of another approved body in the same industry.

1. Approval will generally not be granted where approval will result in a disproportionate level of grant funding being directed to any one industry.

VARIATION OF APPROVAL

In deciding whether or not to vary an approval Austrade shall consider the proposed variation against the guidelines as in force on the day on which the approval took effect and Austrade shall not vary the approval unless it is satisfied that it could do so if the approval as proposed to be varied were an application under section 88 of the Act.

CANCELLATION OF APPROVAL

1.           Austrade shall cancel an approval where it is not possible to vary the approval to meet the guidelines for the approval of a person as an approved body as in force on the day on which the approval took effect.

1. Austrade shall cancel an approval where there has been a failure to comply with the conditions to which the approval is subject.

Signed:   ____________________________

Tim Fischer, Minister for Trade

Dated:   1/7/97