J AUSTRALIA( Press; Statement: No. 1-22.
28 August-1973
GOVERNMENT POLICY ON THE MOTOR INDUSTRY
STATEMENT BY THE PRIME MINISTER,
MR. E. G. WHITLAM AND THE
MINISTER FOR SECONDARY INDUSTRY,
DR. J. F. CAIRNS
Cabinet has laid down new rules and objectives for
the Australian motor industry. The Government desires to
improve the efficiency with which the community's productive
resources are used and to recognise the interests of consumers.
The Tariff Board has been informed of the Government's
policy. Motor vehicle firms, including Nissan and Toyota,
are being invited to submit to the board statements of action
they propose to take, and of action they consider the
Government should take, to give effect to the policy.
The board has been asked to present its report by the end
of October 1973. Firms are urged to furnish their statements
to the board as promptly as possible.
The Government intends that the industry must operate
at the highest possible level of efficiency and economic
management and with high Australian content. The vehicles must
afford a high level of safety in construction and use and have
effective anti-pollution devices. The industry must be well
located for social, employment and environmental purposes.
There should be improved labour relations and production
techniques, and a substantial Australian participation,
including equity, in the industry.
The Government does not believe that its policy can be
implemented by conventional tariff action alone. The Government
believes that its policy will involve product rationalisation,
joint use of resources, prevention of model proliferation and
relatively greater manufacture of light cars in Australia.
It is envisaged that some regulation of imports may be
necessary. ./ 2
As part of the Government's plan, the Minister
for Defence and Supply, Mr. Barnard, has been authorised to
obtain a report from the Government Aircraft Factory
on the possibility of its manufacturing a car in Australia.
Australia is now a regional centre for the
automotive industry, and the Government's policy recognises
that manufacturers may wish to co-ordinate their Australian
production with other manufacturing facilities in the Asian
and Pacific region. Manufacturers' import and export plans
would therefore be related to Australian production.
The Government hat agreed that the Japanese companies,
Toyota and Nissan, should be offered an opportunity to
manufacture in Australia. All companies in the industry, including
Nissan and Toyota, will be invited to submit to the Tariff Board
statements of the action they propose to take to give effect to
the policy objectives of the Government.
Since Nissan and Toyota are only now commencing
manufacture in Australia, the Minister for Secondary Industry
has been authorised to have discussions with them about
Government participation in their operations in Australia.
The Government expects the Tariff Board, in making
its recommendations, to indicate the cost to consumers and the
other effects, including those upon employment and environment,
of any action it recommends. The board will also be asked
to consider other measures, such as subsidies, taxation
concessions and Government investment, which together with
tariffs and " plan-type" recommendations, would best insure
the effective implementation of the Government's aims.
CANBERRA.