PM Transcripts

AUSTRALIA L PRESS STATEMENT NO.' 325
12 September 1974
REFERENCE TO INDUSTRIES ASSISTANCE COMM\ ISSION
The Prime Minister, Mr Whitlam, announced today
that he had forwarded a reference to the Industries Assistance
Commission on whether assistance should be accorded the
production in Australia of soaps and other detergents and
other related products.
This reference has been forwarded to the Commission
following the recommendation of the Joint Committee on Prices
in its recent report on the Prices of Household Soaps and
Detergents. The Committee recommended that as a further
measure to increase competition the. question of the level
of protection on household soaps and detergents be referred
to the Industries Assistance Commission.
The Committee stated that the insignificance of
imports and the level of profits earned in this industry
indicate that it is over-protected. It said that the removal
of import duties may not have an immediate effect on competition
in the domestic market because the major manufacturers are
corporations who have manufacturing plants in countries
such as New Zealand. However, the Committee considered that
the removal of duties increases the potential for import
competition from countries such as Japan and could have the
effect of restraining price increases on the domestic market.
The last comprehensive review of the level of
protection for the soaps and other detergents industry was
that by the Tariff Board in October 1963.
CANBERRA. A. C. T.