Export grants show benefit

Press, 22 May 1978, Page 7

Export grants show benefit

Parliamentary reporter The accumulated value of grants made since the services export development grants scheme began at the end of 1974 has reached SIM, says the Minister > of, Overseas Trade (Mr Taiboys). According, to the. annual report of the Services Export Development Grants Advisory Committee, tabled in Parliament, the value of funds to accrue to the New Zealand economy from related contracts secured exceeds $2.5M. The services export development grants scheme is intended to help persons or corporations, established and working in New Zealand, that seek prospects for the supply of professional and technical services for projects overseas. Grants of up to

40 per cent of eligible expenses are-; authorised out of money Appropriated by Parliament for the purpose. Already the scheme was working profitably 'although the absolute benefit, in terms of total foreign exchange accruing to the economy as a result of a particular grant-assisted tender, was not readily apparent, said Mr Taiboys. In some instances, where a bid failed, the tenderer quickly secured another contract in the same region. In other cases, the first bid succeeded and a further contract, or contracts, in the same territory followed soon afterwards. “It seems quite likely that many contracts for which tenders have been, or are about to be made, will not come to early fruition,” Mr Taiboys said.