The Federal Government has confirmed its commitment to promote job security, with a sensible and practical new package for the TCF industries.
The package will help to develop sustainable, internationally competitive textiles, clothing, leather and footwear (TCF) industries in Australia.
It is designed to assist in securing jobs in the TCF industries by encouraging additional investment and promoting the development of an internationally competitive TCF sector in the lead-up to the free trade environment beyond 2010.
The Government's new TCF package provides a practical transition, designed to promote investment and innovation in the TCF industries and encourage the development of long-term, sustainable, real jobs.
The key features of the package are:
The current schedule for TCF tariff phasing will continue through to 2000.
TCF tariffs will be maintained at the same level from 1 July 2000 until 1 January 2005.
The Government will introduce legislation in the current session to implement a reduction in TCF tariffs on 1 January 2005 (see attachment).
Develop forward looking action agendas with industry for wool, cotton, leather and fashion to identify what can be done to make more use of Australia's natural advantages in these areas.
Establish a TCF Investment Programme designed to build globally competitive capacity in the industry.
Establish a $10 million TCF Technology Development Fund and provide $10 million for a national centre of excellence for TCF training.
Establish a new Market Development Programme with funding of $2.5 million per year to develop and implement firm based strategies to increase export capabilities.
An expanded Overseas Assembly Programme to enable increased use of Australian textiles.
Examine removal of anomalies in TCF by-laws and tariff concessions.
There will be a review of TCF tariffs in 2005 which will take account of our APEC commitments and progress on market access.
The period of consolidation between 2000 and 2005 will enable Australian TCF firms to strengthen their competitive position after a period of significant change.
The Government is committed to ensuring Australia will meet its APEC commitment to free trade by 2010. The TCF industries have indicated their agreement to this objective.
Entry to the new TCF Investment Programme will be competitive, based on a commitment to high value-added activities of significance to Australia.
The TCF industries, as a result of the Government's plan, expect to see $400 million per year in new investment.
The Government's plan will encourage more value added activity in natural materials processing, design, research and development, marketing, and product assembly. It will encourage strategic alliances, joint ventures, and effective value chain management, as well as investment in skills development.
10 September 1997