Kevin Hogan (Page, National Party, Shadow Minister for Trade and Tourism) Share this | Link to this | Hansard source

I move:

That this House:

(1) notes:

(a) that estimated budget allocations for the Export Market Development Grants (EMDG) program decreased from $169 million in the financial year 2022-23 to $110 million in the financial year 2025-26;

(b) the current pause between rounds 3 and 4 of the EMDG program means no financial support will be available to businesses in the 2024-25 financial year; and

(c) stakeholder concerns that the Government is considering, through a strategic refocus, removing eligibility for grants under the program for exports to certain markets; and

(2) calls on the Government to reverse its policy intention and ensure that exporters can continue to access the program, regardless of the markets they seek to market and export to.

Export market development grants obviously relate to trade. They support our exporters as we open up to new markets for our products. These grants are to support that. Before I get to the grants specifically, which is what I want to talk about today, I just want to remind this Chamber and the parliament of the fact that one of the crowning achievements of the coalition government, from 2013 to 2022, was the free trade agreements we did during that time. It's not well advertised, not well promoted, especially when people review the coalition period, but, when we came to government in 2013, about 25 per cent of the goods and services that we exported were covered by free trade agreements, and, by the time we left government in 2022, with the bilateral agreements we initiated and the multilateral agreements we did, nearly 80 per cent of goods and services that we exported were covered by free trade agreements. That is obviously great news for all the exporters in our country, of which there are many. The fact that we are an export powerhouse right now is really driving our economy. It's a very important part of our economy, a very important part of our employment.

I wasn't going to bring this up, but I noticed something that was brought up by the government this morning in the Treaties Committee. They want the ISDS provisions within the New Zealand-Australia free trade agreement to be revisited and are looking to remove them. I can tell this chamber and you, Deputy Speaker, that, if we were to revisit the ISDS provisions—we have about 10 of them—with bilateral agreements, some of those agreements would not be done. We can sign up to ISDS provisions very confidently because we have good governance in this country. We won the only challenge that we've ever had through the ISDS provisions, and our sovereignty is not threatened by them. But I am conscious that there are many, especially in the union movement—and we always need to remember this—who are not in support of free trade. They do not believe in it for ideological reasons, and we're seeing that today with the ISDS provision thing through the Treaties Committee.

Let's go to the Export Market Development Grants program. It's very important. I thank the member for Casey, who I think is going to second this motion in a moment. In his previous employment, he was very familiar with this grants program and its importance for business and for exporters from this country. I thank him for that. What is Labor's record on this since getting into government, Deputy Speaker Archer? It may surprise you. I'm going to say it probably doesn't surprise you. In the May 2023 budget the Labor government cut $61 million from this grant program, as one of the first things they did. In fact, the $110 million in the 2025-26 budget is the lowest funding for this grant program since 1980. What is disappointing about this is that these grants are all about helping people to grow our economic pie. This money, if invested wisely, is money that is going to generate more income, more tax collections, more economic growth and more employment in our country.

I also note—and I've spoken to the department and the minister about this—the time line for round 4. The application process will be completed, hopefully, around November, but the first lot of money is not likely to flow from the EMDG program until July 2025. That means that, in the 2024-25 financial year, there will be no money coming out of this grant process. In that financial year of 1 July 2024 to 30 June 2025, there are likely to be no grants that have actually been applied so that people can spend that money, because it looks like that won't be until after the middle of 2025. That is a real penalty. I think it shows that the government doesn't understand the importance of this program.

I also note that they did put it out to have a review into the EMDG program. I have no issue with that. I've seen some of the preliminary decisions and some of the rules that the government tabled last week in the Senate about how this program would work. Some of it looks good. Some of it is looking at the financial sustainability of the companies that get these grants. I applaud the government for looking at that. Obviously we want to give the grants to companies that are financially viable and sustainable, but I am very wary of some of the discretion that has been given to the minister and the fact that this cannot be geographically focused to a small area.

Bridget Archer (Bass, Liberal Party) Share this | Link to this | Hansard source

Is there a seconder for the motion?

Aaron Violi (Casey, Liberal Party) Share this | Link to this | Hansard source

I second the motion and reserve my right to speak.

A division having been called in the House of Representatives—

Sitting suspended from 13:14 to 13:24

Carina Garland (Chisholm, Australian Labor Party) Share this | Link to this | Hansard source

I am so pleased to be part of a government that really does care about our trade relationships. On Wednesday 20 March, the Albanese government tabled in parliament our plans to reform the Export Market Development Grants program, focusing on improving this program for our exporters.

The Export Market Development Grants program is one of the most comprehensive programs of its kind in the world. Our government is committed to supporting Australian businesses to grow and expand both here and overseas. We know businesses that export contribute to our economy in a number of ways, and support higher-paying Australian jobs. Since coming to government, a review has been undertaken of the Export Market Development Grants program, one of the most significant and generous programs of its kind globally. This program is an important source of support for Australian businesses to start, expand and diversify their exports into overseas markets. After extensive business and industry consultation, it was clear that the uncertainty about and declining size of EMDG grants significantly reduced the value of the program for our exporters.

The updated rules will see increased grant sizes so that eligible Australian businesses can access more money to support export market activities. These changes will also allow the Export Market Development Grants program to encourage Australian businesses to diversify their trade by allowing Austrade to identify key markets for grant tiers. Additional changes include improved eligibility requirements so that grants can go to businesses that are ready to start, expand and diversify their exports. This will be in addition to the ability to show applicants what the maximum grant amounts are upfront, giving exporters greater certainty about how much grant funding they will receive if they're successful. Consistent with other government programs, grants will be awarded to eligible businesses in the order in which applications are assessed, with rounds closing as soon as funds are fully allocated. These changes were the result of extensive consultation with business and industry, and will take effect for the next grant round, which is expected to open later this year.

Our government is committed to supporting exporters who contribute to our economy and support high-paying good Australian jobs. Our operational review of the Export Market Development Grants program found there was a need to better balance the level of interest in the Export Market Development Grants with available funds in order to increase grant amounts. Unfortunately, the former government relaxed eligibility criteria so much that when the introduced changes started in 2020-2021, the program fell into disrepair. Those changes meant that the size of grants fell through the floor, almost halving their average value and making the grants less impactful. This meant that the previously successful Export Market Development Grants program stopped delivering, diminishing the value for Australian exporters who relied on it to support their growth and development. We promised at the election to review this important program and to clean up the mess it was left in by the previous government. We've delivered on that promise so that Australian exporters can trust that this program will deliver for them.

Our government knows that taking on the immense challenge of export requires significant capital, patience and, of course, blood, sweat and tears. The former government's changes meant that the grants were not only smaller but that many firms couldn't spend the money they were given. We know trade is a force for good in addressing Australia's current and future challenges. One in four Australian jobs relate to trade and 27 per cent of Australia's economic output is supported by trade. Our government is focused on generating new and diversified trade and investment opportunities for Australian businesses. Trade diversification is a key plank of our government's trade policy agenda, and negotiations have commenced with a number of countries on trade agreements.

As a government, we're committed to strengthening economic ties in the region, as demonstrated by our efforts with ASEAN in Melbourne earlier this month. I'm really proud to represent a government that's committed to supporting our export industry.

Aaron Violi (Casey, Liberal Party) Share this | Link to this | Hansard source

Let's be very clear: they can talk a big game, but this government is not delivering for exporters in our country. There's no money for this grant program in the 2024-25 financial year and they've cut $61 million out of the program since they came to government. And to show they don't understand business, the economy or how this country works, they've now decided that Austrade, a bureaucracy, is the best place to tell businesses how to operate and where to export. I've spent 10 years working in food manufacturing, including exporting into Asia, and no-one knows better than a company where they need to export to, where their markets are and where their opportunities are—not a bureaucracy. It shows that this government is out of touch at the time of a cost-of-living crisis, when business is struggling more than ever. They continue to make the wrong decisions and make it harder and harder for businesses to operate.

Wineries are a core part of my community and they need these export market grants to extend into new areas.

They're frustrated, and they've been reaching out to me—

Bridget Archer (Bass, Liberal Party) Share this | Link to this | Hansard source

Order! It being 1.30 pm, the debate is interrupted. The debate is adjourned and the resumption of debate will be made an order of the day for the next sitting.

Sitting suspended from 13:30 to 16 : 0 6