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Industry commission review of automotive industry



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MINISTER FOR

TOY

TECHNOLOGY and COIMlIMlEtRO SENATOR JOHN BUTTON

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INDUSTRY COMMISSION REVIEW OF AUTOMOTIVE INDUSTRY

The Industry Commission has recommended that protection to Australia's automotive industry be cut to a 15 per cent tariff by the year 2000.

This is a slower rate of reduction than the 15 per cent by 1996 proposed in the Commission's draft report last September.

The final report of the Industry Commission Inquiry into the arrangements for the automotive industry following the end of the current Car Plan in 1992, was released today by the Minister for Industry, Technology and Commerce, Senator John

Button.

The Inquiry, requested by the Federal Government in May last year, was brought forward from 1991 so the industry would have as much notice as possible of the post 1992 arrangements.

The Industry Commission has recommended that tariffs on imported vehicles and components be reduced from the 35 per cent which will prevail at the end of 1992 to 15 per cent by 2000 . - ·

The Commission also has recommended changes aimed at promoting both vehicle and component exports. Under the existing car plan the vehicle companies are allowed to import automotive products duty free in return for automotive exports.

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COMMONWEALTH PARLIAMENTARY LIBRARY MICAH

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The Industry Commission has recommended the export facilitation arrangements be made more flexible for assemblers, importers and component manufacturers.

Senator Button said the Commission's final report would be considered by the Government. He stressed that no final decision on the Commission's recommendation had yet been made. He expected a decision on the future arrangements for the automotive industry to be made in the next few months.

"The Government is committed to the future of the Australian car industry", Senator Button said.

"The industry has made substantial progress under the current car plan. We want to see it become even more internationally competitive. We want an export orientated industry producing cars at the lowest possible price to consumers."

CANBERRA Contacts:

Laurie Wiggins Minister's Office (06) 277 7580 (W) (06) 288 3352 (H)

Mike Roberts Minister's Office (06) 277 7580 (W) (03) 862 1996 (H)