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Democrats support $12,000 tariff on second hand cars



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*mam* SENATOR SID SPINDLER

AUSTRALIAN DEMOCRAT SENATOR FOR VICTORIA M E D IA RELEASE

PARLIAMENT OF AUSTRALIA · THE SENATE

22 June 1992 92/341

DEMOCRATS SUPPORT S12.000 TARIFF ON SECOND HAND CARS

The Australian Democrats today confirmed that they would support the Government's proposed $12,000 tariff on imported second hand cars.

"We are simply not prepared to jeopardise local jobs and the currently finely balanced industry plan by introducing yet another competitor from abroad", Senator Sid Spindler Democrat Spokesperson on Trade and Customs said today.

"These secondhand Japanese cars are becoming available at low prices because Japanese authorities make reregistration prohibitive to get them off their roads and protect jobs in the Japanese car industry. We should not become their dumping ground

at the expense of our car industry which is making strenuous efforts to become more competitive.

"If these used cars were allowed to come on the market here the small, medium and upper medium segments of Australian based producers would suffer most with 30,000 at risk in the small segment (Laser, Corolla/Nova), 30,000 in the medium range

(Camry/Apollo, Magna) and up to 25,000 in the upper medium segment (Commodore/Lexen, Falcon, Verada).

"Such losses in market share would affect the viability of production runs and endanger current jobs, future investment and long term employment.

"Arguments favouring the import of these vehicles are based mainly on the principle of consumer choice, but on balance, the jobs in the factories of Australian car makers and component manufacturers outweigh this benefit to the consumer.

"The Government's offer to compensate Taiyo Corporation for initial outlays is one which we would regard as an equitable and proper way of finalising this matter", Senator Spindler

concluded.

For further information: Contact Senator Spindler 06 277 3640 (w), 06 255 2343 (h).

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