The Treasurer, Peter Costello, and the Minister for Industry, Tourism and Resources, Ian Macfarlane, today announced an inquiry into the automotive industry to inform government decision-making on policy arrangements to apply after 2005.
During the election, the Government promised to initiate as soon as possible a major inquiry into post-2005 assistance measures for the Automotive industry. This announcement fulfils the commitment.
"The Government will be referring the inquiry to the Productivity Commission to make findings about the automotive industry and its prospects and to set out options the Government might consider for the future " Mr Costello said. "We appreciate the industry has long lead times for investment and is seeking certainty about future arrangements. The Government remains committed to lowering automotive tariffs in 2005. The terms of reference for the inquiry will refer to Australia's APEC commitments and its obligations under the WTO."
An Associate Commissioner, selected on the basis of business experience, will be appointed to the inquiry.
The Government also announced the formation of an Automotive Council by restructuring and expanding the focus of the present Automotive Trade Council. The new Council will comprise major automotive industry participants and will report on pertinent issues concurrent with the inquiry. The Automotive Trade Council presently advises the Government on matters affecting trade for the industry and will continue to do so in its new expanded role. The Council will be co-chaired by the Minister for Industry, Tourism and Resources and the Minister for Trade.
"I will be looking to the Automotive Council to provide an industry perspective on the issues. The automotive sector is a major Australian industry, employing about 50,000 people and generating about $4.6 billion in exports. The Government is committed to developing an internationally competitive automotive sector in Australia. " Mr Macfarlane said.
The Productivity Commission will commence the inquiry in January 2002. The terms of reference and the membership of the inquiry will be released at that time. The Commission will be required to report its findings and recommendations to the Treasurer within six months.