EXPLANATORY STATEMENT
Determination limiting membership of approved joint ventures and consortia
Issued in accordance with subsection 40BH(l) of the Export Market Development Grants Act 1974 (EMDG)
The Export Market Development Grants Act 1974 has established an export incentives scheme. Within certain limitations, the scheme part reimburses the export development and promotional costs of Australian residents endeavoring to export Australian goods and services.
Section 40BD of the Act provides that the Australian Trade Commission may approve a group of persons as an approved joint venture or consortium (ANC). Approval is 'project' specific and an AJVC may not undertake activities outside of the approved 'project'. An ANC has a status separate from the activities of its members, and grants paid to the ANC do not limit the right of an individual member to receive grants In its own right. Previously there was no limit to the number of ANC of which a person may be a member.
The EMDG scheme is focused on small to medium size business. It is considered that this business does not have the resources to meaningfully pursue unlimited numbers of projects. a concentration of resources in a few projects generally would lead to greater overall success.
Section 40BH of the Act provides for a limit to be placed on the number of ANC of which an individual may be a member at any one time. Subsection 40BH(l) provides that that limit be set by ministerial determination. A limit of three (3) is considered appropriate and the Minister for Trade made a written determination to this effect on 4 July 1996.
Subsection 40BH(5) provides that the determination is a disallowable instrument for the purposes of section 46A of the Acts interpretation Act 1901.