Amendments to TCF Scheme detailed by minister
Australia’s Minister for Industry, Science and Resources, Senator Nick Minchin, last week announced amendments to the Textile Clothing and Footwear Strategic Investment Program (TCF (SIP) Scheme) aimed at clarifying the scope of an eligible TCF activity under the Scheme.
The amendment will make it clear that activities listed in Subdivisions 21 and 23 to 29 of the Australian and New Zealand Standard Industrial Classification are ineligible activities, unless expressly stated in Schedule 1 to the Scheme. It will also remove the open-ended category of "textile products, manufacturing, not elsewhere classified" in Part G of Schedule 1.
Senator Minchin said speculation about eligible activities had resulted in concerns in the industry that SIP funds could be diverted away from activities the Scheme was meant to target.
"The amendments announced today will provide greater clarity and certainty about the intentions of both the Government and the industry when the scheme was developed," Senator Minchin said.
The President of the Council of Textile and Fashion Industries of Australia (TFIA), Mr Frank Kisvarda, strongly supported the amendment.
"The TFIA has made a number of representations to Senator Minchin regarding the scope of the TCF (SIP) Scheme," he said.
"The Minister is to be congratulated on this announcement and the TFIA looks forward to the appropriate amendments ensuring removal of any doubt as to textiles, clothing, footwear and leather activities eligible for assistance under the Scheme. The TFIA will continue our efforts, as necessary with the Minister and his Department, to assist in finalising this matter."
Senator Minchin said he would also amend the TCF (SIP) Scheme to permit sale and lease-back arrangements for plant or equipment where the lease-back is by way of a financial lease and the plant and equipment remains capitalised in the entity’s accounts.
He said figures for the current and past financial years demonstrated that the TCF (SIP) Scheme had been very well received by industry. In 2000/01, 437 entities had registered under the Scheme and 431 entities had applied for registration for 2001/02.
Senator Minchin said he expected most firms would be in a position to claim their first grant from July 2001 and this would assist the ongoing restructuring and refocusing of the industry.
