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.