AusBiotech opposes changes to export grants scheme

AusBiotech has joined several industry groups to express concern over the Export Market Development Grants (EMDG) Amendment Bill.

The Bill will redirect export market promotion funding from the USA/Canada, European Union and United Kingdom markets to the East Asian area, with grants for years six, seven and eight being abolished for the all applicants except approved bodies.

In addition, event providers will be completely removed from the EMDG scheme.

Of considerable concern to AusBiotech is that there is no clear evidence that a market impact analysis has occurred to inform these changes, particularly how small and medium-sized business will be affected.

Acting Chief Executive Officer of AusBiotech Glenn Cross said, while the changes to the Act will enable grants to be paid quicker, many small companies rely heavily on grant funding through the EMDG scheme to access key global markets.

“Over 90% of Australian biotech and medtech export markets reside in the US, Canada and the European Union,” he said.

“Should this Bill pass, we foresee considerable and possibly grave impact on our industry members.

“Established markets are just as important as emerging ones, and it should be up to the individual business where they see fit to establish and build their export markets - it is not the role of government to dictate, nor to discriminate against businesses working in particular markets.”

The Opposition has expressed ‘grave reservations’ over the amendments and, while they did not oppose it in the lower house, have agreed to review the changes should they be elected to government. The Bill is to be debated in the federal government’s senate in mid-June; AusBiotech will be communicating with all senators on behalf of the industry regarding concerns.

Further information about the EMDG Amendment Bill can be found here. For more, contact Alina Tooley at atooley@ausbiotech.org or 03 9828 1400.