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Labor's TCS proposal unworkable

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^ austral ^ . ' M i n i s t e r f or I ndus t r y, S c i e n c e a n d T o u r i s m T h e Hon. J o h n M o o r e , MR

Thursday, 9 A fay; 1996 30/96


The Labor Party’s proposal to abolish most of the tariff concession system was completely unworkable. Its administration would have been impossible.

It is not possible in many, if not most, cases to clearly discern the difference between consumer goods and business inputs.

For example:

• A mobile telephone could be imported for either personal or business use.

• A television set could be used as a business input in a motel or as a consumer good, obviously, in the family home.

• A child’s toy, if it’s to be used at a professional child-minding facility would be a business input. Or it could be a consumer good to be used at home.

Obviously, the proposal put forward by Labor during the election campaign had not been thought through.

Apart from the administrative nightmare, the costs imposed would have been far higher than under the much improved system announced by this Government.

Under Labor’s plan, life-saving medical equipment would have been hit by the full tariff. Under this Government’s proposal it will still be eligible for a concession.

Labor did not consider the impact on industries such as textiles, clothing and footwear, nor the impact on car makers.

Under Labor’s plan car parts would have faced the 15 per cent and some clothing and finished textiles would have faced a tariff of 37 per cent. Instead, these items will still be eligible for a concession and only pay 3 per cent.

The proposal announced by this Government is a vast improvement on Labor’s plan.

Contact: CMR043

Cheryl Cartwright 06/2777580