The report, commissioned by the Federal Government last year, has made a series of recommendations for areas the government can make savings, as part of what is expected to be a belt-tightening budget next week.
Recommendations in section 8.1 of the report, which may be ignored by the government, include cutting the budget for Screen Australia by half and focussing it on Australian content and shows “with an historical perspective that might not otherwise be funded”.
It also suggests scrapping a government grant supporting marketing for small export businesses in overseas markets, saying often the benefits of the scheme cannot be recorded outside of that business.
It said: “Popular as the scheme is, there is unlikely to be a significant spillover effect from the Export Market Development Grants scheme, as little economy-wide learning is promoted. Changes in the international environment mean that businesses have more experience and more opportunities for international marketing and therefore less need for government assistance. Austrade’s 2011-12 Annual Report stated that 38.7 per cent of Export Market Development Grant recipients during the previous financial year employed four people or less.”
Cash for Tourism Australia is also recommended to be cut in half, threatening the $185m the body receives annually from the government. It instead recommends only international advertising from the body, and more cash from state governments for localised promotions.
The report states: “Nearly two thirds of Tourism Australia’s budget is directed to advertising and other promotional activities. While tourism is one of Australia’s main exports, most of the benefits of tourism accrue to the tourism operators. There is no clear reason why significant funding should be provided to tourism above other Australian export industries.”
Budgets for Tourism Australia, Screen Australia and overseas marketing under threat
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