SA: Minister defends support for the car industry

AAP General News (Australia)
04-27-2001
SA: Minister defends support for the car industry

By Tim Dornin, National Motoring Correspondent

ADELAIDE, April 27 AAP - Federal Industry Minister Nick Minchin has defended the government's
support for the car industry amid growing calls for a freeze on tariffs on imports.

Senator Minchin, who will visit Toyota and Mistubishi in Japan next month to explain
the benefits of current government assistance programs, also called on unions to take
a more flexible approach to workplace relations to help secure the future of local vehicle
manufacturing.

His call followed demands from unions yesterday for the government to impose a freeze
on tariffs until 2010 instead of going ahead with a plan to cut them from 15 per cent
at present to 10 per cent in 2005.

Such a freeze would assist the investment climate for local car producers, particularly
Mitsubishi in Adelaide, the South Australian United Trades and Labour Council (UTLC) said.

Defending the government's policy, Senator Minchin said the government had an excellent
record of support for the vehicle sector.

"The industry is currently profiting from the federal government's decision to freeze
tariffs at 15 per cent from 2000 to 2005," he said.

"By holding tariffs at 15 per cent and stopping the annual reduction of 2.5 per cent
implemented by the previous Labor government, we have provided a smooth transition period
for the Australian car industry to adjust from a high protection environment."

Senator Minchin said the UTLC was aware the federal and state governments were doing
all they could to secure the future of the local car industry and should do its part by
taking a more flexible approach to workplace relations.

"Unions must recognise the potential benefits of introducing more flexible workplace
relations if the automotive industry in Australia is to compete internationally," the
minister said.

For its part Mitsubishi has called for a review of the current tariff arrangements
in 2003, ahead of the cut to 10 per cent two years later.

Ford has also called for a rethink on the current arrangements.

AAP tjd/jas/sb

KEYWORD: MOTOR MITSUBISHI (CARRIED EARLIER)

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