New scheme demands intensive market research

Press, 31 October 1979, Page 25

New scheme demands intensive market research

Intensive research into mare ling New Zealand’s products and services overseas is the main emphasis of the Government's new grants scheme now being offered to exporters. The export programme grants scheme announced in this year’s Budget provides for market development grants at a rate of 64 per cent of a company’s budgeted eligible promotional expenditure. The Trade Services director for the Department of Trade and Industry (Mr G. Fox) says that although the scheme does not take effect until April 1. the department is hoping to receive applications by early December for target market status — the first of a tostage procedure in applying for a grant. In the first stage, an industry group or company with a net export turnover above $lOO,OOO will be required to show export potential for the particular goods, in the selected target markets. In the second stage, after

target markets ha\e been designated, individual companies will need to indicate their ability to supply the ■ approved target market, and ; to submit a detailed market development programme. : "The time for receiving i submissions for target mar- . ket and market development : programmes will be flexible • in this first year of the ■ scheme’s operation," said Mr I Fox. "However. early application for target market t(Status will enable this to be •(designated in time for comi panies to apply for grants - available from April 1. "All district offices of the ■ Department of Trade and In- ■ dustry are now issuing ext planatory notes and application forms for the scheme. ji and staff are on hand to dis■cuss details. "At the same time, the department is reminding ■ exporters of the terminating ■(dates for existing incentives. ■as set out in the Income Tax • Amendment Act, 1979," Mr Fox said. "The export promotion r taxation incentive terminates,

on March 31 ano is to r>e replaced by the recently-an-nounced export market development taxation incentive. "The new markets increased export taxation in-, centive terminates on March | 31, 1981. However, no further new market status applications will be received by the department after December 31. Approvals gained before. March 31 will continue to apply — provided the company has exported to the approved new market on or before March 31, 1981. “The new market development grants scheme ' terminates on March 31 and is to be replaced by the export programme grants scheme. Approvals given under the new market grants scheme before this date will run their normal course until March 31. 1983. "The services export development grant scheme also terminates on March 31 and will be replaced by the export programme grants scheme. For services exporters who have had prior ap-

proval. the grants will run their normal course until March 31. 1983." sa:d Mr Fox.