9

2 The activity must be new to the region in that its technical feasibility and/or commercial viability has yet to be established in the region.

Qualifying Costs

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

• Fees of professional advisors hired for the investigation (legal, accounting, engineering, marketing etc)
• Tolls, fax and postage costs
• Power which is separately metered
• Cost of hiring or leasing of plant and equipment
• Pilot plant 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
• NZ provisional patent applications and searches.

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

Some qualifying costs may have a residual value applied to them. This is applicable only to items which are on a larger scale than necessary for an investigation. The value is determined by assessing the likely market value of the relevant items at the conclusion of the investigation.

Where sales are to be made during the investigation 75 percent of estimated revenue is to be deducted from eligible costs.

Where individual consultant’s fees are in excess of $5,000 (grant of $2,500 or more sought) the applicant MUST attach:

• evidence that competitive bids have been sought; OR
• an explanation of why competitive bids have not been sought.

Note: Boards have the discretion to require applicants to provide competitive quotes for fees below this $5,000 level; if Boards exercise this discretion they must explain their reason(s) for doing this.

Costs which Do Not Qualify

Examples of ineligible costs are:

• The applicant’s own salary/wages, those of existing employees, those of subsidiary/associate/parent companies, those of immediate family members and those with a pecuniary interest in the project
• Debt servicing
• Capital items not directly associated with the investigation
• Overseas marketing costs
• The cost of setting up the substantive project

10

• Costs incurred before the letter of intent or grant application were made
• Costs met by other government funding

BDIG 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.

18. Expert Assistance Grant Scheme

Scheme Philosophy

The EAGS targets established, small to medium sized businesses which compete or are able to 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.

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. 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.

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

Eligibility Criteria

Any individual, business or organisation resident in New Zealand and registered for either income tax or goods and services tax purposes (ie based in New Zealand for the purposes of tax) meeting the following four criteria is eligible to apply:

1 Produces goods or provides services that already compete, or show potential to compete, in both domestic and international markets. This encompasses businesses that are selling or intending to sell in overseas markets and those that are selling in competition with imports; and
2 Employs no less than five, and no more than 100 full time or full time equivalent staff; and
3 Has been trading for not less than 18 months (a business which has been in existence for this length of time, or more, but has not traded during this time would not be eligible); and
4 Has not previously been approved a grant towards a project in the same target area of the scheme except for a business appraisal which is available every year.

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 incorporate a planning element and fall within one of the following target areas.