Both Governments and the private sector have a major part to play in boosting Victoria’s export growth, says VECCI.

According to VECCI Chief Executive Officer Neil Coulson, this is the central finding of VECCI’s Export TaskForce, chaired by Melbourne Markets Authority Chair, Neil Lowe, which will report its findings in detail at the Victoria Summit at Parliament House in Melbourne on 8 November 2005.

“Opportunities in the trade arena are growing each year. Free Trade Agreements have been signed with the United States, Singapore and Thailand, and FTAs or closer partnerships are being considered with China, India, Japan, ASEAN and the United Arab Emirates”, says Mr Coulson.

“Despite a greater focus by the Federal and Victorian Governments on exports, there is still much to be done to take advantage of world trade growth, which is projected to accelerate over the next two decades.

“ABS figures indicate that Australia has only 25,000 exporters, or around FOUR percent of the one million or so businesses in Australia. This is below the rate of comparable economies. Breaking these figures down further, only four percent of SMEs are exporting, whereas 33 percent of large businesses (200+ employees) are doing so.

“Growing shortages in skilled and unskilled labour are also likely to impact on our capacity to deliver a better trade performance, and our private sector Research and Development spend is below world standards, tracking at around half the OECD average.

“The lack of an export culture and the absence of a team approach among different levels of Government and different State jurisdictions, and within the private sector, is also an issue of concern.

As a consequence, the TaskForce has identified the way forward, including:

• Encouraging the private sector to take an increased role in meeting the export challenge by tapping into existing expertise – industry carries out nearly all export activity and there is scope for a greater role on the part of industry in boosting our export performance, with Government support.

This includes, at a practical level, fostering a program designed to harness participation and provide accreditation of honorary trade representatives for Victoria, drawn from Australians who regularly do business overseas and fostering export partnerships between larger businesses and SMEs to encourage SMEs to overcome knowledge gaps and build vital networks in overseas countries

• Sharpening the focus of Government efforts to boost exports.  This includes actions to lower business costs and raise innovation.  It also needs to involve the provision of improved information on emerging market opportunities and a refocussing of programs to foster the value of exports as well as the number of exporters.  As an example, the EMDG scheme should be indexed to inflation and a 50 percent increase in the daily allowances available to firms making overseas visits should be implemented

• Harnessing the education and training system to boost the supply of skills and drive export growth

• Encouraging closer relationships between the higher education sector and industry to foster research and development and its successful commercialization in global markets.

Recognising today’s global realities mean we must compete more on non-price dimensions, with innovation providing a competitive edge.  The Government can meaningfully assist the efforts of industry by restoring the Research and Development (R&D) Tax Concession to 150 per cent by 1 July 2006.

·         Improving the taxation and regulatory climate for exporters facing fierce competition from trading partners with less onerous taxation and regulatory regimes.

·         Leveraging more effectively off the expertise and skills expatriates can provide in promoting Australian trade and investment.

·         Encouraging a Team Australia approach in terms of building collaborative supply chains offshore.

“The Commonwealth and Victorian Governments have set ambitious targets for exporters to achieve, for example the Victorian Government’s target of boosting exports to $30 billion by 2010 – the TaskForce’s recommendations, taken together, will assist in Victoria in reaching those targets” says Mr Coulson.