1997

THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA

HOUSE OF REPRESENTATIVES

EXPORT MARKET DEVELOPMENT GRANTS (REPEAL AND CONSEQUENTIAL PROVISIONS) BILL 1997

EXPLANATORY MEMORANDUM

(Circulated by authority of the Minister for Trade, The Hon Tim Fischer)

80626 CAt. No. 96 5917 X ISBN 0644 496991

EXPORT MARKET DEVELOPMENT GRANTS (REPEAL AND CONSEQUENTIAL PROVISIONS) BILL 1997

PURPOSE AND OUTLINE OF THE BILL

The purpose of this bill is to repeal the Export Market Development Grants Act 1974 (EMDG Act 1974), and to deal with consequential matters arising from the repeal of that Act and the enactment of the Export Market Development Grants Act 1997 (new Act).

To ensure the protection of the rights of certain stakeholders and for the continued integrity of the EMDG scheme, it is necessary that certain matters and situations not be affected by the repeal of the EMDG Act 1974.  This bill preserves the status of approved body, approved joint venture and approved trading house applications, and various related guidelines; preserves first time claimant registration and guidelines with respect to the grants entry test; preserves "decision making principles" in respect of continuing business considerations under the scheme, and prevents first time applicants from claiming expenses in respect of previously ineligible services.  Schedule 1 of the bill repeals the EMDG Act 1974 and ensures the finalisation of pending claim assessments and grant payments.  This schedule ensures also that pending prosecutions may continue and monies owing to Austrade may be pursued.  Schedule 2 amends the Australian Trade Commission Act 1985 to reflect the repeal of the EMDG Act 1974 and the enactment of the new Act.

FINANCIAL IMPACT

This bill has no financial impact.

ABBREVIATIONS

The following abbreviations are used in this explanatory memorandum:

EMDG Act 1974;	Export Market Development Grants Act 1974.
new Act;	Export Market Development Grants Act 1997.
EMDG scheme;	any scheme of financial assistance instituted under the Export Market Development Grants Act 1974, or devolved legislation.
Austrade;	Australian Trade Commission.

NOTES ON CLAUSES

PART 1 - PRELIMINARY

Clause 1	The Act may be cited as the Export Market Development Grants (Repeal and Consequential Provisions) Act 1997.

Clause 2	The Act Commences 1 July 1997.  Note that the Act has application from 1 July 1996.  The Export Market Development Grants Act 1974 is immediately followed by the Export Market Development Grants Act 1997 which has application from 1 July 1996.  This bill repeals the  Export Market Development Grants Act 1974, and provides for transitional measures and consequential changes necessary for the ongoing protection of stakeholders and the integrity of the EMDG scheme.

PART 2 - REPEAL AND AMENDMENTS

Clause 3	Establishes that this bill amends or repeals other Acts in accordance with the details specified in schedules under this bill.

PART 3 - TRANSITIONAL PROVISIONS

Clause 4	Establishes that reference to "new Act" in this bill is reference to the  Export Market Development Grants Act 1997.

Clause 5	The EMDG Act 1974 gave Austrade the power to approve certain 'persons' as applicants where they otherwise would not be eligible for consideration under the scheme.  These 'special persons' are known as approved body, approved trading house, and approved joint venture.  This bill provides that approval of these organisations does not expire with the enactment of the new Act, but continues on the terms and conditions applicable under the EMDG Act 1974, unless varied or cancelled under the new Act.

Clause 6	This clause ensures that guidelines established under the EMDG Act 1974 in respect of approved trading house continue to have effect under the new Act.  The guidelines may be varied or revoked under the new Act.

Clause 7	This clause relates to outstanding applications for approved body, approved joint venture and approved trading house status.  Any unresolved application continues to be an application under the new Act, and any question asked by Austrade and answer given in relation to an application under the EMDG Act 1974, are valid under the new Act.

Clause 8	This clause deals with the cancellation of approved trading house and approved joint venture status.  Under the EMDG Act 1974, Austrade is required to invite a written response within 30 days from any 'approved person' where Austrade is considering cancellation of approval.  Any invitation where the 30 days expires after 1 July 1997 (the date of application of the new Act) is taken to be an invitation under the new Act.  An submission received before 1 July 1997 is taken to be a submission under the new Act.

Clause 9	Under the EMDG Act 1974, multiple membership of approved joint venture may be limited.  The maximum number of approved joint venture of which a person may be a member at any one time is set by ministerial guideline.  The limit set by guideline under the EMDG Act 1974 continues to be the limit under the new Act, unless varied or revoked under the new Act.

Clause 10	First time applicants under the EMDG scheme are required, in the grant year, to register their intention to lodge an application for grant in respect of that grant year.  A registration under the EMDG Act 1974 is taken to be a registration under the new Act.  An unprocessed application seeking registration under the EMDG Act 1974 is taken to be an application under the new Act.

Clause 11	First time applicants are required to pass a grants entry test.  This test is formulated by Austrade and established by written determination.  The determination under the EMDG Act 1974 continues to have effect under the new Act, unless varied or revoked under the new Act.

Clause 12	Where, before 1 July 1997, Austrade has not decided whether a person who has taken the grants entry test, has passed that test, the person is understood to have taken the test for the purposes of the new Act.  Any request by Austrade for information, the receipt of which may be after 1 July 1997, and any information given to Austrade before 1 July 1997, is taken to be a request or submission under the new Act.

Clause 13	Unless Austrade gives an exemption, the EMDG Act 1974 assumes that a business relevant to an application for grant is a continuation of a previous business.  This has bearing upon the size grant paid, or if any grant is payable, as the new owner may inherit the EMDG history of the previous owner.  In making a decision as to whether to give an exemption, Austrade must have regard to any "decision making principles" it has formulated.  Unless varied or revoked under the new Act, the "decision making principles" under the EMDG Act 1974 have application under the new Act.

Clause 14	Under the new Act all external services are eligible.  Under the EMDG Act 1974 external services were prescribed by regulation, and some services were not included.  Under the EMDG Act 1974 and the new Act, a first time applicant for grant may add to the expenses of the grant year, the expenses of the year immediately preceding the grant year.  For the purposes of the new Act, any claimed expenses for the year prior to the 1996/97 grant year in respect of services that were not eligible under the EMDG Act 1974, are ineligible.

SCHEDULE 1 - REPEAL

Export Market Development Grants Act 1974

Item 1	The Export Market Development Grants Act 1974 is repealed.

Item 2	The provisions of the EMDG Act 1974 continue to apply to a person where the following circumstances exist immediately before 1 July 1997:

	• claim for grant has not been finalised (a claim is not finalised where; Austrade has not made a determination of entitlement to grant, or Austrade's determination is or may be subject to review by the Administrative Appeals Tribunal, or the Tribunal's or Federal Court's decision is or may be the subject of appeal),
	• a grant was payable but had not been paid,
	• the person was liable to repay monies because of their conviction of an offence relating to them knowingly obtaining or attempting to obtain a grant that is not payable, or obtained a grant by false or misleading statement or document,
	• the person was liable to prosecution or had pending a prosecution for an offence against the EMDG Act 1974.

	The provisions of the EMDG Act 1974 continue to apply also to a person who would, because of the application of the continuing business provisions of that Act, have been allowed by Austrade to submit a claim for grant after the prescribed closing date for receipt of applications.  All of the provisions under this clause are limited to grant years not later than the 1995/96 grant year.

SCHEDULE 2 - AMENDMENT OF THE AUSTRALIAN TRADE COMMISSION ACT 1985

Items 1	Schedule 2 simply substitutes all reference to the  Export Market Development 
to 17	Grants Act 1974 with a reference to the new Act, the Export Market Development Grants Act 1997, except where the EMDG Act 1974 must apply as described under item 2 of schedule 1 of this bill.