7

Qualifying Costs

Costs which directly relate to the investigation may qualify. These include:

• Fees of professional advisors hired for the investigation (legal, accounting, engineering etc)
• Tolls, fax and postage costs
• Power which is separately metered
• Cost of hiring or leasing of plant and equipment
• Pilot plant costs
• Trial planting costs
• Overseas and domestic travel and accommodation costs - up to a maximum of $10,000 thereby giving a maximum grant component of $5,000
• Materials for construction of prototypes.

Note: Overseas travel is only available for projects which involve the investigation of technology transfer to New Zealand.

Costs which Do Not Qualify

Examples of ineligible costs are:

• The applicant's own salary/wages, those of existing employees, those of subsidiary/associate companies, and those of immediate family members
• Debt servicing
• Capital items not directly associated with the investigation
• Overseas travel costs for marketing purposes.

RDIG Conditions

In offering a grant to successful applicants each Board must use the prescribed approval letter that lists all 10 of the scheme's conditions.

15. Expert Assistance Grant Scheme

Scheme Philosophy

The EAGS targets established, small to medium sized businesses which compete internationally.

It provides grants as an incentive to encourage businesses to engage consultants in key management areas where better performance will lead to sustainable improvements in efficiency and competitiveness. This in turn will result in increased profitability and growth.

8

Assistance Available

The scheme is available throughout New Zealand and offers 50% of the cost of a qualifying consultancy project to a maximum of $8,000. A reduced percentage will apply where only part of a project is of a type covered by the scheme.

A maximum of $20,000 per applicant per year shall apply for the combined total of grants approved under the EAGS and the EGDS. This limit is based on a July/June year.

One grant per applicant per year shall be available. The exception is the business appraisal which is available in the same year as a project in another area. The business appraisal is available once every twelve months.

Eligibility Criteria

To be eligible the applicant must:

a) Deal in internationally tradable goods and/or services; and
b) Employ no less than five, and no more than 100 full-time or full-time equivalent staff; and
c) Have been trading for not less than 18 months; and
d) Not have previously been approved for a grant towards a project (other than a business appraisal) in the same target area of the EAGS, or the former Expert Assistance Programme.

Qualifying Projects

Qualifying projects are those aimed at assisting the applicant's management to develop and implement strategies which lead to a sustainable improvement in business performance and competitiveness. Projects must fall within one of the following target areas.

(a) General business appraisal. This involves a comprehensive evaluation of the applicant's performance in key management areas, and recommends where the applicant would get most value from engaging further specialist assistance.

(b) Business planning. This helps the applicant apply appropriate techniques to its business planning processes. This includes the Excellenz World Competitive Manufacturing approach to business planning.

(c) Marketing Strategy. This assists the applicant to develop an overall marketing strategy. Under the terms of the Australia New Zealand Closer Economic Relations Trading Agreement (ANZCERTA) assistance cannot be provided in this area for activities directed at the Australian market.

(d) Product design. This involves comprehensively reviewing an applicant's design strategy, or developing a strategy where there is not one in place.