Exporters sold down the river in Budget
18th May, 2010
Thousands of valued Australian exporters have been short-changed by a big taxing and all talk Rudd Labor Budget, Shadow Trade Minister Warren Truss said today.Those who promote their wares overseas will take a $30 million hit this year and $80 million next year. Meanwhile, 18 of the nation’s 48 TradeStart offices will close, many in regional areas.
And of course, every mining company will be hit by the Government’s proposed $12 billion super tax on profits, which already has companies deferring or re-assessing investments that are crucial for export trade.
“The Budget demonstrates the lack of a strategic, long-term approach from the Rudd Government, and is full of knee jerk decisions based on its short-term survival,” Mr Truss said.
“The Budget has cut funding for the Export Market Development Grants scheme by $50 million, even though the fund is already at least $30 million short in 2009-10.
“The EMDG scheme will now be at least $80 million short next financial year. As a result exporters will only be able to claim a refund of two-thirds of the money they have already spent in good faith on export promotion.
“After spending years lecturing the Coalition from Opposition, the Australian Labor Party has deserted exporters just when they need assistance the most.
“Exporters often engaged in this promotion based on what should have been a firm understanding of receiving support for their efforts. They are furious they have been misled by the Trade Minister and Treasurer.
TradeStart has done a wonderful job in assisting small and medium sized businesses to commence exporting and maximise their potential. Since 2002, more than 2,000 enterprises have been helped to achieve export success worth $750 million.
“But the Rudd Government buried in the Budget papers that it was slashing TradeStart funding from $5.8 million to $3.6 million per year.
“It has now been revealed that offices in Bega, Orange, Tweed Heads, Alice Springs, Mackay, Port Lincoln, Albany, Broome, Carnavon, Geraldton, Hobart and Canberra – among others - will close.”
The Rudd Government is also yet to respond to the Mortimer Review of Export Policies and Programs, released in September 2008. After initially promising a response by the end of 2008, that timeline blew out to the 2009 Budget.
“There is still no sign of any response from Mr Crean, quite possibly because all his actions to date have directly contradicted David Mortimer’s findings,” Mr Truss said.
