Minister's foreword




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CLEAN TECHNOLOGY FOOD AND FOUNDRIES INVESTMENT PROGRAM



The $200 million Clean Technology Food and Foundries Investment Program will operate over six years from 2011-12 to 2016-17. The program funds are split with $150 million for the food component and $50 million for the foundries component. It is a competitive, merit-based, grants program. The program will provide grants from a minimum of $25,000 and will contribute on average one dollar for every three dollars contributed by grantees (e.g. a Government contribution of up to 25 per cent of eligible project expenditure).


The objective of the program is to enhance the competitiveness and adaptation to climate change of Australia’s food and beverage processing and foundry and metal forging manufacturing sectors by reducing the energy or carbon intensity of firms’ manufacturing processes, facilities and/or products. These sectors have energy intensities close to the threshold for the Jobs and Competitiveness Program but are not covered by the Jobs and Competitiveness Program3.


The Clean Technology Food and Foundries Investment Program will provide grants to existing food and foundry manufacturers to invest in energy efficient capital equipment, low pollution technologies, processes and products. Applicants will be required to demonstrate that the investment is beyond routine maintenance or replacement of capital items.


Energy consumption thresholds do not apply to Food or Foundry grant applicants. However, applicants will be required to identify total energy consumed and/or carbon generated on the manufacturing project site in the 12 months prior to the application date. Applicants will also be required to identify energy or carbon savings as a result of the project.


QUESTIONS

  1. It is conceivable that there may be applications for very large projects. Should there be a maximum total of funding provided to any one business under this program? If so, what amount? Please provide justification.

  2. It was announced that there would be an average of 3:1 funding contribution for the program which implies that some grant rates could be higher and some lower. What mechanisms can be used to ensure this average?



WHO IS ELIGIBLE?



Which food businesses are eligible?


To be eligible to apply for a food grant under the Clean Technology Food and Foundries Investment Program:

  • the applicant must be an incorporated business in Australia, which undertakes manufacturing of:

    • Meat and Meat Product Manufacturing;

    • Seafood Processing;

    • Dairy Product Manufacturing;

    • Fruit and Vegetable Processing;

    • Oil and Fat (food) Manufacturing;

    • Grain Mill and Cereal Product Manufacturing;

    • Bakery Product Manufacturing;

    • Sugar and Confectionery Manufacturing;

    • Other Food Product Manufacturing; or

    • Beverage Manufacturing4.

  • the applicant must be able to show it can fund its share of project costs.


Ineligible activities


Non factory based Bakery Product businesses - ANZSIC 1174 - are excluded from this program.


QUESTIONS

  1. Although this program is directed at food manufacturers, should supply chain and other collaborative activities be eligible for funding (e.g. projects involving a manufacturer in combination with transport and/or cold storage providers)? Please provide justification.

  2. What constraints, if any, should be applied to supply chain and collaborative activities (e.g. can the supply chain/collaborative component be the major focus of the project proposal)?


Which metal forging and foundry businesses are eligible?


To be eligible to apply for a foundries grant under the Clean Technology Food and Foundries Investment Program:

  • the applicant must be an incorporated business in Australia, which undertakes manufacturing of:

    • finished iron and steel products by casting molten ferrous metals in moulds (ANZSIC code 2121);

    • finished non-ferrous metal products by casting molten non-ferrous metals in moulds (ANZSIC code 2141); and/or

    • semi-finished or finished iron or steel products by the process of forging or compression (ANZSIC code 2210).

  • the applicant must be able to show it can fund its share of project costs.


Eligible applicants with diversified businesses including foundry and/or metal forging operations could apply for funding provided the proposed project relates to their foundry and/or metal forging operations.


Ineligible activities


Smelting, refining, extrusion, machining, fabrication and other metal processing activities are excluded from this program. Activities eligible for assistance under the Jobs and Competitiveness Program are ineligible under the Clean Technology Food and Foundries Investment Program.


QUESTIONS

  1. Are there any gaps in the above definition of an eligible foundry and metal forging business that should be included as well?

  2. Are applicants with a mixed business model able to report on energy consumption associated only with the foundry and/or metal forging activities?

  3. What type of supply chain and other collaborative activities should be eligible for funding? Please provide examples and justification.



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