Anger over chaotic overhaul of Austrade export grant scheme
A revamp of a federal grant scheme for Australian exporters faces the threat of legal action over claims the new system represents a breach of ‘procedural fairness’.
Business
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A major overhaul of a federal grant scheme for Australian exporters has come under fire, with the threat of legal action over claims the new system represents a breach of “procedural fairness” and undermines the laws governing the program.
Austrade’s Export Market Development Grant, which has been supporting Australian exporters for nearly 50 years, was revamped this year, moving to a ‘‘first-in, first-served’’ model that rewarded eligible businesses that were quickest to apply.
Changes to the $209m program were designed to increase average grant sizes, but resulted in a flood of applications for ‘‘Tier 2’’ of the program – a $62m pool set aside for businesses that planned to spend the grant on promotional activities within their existing export markets.
The funding was exhausted in less than four hours due to the rush on Austrade’s online application portal, leaving applicants in the dark on the status of their requests, and fearing they may miss out on crucial funding even if they submitted their applications before the portal closed. Criticism has also been aimed at the design of the scheme, given applications for a further $147m set aside for first-time exporters, exporters expanding into new markets and industry representative bodies remain open almost four weeks after applications opened.
Grants Pro director Ray Radice, a former Austrade employee who now assists businesses seeking government grants, described the changes as an “unmitigated disaster, transforming Australia’s longest running and highly successful program into a chaotic scramble that feels more like trying to get Taylor Swift tickets than applying for government funding”.
“Austrade’s attempt to improve the process backfired spectacularly, leaving businesses frustrated, delayed, and fearing they’ll miss out on critical funding,” he said.
“This change forced exporters applying for Tier 2 to compete in a race to submit their applications among the first 620, or risk losing out on critical funding.
“The likelihood of receiving a grant depended entirely on how quickly businesses could access the system and complete their applications. A grants program should prioritise eligible businesses, not devolve into a chaotic rush where applicants face unnecessary barriers to simply lodge their forms.”
Under the EMDG changes, the first 620 eligible applicants for Tier 2 funding are expected to receive up to $100,000 in matched funding to go towards promotional activities over the next two financial years.
However, Mr Radice said it was likely that many more eligible businesses had submitted their applications before the portal was closed off by Austrade – meaning some would have their applications rejected simply because they were not among the first 620 to be assessed.
He is calling on Trade Minister Don Farrell to intervene and ensure all valid applications submitted before the deadline are fully funded, either by diverting funds from other undersubscribed tiers, or by increasing funding for the program. Lawyers have also been engaged, and have written to Austrade’s acting chief executive Daniel Boyer, claiming a failure to assess all valid applications submitted and accepted by Austrade while the portal was open would constitute “a breach of procedural fairness and the legislative framework governing the EMDG program”.
The letter also notes that technical issues with the online portal were widely reported, putting applicants experiencing delays at a significant disadvantage.
Untamed Escapes owner Craig Haslam runs guided tours across South Australia, Western Australia and the Northern Territory, and previously secured $25,000 through the EMDG program in the immediate aftermath of Covid-19. While having successfully submitted an application for Tier 2 funding as part of the latest round, he said he feared he may miss out on the funding needed to promote his business in overseas markets amid a slow recovery in travel to Australia.
“I have put in for two years of funding under a Tier 2, which is to help me get overseas, meet and get in front of the travel agents, and get them to start to consider my product when the customers are in front of them coming to Australia,” he said.
“I’m hoping that because I’ve at least made the timeline, there is an opportunity, but there’s a huge amount of uncertainty about it. “
“They came out with this sort of cut-throat type approach, get in first or don’t get in. The system was in overload because at a certain time everyone logs on, everyone’s trying to do it – it’s super stressful … and while I’ve got it in, I don’t know if it’s been successful. I still have no idea. It wasn’t a great experience.”
Mr Farrell’s office referred enquiries to Austrade, which declined to comment on questions about how it would respond to concerns about the changes to the EMDG.
Originally published as Anger over chaotic overhaul of Austrade export grant scheme
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