WORLD TRADE  
ORGANIZATION  G/SCM/Q2/AUS/41 
30 March 2010 
 (10-1715) 
Committee on Subsidies and 
Countervailing Measures Original:   English 
 
 
 
SUBSIDIES  
 
Replies to Questions Posed by the SEPARATE CUSTOMS TERRITORY OF  
TAIWAN, PENGHU, KINMEN AND MATSU1 Regarding the  
New and Full Notification of AUSTRALIA2 
   The following communication, dated 25 March 2010, is being circulated at the request of the Delegation of Australia.   
 
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Question 1 
 
 The eligibility of applicants for receiving the grant.    Reply
 
  The lead organisation applying for a grant must be:    
• a private company;  
• a university;  or  
• a research institute. 
  All other organisations and individuals are free to partner with a lead organisation to obtain 
funding .   
  All applications must be endorsed by the lead organisation, on behalf of all parties, who can 
verify the commitment of all matching funds to the proposed project and who is authorised to enter 
into a formal agreement with the St ate.  The application must be signed off by the head of the lead 
organisation.  This may be the CEO of a private company, the Deputy Vice Chancellor of Research of 
a University or the Director of a Research Institute.    
 The total research and development cost of pr ojects must be at least $500,000.  The funding 
amount applicants seek under the programme must no t exceed 50 per cent of the total research and 
development cost;  the balance to be made up of matching cash and in-kind contributions towards the 
project from other sources.  Cash contributions must make up at least 20 per cent of the total research and development cost.    
                                                     
 
1 G/SCM/Q2/AUS/38.   
2 G/SCM/N/186/AUS.   G/SCM/Q2/AUS/41 
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   Contributions from other sources (including in -kind) must clearly and demonstrably be 
dedicated to the project and must be auditable.   Applicants are encouraged to provide higher 
proportions than $1 to $1 (i.e. more than 50 per cent) and greater contributions of cash than in-kind.   
 Question 2  
 
 The criteria used to determine whether an  applicant could receive the grant.   
 
Reply
 
 
 An applicant must demonstrate that it would:   
 
• coordinate existing expertise to create a criti cal mass that enhances and leverages existing 
R&D capabilities;   
• utilise key personnel who have re levant expertise and a track record for delivery of the 
defined outcomes/achievements;   
• not duplicate the expertise or equipment available elsewhere;   
• ensure that funding is not used for infrastructure;   
• reduce the technical risk of the technology;  and  
• provide an all-encompassing research and development programme that addresses all 
important issues associated with the technology co ntained in the application.  For example, a 
genuinely "sustainable" energy technology w ill not only take into account greenhouse issues 
but also other key environmental, economic and social issues.   
  Applications must clearly address the following mandatory criteria:    
• Projects address an identified market need.   
• Projects clearly define outcomes/achievements to be delivered over time.  These outcomes 
can be direct and/or spill-over benefits.   
• Strong demonstration that the existing sustaina ble energy research base is coordinated and 
creates a critical mass.   
• Key personnel have relevant expertise and a track record for delivery of the defined 
outcomes/achievements.   
• Roles, responsibilities and time commitments for key project personnel are clearly defined.  
• Demonstration of the economic and 'public good'  benefit to Victoria and how the project's 
outcomes will increase Victoria's competitiveness and national and international standing.   
• Demonstration that the proposed technology has the potential to reduce greenhouse gas 
emissions and/or emissions of other pollutant s compared with existing technologies, without 
causing any significant impacts to other segments of the environment.   
• Demonstration of substantial support to match Victorian Gove rnment funding with finance 
from other sources (industry, other Federal and State Government agencies, philanthropic 
trusts and private sector funds).   
• Demonstration of previous experience in management and reporting on the delivery of 
information and evaluation of measurable outcomes.   
• Identification of potential barriers and/or risks to project success and contingencies to deal 
with these.   
 
 Applicants are also invited to address these desirable criteria:    
• Strong collaboration that demonstrates the more efficient use of science and technology 
knowledge and equipment for industry-wide benefit.    G/SCM/Q2/AUS/41 
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  • Demonstration that detailed consideration has b een given to identify the possible pathways by 
which the proposal would subse quently progress to a commerc ial scale, the main issues 
(including economic, logistic and technical) th at would need to be addressed for this to 
happen, and the likely time frame in which this would occur.   
• Demonstration that appropriate arrangement s (e.g. a memorandum of understanding) have 
been established between the proposal partners  to clearly establish how they will work 
together (including in relation to sharing of intellectual property and valuation of in-kind 
contributions).   
• Demonstration of hands-on training of resear chers – thus increasing the pool of personnel 
available to support sustainable energy industries and companies.   
• Demonstration of collaboration and engagement  with small to medium enterprises.   
• Demonstration of linkages across sectors and disciplines that foster  convergence and cross-
fertilisation of ideas to meet an identified market problem or need.     
• Demonstration of collaboration on a national and/or international scale. 
 
 Assessment of these criteria may be used to ra nk applicants who have satisfied the mandatory 
criteria.    
Question 3  
 
 It is stated in the notification that the grants will enable recipients to develop expertise 
and intellectual property and to leverage additional support from industry and the 
Commonwealth Government.  It is also indicated that two universities and one research 
institute are provided with the subsidy, and the subsidy must be spent on agreed research activities and proponents must have matching funding.  Would Australia elaborate more about 
the relationship between those universities and research institute and the industry?  What are 
"agreed research activities"?  Who will own the intellectual property rights as results of the subsidised research?  Who will have access to or  opportunities to use th ose research results in 
any business activities?    
Reply
 
 
 Each recipient must have at least one industry pa rtner to ensure that the work is relevant to 
industry and so that the research will be able to lead  to future commercialisation.  Details of the grant 
recipients and industry partners are available a t:  http://new.dpi.vic.gov.au/energy/projects,-research--
and--development2/energy-technology-innovatio n-strategy/sustainable-energy-research-and-
development.   
 
 Agreed research activities relate to the activiti es that are proposed by the applicant as part of 
their research.  They are included in the contract as milestones which are linked to grant payments.  
Non-confidential details are available at:  http ://new.dpi.vic.gov.au/energy/projects,-research--and--
development2/energy-technology-in novation-strategy/sustainable-energy-research-and-development.   
 
 The intellectual property (IP) and copyright in  all information, material and documents 
written, created or prepared in relation to the projects are owned by the company/organisation which receives the grant.  The company/organisation can shar e the IP with its project partners and generally 
sets up agreements between the project partne rs on IP rights and use of technology.   G/SCM/Q2/AUS/41 
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   The company/organisation licences to the Gove rnment the right to use and reproduce all 
reports and information provided to it after first consulting with the company/organisation.  If the 
material is confidential, the Government must receive the company/organisation's consent.   
  Many of the organisations take out patents on their work so access to the research results 
would depend on the rules around those patents.  
 
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