Mr McARTHUR(5.38 p.m.) —I have argued in this House and publicly that tariffs have never protected jobs. That fundamental truth is clear if you look at the data and information over the last 20 years. The benefits of tariff protection, as members of the former Labor government would understand, have flowed to consumers and exporters. The protected industries have improved under a reducing tariff regime.

All the evidence suggests that tariffs have never protected jobs. Jobs have declined in the car and TCF industries in recent times. However, if you look at the available information you will find that when tariffs reached their peak in the 1970s jobs still declined. I challenge anyone in this House to argue the case that tariffs have protected jobs in the long term. Members of this House would fully understand that productivity and profitability were poor in the TCF and car industries when tariffs were at their highest peak. The attitude of both management and those employed in TCF industries was that they were owed a job.

Investment was at a standstill under the high tariff regime and capital stock from the 1900s was not replaced. When tariffs were reduced in both the TCF and car industries productivity, quality and profitability improved—a fact borne out in the Industry Commission report. It is important for members of this House to understand that these industries need to remain profitable—in those terms jobs will be retained.

People are suggesting that the Industry Commission have not provided factual information. An in-depth reading of the Industry Commission report indicates that they have talked to employees and management in that industry and that they have given accurate advice. The important point that is driven home to me is that members of this House and other commentators wish to shoot the messenger because they might be observing factual information about the TCF industries.

I draw the attention of the House yet again to the fact that the Labor Party, when in government, introduced the reduction in tariffs. They reduced tariffs in 1984 to apply to the year 2000. The current debate is about a comparatively small reduction in tariffs from the year 2000 to the year 2008. Everyone in the TCF and car industries knows that tariffs should come down. I have not yet met anyone in those industries who has suggested that tariffs should go up. Let us establish that clear fact.

The APEC objective is that by 2010 there should be negligible tariff levels of between five and 10 per cent. The former government agreed with that, the present government agrees with that and most commentators in Australia agree with that. The World Trade Organisation is moving towards that objective as all nations will be better off under those arrangements. The current debate in the House is about the rate of reduction of the tariff regime. No other industry receives protection—apart from the car and TCF industries. We need to remember that protection is paid by every other Australian in the form of tax. General manufacturing gets only about five per cent protection.

The orange juice market has received a lot of attention in recent times. It is interesting to observe the key features of that market. Orange juice imports were 24 per cent less last year than they were in 1995-96. At the same time, our own production doubled. Those are very important features to understand. The important factor to remember is that we must move to become a global trading nation. Globalisation is here for the TCF industries. I appreciate that the apparel industry is facing competition from low wage countries. The footwear industry can find niche markets if they have quality products and good delivery times. The textiles part of the TCF industries will depend upon investment in new capital.

The key element of this debate is the timing of tariff reductions not the tariff reductions themselves. Members opposite who are suggesting that the removal or a pause in tariffs will save jobs have been misled. History proves quite conclusively that the tariff reductions and high tariffs under the Labor government did not save jobs. Tariff reductions encourage the industry to remain profitable and, in that way, jobs will be kept in the electorate of the honourable member for Hunter (Mr Fitzgibbon). (Time expired)