Policy Area: Commerce and Industry

Statement of General Direction:

To maintain a strong open and internationally competitive economy which encourages export growth.

Key Initiatives of Policy:

Form active partnership with export sector establishing Export Guarantee Scheme. (Economic)

Venture Capital Fund to provide venture capital finance for exports. (Economic)

Tradenz - create Technology Transfer Agency and increase funding to expand operation - $2 million 1997/98 to be reviewed in March 1998.

Review tax legislation to deny tax driven transactions which lack commercial substance or justification. Omit policies of the present tax act that are capable of distorting commercial decision making. Injunction and prosecutions to prevent continuation of harmful tax practices and schemes. (Taxation)

Other Issues Raised at Bilateral:

1998 Tariff Review to proceed in line with current policy, taking into account the policies and progress of other trading partners.

Commercial policy to support light handed regulations with power to regulate if necessary.

Fiscal Implications of this Policy Agreement:

$2 million 1997/98 review in March 1998.

Uncertain, see exports policy.

(All funding proposals subject to being considered within the agreed spending policy parameters.)

Legislative Implications of this Policy Agreement:

Potential legislation changing:

• taxation
• those issues covered in other bilaterals.