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IAC report on tyres



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77/68 BACA

IAC REPORT ON TYRES

The Acting Minister for Industry and Commerce, Senator

Peter Durack and the Minister for Business and Consumer Affairs

Mr John Howard today announced the Government's decision on the

Industries Assistance Commission report on tyres.

The Ministers said that the Government had accepted

the recommendations of the Commission in relation to the levels

of assistance to apply to tyres for passenger cars, utilities,

trucks, buses and trailers.

Senator Durack and Mr Howard said- that the present

rate of duty of 25 per cent, which includes an additional

temporary duty, will be continued for three years in order to

give local manufacturers the opportunity to reorganise their

production towards radial ply tyres and to allow them to

overcome other short term problems caused by the present

depressed conditions of the market. The Ministers said that

after this time the long term recommended rate of 20% would be

implemented.'

Senator Durack and Mr Howard said that the Commission

had recommended that a bounty should be paid on locally

produced large earthmover tyres and that a duty rate of 15%

should apply to all other types of earthmover tyres. The

Ministers said that since the receipt of the Commission's report,

the sole local manufacturer of large earthmover tyres had ceased

manufacture of these goods (although it will continue to produce

its standard . range of earthmover tyres). !

As a result the Government had decided that there was

no reason to introduce the recommended bounty. The Government

would implement rates of duty of 15% for all earthmover tyres

and normal by-law criteria would apply, the Ministers said.

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2 .

Senator Durack and Mr Howard stated that the Government

had accepted the recommendations of the Industries Assistance

Commission for the remaining goods covered in its report.

Minimum rates will apply to solid tyres, bicycle and motorcycle

tyres as there is no local manufacture of these products and

all other tyres covered by the report will be dutiable at 15

per cent.

CANBERRA

16 June 1977