Additional comments by Senator David Fawcett

Liberal Party Senator South Australia

Multiple reviews of the EMDG scheme have demonstrated broad support for a program that has been a key enabler for business initiatives to increase exports from Australia.  The key to that success has been that the initiatives were taken by business.  They are best placed to know which markets will suit their products and the cost/risk required to both gain and sustain a market share.  In the case of exports such as wine, every vintage could be said to represent a new marketing effort where just retaining market share is in fact a positive outcome.

The government has taken two issues affecting the EMDG program.  First, a budget measure to reduce spending by $25m as part of their failed attempt to deliver a budget surplus.  Secondly this bill which changes the focus and operating criteria of the program.

Feedback from business has clearly indicated that while they do not support the reduction in funding, this will have a minor impact compared to the increased administrative burden and decreased flexibility encompassed in this bill. 

The Australian Chamber of Commerce and Industry argues that there is no credible evidence to support the notion that investment in emerging markets is of greater benefit than investing in established markets.  It should be up to Australian business to choose markets according to commercial worth rather than at the direction a Canberra based bureaucracy.

Given the success of the EMDG scheme under the current rules, I welcome the Coalition commitment to move to review these measures in the next Parliament.

 

Senator David Fawcett

Liberal Party Senator for South Australia

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