PRESS STATEMENT NO. 403
9 December 1974
IMPORT POLICY FOR 1975
The Prime Minister, Mr Whitlam, announced today
a program of action for 1975 aimed at reducing current pressures
from import competition on employment in certain industries.
The Prime Minister said this action followed a
recent review of import trends undertaken by himself, the Deputy
Prime Minister, Dr Cairns, and the Minister for Manufacturing
Industry, Mr Enderby. The Prime Minister said it was clear that high levels
of imports were contributing to problems of unemployment in those
industries sensitive to import competition. It was important that
manufacturers and importers who were planning their activities for
1975 be aware of the Government's concern with recent trends,
and the Government's intentions in relation to imports during
1975. The Prime Minister went on to say that the program
of action decided upon would be based on a selective review
of those industries with demonstrable import problems. The
review would be undertaken through the machinery and procedures
provided under the Industries Assistance Commission Act. A program
of references would be sent to the Temporary Assistance
Authority and the Textiles Authority during the next month. This
would ensure that reports would be received and action taken
by February. The Government was determined to use to the full
the system and the machinery it had created to deal with such
problems. The integrity of the system would be maintained.
The Prime Minister said that, consistent with the
provisions establishing the Temporary Assistance Authority, new
appointments would be made to the Temporary Assistance Authority
to enable it to undertake enquiries promptly. In addition, the
Department of Manufacturing Industry had been instructed to
provide full assistance to manufacturers to help them prepare
cases for consideration for references to the Temporary Assistance
Authority. / 2
2,'
This programme of action involves an examination of the major
industries being affected by a high level of imports. The
Government will initiate appropriate action on these industries
within a few weeks, with full regard to the short term need to
maintain employmen~ t in these industries. The Prime Minister
stressed that the more prompt and specific an application for a
reference was, the more quickly appropriate action to safeguard
employment could be taken.
The Prime Minister pointed out that should the need for urgent
action emerge from these inquiries, goods ordered overseas but not
cleared for home consumption at the date of announcement of any
action would lie subject to the terms oi. -the action. Importers should
therefore exercise cauition in placing orders overseas and in
entering into financial commitments on such orders as special
consideration may not be given to outstanding commitments should
action be taken by the Government0
Motor Vehicles
As part of-the new policy for the motor vehicles industry
announced by the Government last month, the tariff on
passenger motor vehicles was immediately raised as shaort term
action, N~ ith the object of limiting imports of completely built*
up vehicles to a level no higher than 20 per cent of the
1-ocal market. * o / 3
Textiles. Clothina and Footwear
Effective action against imports had already been taken in
relation to a significant part of the textiles~ clothing and
footwear industries and further action was now being taken as
part of the program of action.
Import licensing controls ha~ d been applied to footwear in
October, following an inquiry and recommendations by the Temporary
Assistance Authority.
In clothing, the Government had in recent months negotiated
voluntary restraints on exports of certain knitwear and woven
apparel from Hong Kong, India, People's Republic of China and the
Republic of Korea. Import licensing controls had been applied
to imports of the knitwear goods concerned from Taiwan. These
arrangements generally applied to imports to 30 June 1975.
A review of the arrangements would be made early in 1975 to
determine as soon as possible the arrangements to apply from
1 July 1975.
Tariff quota arrangements h1ad been announced on 3 December for
imports of acrylic apparel yarns, knitted man-made fibre fabrics
and towels. This action followed an inquiry and repoort by the
Textiles Authority within the TAG.
As a result of decisions taken today on IAC reports before the
Government, tariff quota arrangements were also to be applied
immediately to imports of
0 polyamide and polyester yarns
o woven man-made fibre fabrics
o foundation garments
Details of these decisions would be announced separately by
the Minister for Manufacturing Industry.
There were currently references with the Textiles Authority
on the balance of the apparel industry for re.-. ort by the end of
December and January 1975 and further references were being
considered in relation to cotton fabrics and piece goods. 00 ./ 4
4,
A reference had been sent to the Textiles Authority in the
last few days on the carpet industry and the report on that
industry was expected about the end of January 1975.
in addition, over $ 1.5 million have been approved as grants to a
number of textile firms affected by import competition. These
grants were made under the Special Assistance for Non-Metropolitan
Areas ( SANMA) Scheme. Further applications from textile firms for
assistance under this scheme were being given urgent attention.
Domestic Appliances and Electronics
The Prime Minister said that the Government had been informed
tha~ t the domestic appliance industry was in the final stages of
preparing a documented case on the problems of import competition
which it was facing as the basis for an application for additional
short term assi~ tance. Submission of this application was expected
in the next few days. The application would be given urgent
consideration by Departments.
In relation to consumer electronic products, no application had
been made for additional assistance, elthough this had been
foreshadowed by some companies in the industry. The Prime Minister
invited the industry to prepare and submit a documented case
concerning import competition. Departments would consider urgently
any application submitted for a reference to the Temporary
Assistance Authority.
Other Industries
Reference's were sent last week to the Temporary Assistance
Authority on injection moulding machines and tyres. In the area of
glass, tariff preferences for imports of flat glass from developing
countries have been removed and the Government will be announcing
decisions on the IAC's glass and glasswear report early in the
New Year. Sectors of the forest products, furniture and ceramics
industries have foreshadowed making applications for short-term
assistance. In relation to printed books which are assisted by
way of bounty rather than tariff or quantitative restrictions,
the. Government is currently considering representations for a wider
coverage of bounty0
Other Measures
In the field of exchange rates the Government took action in
September to devalue the Australian dollar by 12 per cent. This
significantly improved the competitive position ofL Australian
industry on both domestic and export markets0
The Priine inister said thct thLe Department of Customs and Excise
had been directed to expedite action regarding applications for
anti-dumping action and to give more attention to the likelihood
of injury to Australian industry from dump,. ing0
Similarly, in relation to by-law policy, the Minister for Customs
and Excise had already announced that this policy would be
interpreted to ensure that local manufacturers were not disadvantaged
vis-a-vis imports. A careful Miatch would be kept on the
application of by-law policy during 1975,
The Prime Minister concluded by saying that the Government would
ensure that the community had a reasonable choice between imports
and local manufacture. However, there was a need for a
careful balance to ensure that employment opportunities were not
disrupted. The Government would ensure that during 1975 the most
appropriate balance was achieved between imports and local
production. 0