Another Own Goal in the ‘War on Inflation’
Fighting inflation – with higher tariffs:
The Rudd Government is looking at the possibility of a tariff freeze, in a bid to protect Australia’s remaining car makers, after Mitsubishi confirmed the closure of it’s Australian manufacturing operations with the loss of 930 jobs, according to media reports.
The automaker’s departure is expected to prompt the federal government to carry out a review of subsidies allocated to the industry, as players left in the local automotive sector struggle to cope with increased global competition and a shrinking share of the market.
Car industry tariffs are due to be cut from 10 per cent to 5 per cent by 2010, but manufacturers have asked the government to maintain the current protection and boost funding for the industry.
posted on 06 February 2008 by skirchner in Economics, Politics
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