J~ tAU ST HAL I
PRIME MINISTER PRESS STATEMENT NO. 148
COLOUR TELEVISION 19 November 1973
One of the first acts of the present Australian
Government was to request the Tariff Board to thoroughly
review the electronic industry as a prelude to the
introduction of colour television in Australia. It took
this action on December 7, just 5 days after assuming
office. The Liberal Government had failed to take any
action on this matter. The Board has now reported and
the Government has made its decision after consideration
of that report. As a result, Australians will now have
to pay considerably less for colour TV sets than would
have been the case under a Liberal Government.
The Government has accepted the basic thrust of
the Tariff Board Report on Consumer Electronic Equipment
and Components which recommends that the existing tariff
rates for these goods be reduced significantly. This will
provide the Australian consumer with a wider range of
cheaper electronic consumer goods, including colour
television sets. It will also' provide a basis for greater
specialisation in the relevant sections of the Australian
industry, with consequent benefits for the nation as a
whole. The Government has decided not to accept the
precise recommendations of the Tariff Board in respect of
the rate of duty which would apply. Subject to international
commitments the new rates will be 35%. The Board had
recommended 25% on most imported electronic components,
on imported made-up appliances, including monochrome
and colour TV receivers, radios, radiograms, record players
and the like. The old rates of duty were 33.75% plus
$ 37.50' on TV receivers,* 33., 75% plus $ 7.50 on radio
receivers and 33.75% plus various specific rates on
components. The adoption of the new duty rates will result
in colour TV receivers retailing for at least $ 150 less
than under the tariff pr~ oposals put forward by the
manufacturers. In order to ensure that the benefits of
the new duty rates are passed on to consumers, prices of
colour TV receivers and other electronic consumer goods
will be kept under close review and action considered as
appropriate to ensure that margins and prices are justifiable. / 12
-2
In supporting its recommendations for a lower
rate of duty than has been accepted, the Board stated
that the level of employment in the industry would be at
least maintained, although a substantial number of persons
would change their employment. Factors contributing to
this arc the current world shortage of components, the
fact that the area of reduced protection is confined to
the consumer electronic products industry and the buoyant
economic conditions presently enjoyed. Under the
Government's decision the employment effects of the
reduction in protection are likely to be less than under
the Tariff Board's proposals. Nevertheless, the Government
has asked Departments to direct their attention to the
likely future situation in regard to employment in South
Australia, which has a narrower range of production than
New South Wales and Victoria, the other States mainly
involved in the electronics industry.
The Cabinet will introduce appropriate subsidy
assistance to maintain, at least until the Tariff Board
report on professional electronic equipment is considered
by the Government, the production in Australia of selected
electronic components which are or could be important for
their defence, telecommunications or technological
significance, e. g.
integrated circuits
discrete semi-conductors
crystals transmitting valves
certain types of capacitors,
special purpose transducers derived from
ceramic capacitors,
certain types of resistors, and
transformers, as used in. electronic equipment.
The precise list of components which might be covered by
such assistance will be determined by the Government after
further consideration of defence, telecommunications and
technological aspects. Advice would be sought from
appropriate Departments and technical authorities, e. g.
Universities and/ or consultants. The nature and extent of
any subsidy assistance would be subject to appropriate
rationalisation and restructuring being undertaken by
the industry in consultation with Government. The details
of this assistance will be determined and announced before
the end of June 1974. The future of the subsidy assistance
introduced will be reviewed at the time of consideration
of the Tariff Board's report on professional electronic
equipment. ./ 3
Finally, Cabinet has decided that assistance will
be made available to firms and employees harmed by the
proposed tariff changes. Details of assistance and
eligibility will be announced after the completion of the
Government's general consideration of adjustment assistance
principles. If necessary, interim assistance arrangements
will be implemented. The new duties will operate on and from
November 1973.