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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.