Export Market Development Grants (Close Relationships - Events Promoters) Determination 2002

Overview

The Export Market Development Grants (Close Relationships – Events Promoters) Determination 2002 was enacted to address the need for clear guidelines in determining the relationship between events promoters and event holders when assessing eligibility for export market development grants under the Export Market Development Grants Act 1997. This legislative instrument was introduced by the Minister for Trade, Mark Anthony James Vaile, and is designed to assist Austrade, the Australian trade and investment promotion agency, in forming an opinion on whether an events promoter is closely related to an event holder. The policy objective is to ensure that grants are awarded fairly and that there is no artificial structuring of relationships to qualify for funding. The Determination outlines specific considerations for Austrade to assess the nature of the relationship, including the extent of control or influence between the promoter and the holder, the promoter's client base, and the promoter's independence.

Scope and Application

The Export Market Development Grants (Close Relationships — Events Promoters) Determination 2002 applies to entities involved in promoting events as part of the Export Market Development Grants Act 1997. It specifically governs the relationship between event promoters and event holders to ensure that grants are awarded appropriately and not misused. The scope of the Determination includes entities such as event promoters and event holders who may be considered for export market development grants. The jurisdictional reach of this Determination is under the Commonwealth of Australia, meaning it applies nationally. The Determination provides guidelines to Austrade, the agency responsible for administering the grants, to assess whether an events promoter is closely related to an event holder, thereby affecting eligibility for grants. It excludes certain relationships from being classified as closely related if the promoter is engaged on a competitive commercial basis or if the relationship does not involve control or influence over one another.

Key Provisions

The Export Market Development Grants (Close Relationships — Events Promoters) Determination 2002 (sections 4 and 5) outlines the criteria and factors that Austrade must consider when determining whether an events promoter is closely related to an event holder. Specifically, section 5 lists several key aspects that Austrade must evaluate, including the nature of the connection between the promoter and the holder, the extent of control or influence each party has over the other, the timing of the promoter's operations, the exclusivity of their business relationship, the promoter's client-seeking activities, and whether the promoter is involved in promoting multiple events. Section 6 provides additional guidance, stating that a close relationship exists if the promoter is not genuinely separate from the holder, if there are artificial corporate arrangements designed to qualify for a grant, or if the entities fall under the Export Market Development Grants (Close Relationships — General) Determination 2002. Conversely, Austrade may conclude that there is no close relationship if the promoter is engaged on a competitive basis, if the promoter is not set up solely to promote the holder's event, and if neither party has control over the other, or if their relationship stems from the formation of an organising committee or secretariat. Under this Determination, Austrade has specific obligations when assessing the relationship between events promoters and event holders. The obligations include a thorough examination of the connections, control, and influence between the two parties, as well as consideration of the timing and exclusivity of their business dealings. Austrade must ensure that its assessment is comprehensive and unbiased, taking into account all relevant factors and circumstances. Additionally, Austrade must be vigilant in identifying any artificial arrangements or attempts to circumvent the grant eligibility criteria. These obligations are crucial in maintaining the integrity of the grant program and ensuring that funding is awarded fairly and appropriately. Failure to comply with the provisions of this Determination can result in legal consequences. While the specific offences, penalties, or consequences are not detailed within the Determination itself, breaches of the Export Market Development Grants Act 1997 or related legislation could lead to civil or criminal penalties. For instance, if an entity is found to have engaged in fraudulent activities or misrepresentations to qualify for grants, they could face fines, imprisonment, or both, depending on the severity of the offence. It is important for parties involved to understand and adhere to the guidelines set out in this Determination to avoid any potential legal repercussions.