Fed: Tariff cut good for industry and consumers, AIG

00-00-0000
Fed: Tariff cut good for industry and consumers, AIG

MELBOURNE, Dec 13 AAP - The federal government's automotive industry package wouldbe good for the industry and consumers, an employer group said today.

The Australian Industry Group (Ai Group) welcomed the continuation of the AutomotiveCompetitiveness and Investment Scheme (ACIS) and the new $150 million funding for researchand development (R&D) initiatives.

Ai Group chief executive Bob Herbert said those components of the industry packagewere in line with what his organisation had sought from the government.

"The new automotive assistance package presents a challenge to the industry in thelong-term in meeting the 2010 tariff target of five per cent while providing certaintyand stability in the short-to-medium term," Mr Herbert said.

"The greater emphasis on R&D spending in this package will further encourage the industryto become more competitive and continue to be a pacesetter in export growth.

"The decision is both a win for consumers and the automotive industry."

Mr Herbert also welcomed the Productivity Commission review before the 2010 tariffcut to five per cent.

"The target of five per cent tariffs in 2010 needs to be reviewed in light of how theautomotive industry has progressed alongside the action taken by competitors to lowertheir tariffs and non-trade barriers," he said.

AAP bja/jlw/mg/de

KEYWORD: TARIFFS AIG