Tough times prompt council to ease criteria for marketing fund

Dunedin businesses wanting to market to current customers and suppliers will now be able to apply for funding through the Dunedin City Council's economic development.

The council last week voted to loosen the rules around its support for business grants.

Until now, the marketing-support fund offered a subsidy of up to 50% for marketing costs only when selling into new markets.

Economic development committee chairman John Bezett said the change was in response to current economic times.

"Many businesses need reassurance that their current customers and key suppliers are solid before they can consider selling in new markets.

"The council recognises this and the marketing-support fund criteria have been widened to allow this to fit the criteria."

The rules had been loosened until the end of 2009 in recognition of the economic challenges being faced by businesses, Mr Bezett said.

Otago Chamber of Commerce chief executive John Christie welcomed the announcement.

The economic development unit was showing great flexibility and the chamber supported recognition of the challenging times businesses were facing, he said.

The market-support programmes offer support to Dunedin city firms to develop their markets (both domestic and international) for their products and services.

The primary focus of the programme is increased revenue for business.

The programme provides assistance of up to $10,000 to firms.

The funding is reimbursement on a dollar-for-dollar basis and covers external costs only.

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