WORLD TRADE  
ORGANIZATION  G/SCM/Q2/AUS/37 
1 April 2008 
 (08-1443) 
Committee on Subsidies and 
Countervailing Measures Original:   English 
 
 
 
SUBSIDIES  
 
Replies to Questions Posed by the UNITED STATES1 Regarding the  
New and Full Notification of AUSTRALIA2 
 
  The following communication, dated 28 March 2008, is being circulated at the request of the Delegation of Australia.    
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FEDERAL PROGRAMS 
 I. Forestry 
 
Tasmanian Forest Industry Development Programme 
 Tasmanian Country Sawm ills Assistance Programme 
 Tasmanian Softwood Industr y Development Programme 
 
 According to the notification, these programs provide grants to eligible enterprises in 
the development of a sustainable, efficient and value-adding native timber industry in Tasmania, with projects assessed on a case-by-case basis under government-approved 
guidelines.   
 
Question 1 
 
Q.1(a) What are the specific criteria for elig ibility for receiving benefits under each of these 
programs?   
 
Reply
 
 
Tasmanian Forest Industry Development Program 
 
Individual businesses and organizations invol ved in the Tasmanian native timber industry 
were eligible to apply for the program.  Applicants must have:   
 
• secured long-term access to a sufficient qua ntity and quality of forest products to 
undertake the proposal;  or 
• been engaged in the harvest and/or haulag e of those products under contract;  or 
                                                      
1 G/SCM/Q2/AUS/32.   
2 G/SCM/N/155/AUS.   G/SCM/Q2/AUS/37 
Page 2  
 
  • purchased wood from a wood supply contract for native forest or hardwood plantation 
wood.   
  Applicants were required to show that:    
• their project was industry and market-f ocused and commercially viable;  and 
• their business was financially sound and capable  of providing or attracting the necessary 
funds to complete the proposed project.   
  Applicants who were not participating in the industry at the time of application were required 
to demonstrate:   
 
• the existence of a secure agreement for resource supply as evidence of sufficient 
resources to undertake the proposal and participate in the industry;   
• their business had capable management;  and 
• that they were contributing to the industry's competitiveness.   
 
Tasmanian Country Sawmills Assistance Program 
 
To be eligible, applicants must have been  country sawmillers involved in the milling of 
hardwood or softwood sawlogs.  Typical country saw mills employ fewer than 30 people and produce 
mainly green sawn timber, which is sold to  larger mills for further processing.   
  To qualify for assistance, applicants  were required to show that:   
 
• their project was industry and market-focused and commercially viable;   
• their business was financially sound and capab le of providing or attracting the funds 
required to complete the proposed project;   
• they had secure long-term access to a sufficient quantity and quality of forest products 
to undertake the proposal - for example through a timber supply contract or a direct link 
to a timber supply contract from public or private forest;   
• their business had capable management;  and 
• they were contributing to the industry's competitiveness.   
 
Tasmanian Softwood Industry Development Program 
  To be eligible for the program , applicants were required to be  participating, or planning to 
participate at the time of application, in harv esting, transporting or pr ocessing exotic softwood 
products.     To qualify for the program, applicants  were required to show that:   
 
• their project was industry and market-focused and commercially viable;   
• their business was financially sound and capable  of providing or attracting the necessary 
funds to complete the proposed project;   
• they had secure access to a sufficient quantity and quality of forest products to undertake 
the proposal - for example through a timber supply contract or a direct link to a timber supply contract;   
• the business had strong, capable management;  and 
• they were committed to the industry's competitiveness.    G/SCM/Q2/AUS/37 
 Page 3 
 
 
  Q.1(b) Please explain what "value-adding" produc ts or markets are being specifically targeted 
for support under these programs?   
 
Reply  
 
Although the Tasmanian Forest Industry Deve lopment Program, the Tasmanian Country 
Sawmills Assistance Program and the Tasmania n Softwood Industry Development Program each 
carry their own individual objectives, all three programs are designed to assist the continued development of a value-adding native timber indus try in Tasmania.  As such, the programs do not 
specifically target one product or market over another.   
 
The Tasmanian Forest Industry Development Program aims to support initiatives that assist 
the industry in improving sawlog utilisation rates, developing new products that attract investment, 
creating new employment opportunities or secure ex isting jobs and upgrading harvesting and haulage 
equipment.   
 
The Tasmanian Country Sawmills Assistance Program aims to support initiatives that assist 
the industry adjusting to changes in timber resources .  This includes reducing reliance on large old 
growth logs, creating new empl oyment opportunities or securing existing jobs and promoting a 
sustainable forest and timber industry in Tasmania  which is efficient, environmentally sound and 
competitive.   
 
The Tasmanian Softwood Industry Development Program aims to support initiatives within 
the Tasmanian softwood industry to invest in envi ronmentally-friendly best practices.  This includes 
modernization of equipment, adoption of new 
technology, training for mill workers and harvesting 
contractors and updating existing transport links.   
 
II. Innovation 
 
Commercial Ready Plus 
 
This program provides matching grants in support of emerging companies and spin-offs 
from public sector research organizations, for R&D and early stage commercialization, with 
funds awarded based on project eligibility and merit criteria.   
 
Question 2 
 
Q.2(a) What are the specific criteria for eligib ility for receiving benefits under this program?   
 
Reply  
 
 To be eligible for Commercial Ready Plus, an applicant must:   
 
• be an incorporated tax-paying company or an  individual willing to become incorporated 
under the Corporations Act 2001 ;   
• have, or be part of a group that has, an annual turnover of less than $100 million in each 
of the three financial years prior to the application (note:  the group turnover limit may not apply);   
• be able to demonstrate that it will match the grant provided on a dollar-for-dollar basis 
over the life of the project;  and 
• be able to demonstrate that it has access to, or the beneficial use of, any intellectual 
property necessary to carry out and commercialise the proposed project.   G/SCM/Q2/AUS/37 
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  Eligible applications will be assessed against th e following five, equally weighted, criteria:   
 
• management capability of the applicant;   
• commercial potential of the project;   
• technical strength of the project, and the t echnical capability and resources available to 
the applicant;   
• extent to which the project is likel y to provide national benefits;  and 
• need for funding.   
 Q.2(b) What particular markets or product se ctors are being targeted for support under the 
program?   
 
Reply
 
 
Commercial Ready Plus does not target particular markets or product sectors.   
  
III. Invest Australia 
 
Innovation and Investment Fund for South Australia 
 
Under this program, 10 projects in a num ber of sectors have been approved for 
matching grants in support of investment in new or additional capacity toward creating new 
jobs in South Australia, particularly in the Adel aide metropolitan area.  The Notification states 
that the maximum grant amount was set at A$5 million, "except in special circumstances".   
 
Question 3 
 
Q.3(a) What projects and/or sectors have b een approved for funding under this program?   
 
Reply
 
 
Projects approved for funding under the progr am came from the advanced manufacturing, 
biotechnology, engineering and manufacturing sectors.    
Q.3(b) Were any projects awarded more than the maximum amount?  Please specify the actual 
amounts and the "special circumstances" for the award.    
Reply
 
 
No projects were awarded more than the maximum grant amount.   
 
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