RESTRICTEDWORLD TRADE
ORGANIZATIONG/SCM/Q2/AUS/17
13 October 2000
(00-4243)
Committee on Subsidies
and Countervailing MeasuresOriginal:  English
SUBSIDIES
Replies to Questions from the EUROPEAN COMMUNITY1
Regarding the New and Full Notification of AUSTRALIA2
The following communication, dated 13 October 2000, has been received from the Permanent
Mission of Australia.
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Question
We have been informed that the Australian bo ok production industry is able to access a
Government programme work of $A 48 million, wh ich is designed to assist the Australian book
industry become more competitive and meet the challenges of the global market-place during a
four year period.
More precisely, the "Book Production-Enhanced Printing Industry Competitiveness
Scheme" (called EPICS), will involve granting up to $A 2 million a year on a competitive basis
for industry projects that encourage innovation, business development and skills formation.
In its notification to the WTO pursuant to Article XVI:1 of the GATT 1994 and
Article 25 of the SCM Agreement (document G/SCM/N/38/AUS-G/SCM/N/48/AUS dated
11 May 2000), Australia reported that a new Pr inting Industry Competitiveness Scheme had
been introduced and would come into effect on 1 January 1999 for a four year period.  Thescheme aims to improve the competitiveness of  the Australian book industry and reduce the
effect of negative assistance on the industry by compensating book printers for the cost impact
of duty on paper inputs.  The level of the subsid y is 4 per cent of the paper purchase price for all
paper used in the production of eligible books.
According to Article 25.8 of the SCM Ag reement mentioned above, the European
Community would like to know what are the links between the $A 48 million EPICS
programme and the Printing Industry Competitiveness Scheme notified on 11 May 2000.  The
European Community request the Australia n Government to provide more detailed
information on the EPICS scheme as soon as possible.
                                                     
1 G/SCM/Q2/AUS/16
2 G/SCM/N/38/AUS-G/SCM/N/48/AUSG/SCM/Q2/AUS/17
Page 2
Reply
The following notification responds to the questions posed by the European Community in
document G/SCM/Q2/AUS/16 dated 26 September 2000.
The Book Production - Enhanced Printing Industry Competitiveness Scheme (EPICS)
programme commenced on 1 July 2000 and will be included in Australia's next updating notification.
We provide the following in the questi onnaire format as set down in G/SCM/6.
There is no linkage between the EPICS programme and the Printing Industry Competitiveness
Scheme which was notified in document G/ SCM/N/38/AUS-G/SCM/N/48/AUS dated 11 May 2000.
The EPICS is a separate programme which caters for projects from individual firms pursuingcommercial interests as well as for projects wi th industry-wide benefits.  However, the overall
government assistance provided to firms, including under the Printing Industry Competitiveness
Scheme, is taken into account when assessing the level of assistance to be provided to a particular
firm under EPICS.
1. Title of the subsidy
 
 Book Production - Enhanced Printing Industry Competitiveness Scheme (EPICS) grants
 
2. Period covered by the notification
 
 The scheme commenced on 1 July 2000.
 
3. Policy objective and/or purpose of subsidy
 
 The scheme is designed to encourage the development of the Australian book production
industry by providing grants that encourage innovation, business development and skills formation.
 
4. Background and authority for the subsidy
 
 The Appropriation (Supplementary Measures) Act (No.1) 1999 enacted in November 1999
provides authority for the scheme.
 
5. Form of the subsidy
 
 Under the scheme, grants will be awarded competitively on the basis of eligibility and merit
criteria of projects which best meet the objectives of the scheme and comply with the eligibilitycriteria.
 
6. To whom the funding is provided
 
 Funding is available to firms involved in the book production process - approximately 70
book printing firms may qualify for assistance, with other firms in the supply/value chain benefiting
from participation in the projects awarded grants under the scheme.
 
7. Level of subsidy per unit
 
 This is a new program and no funding has been awarded to date.  Grants will not be
dependent on activity or production levels.
 G/SCM/Q2/AUS/17
Page 3
8. Duration
 
 The scheme will operate from July 2000 and is scheduled to terminate on 30 June 2004.
 
9. Trade effects
Not known.
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