Industry assistance and restructuring
Industry policy and assistance issues took up a considerable amount of Cabinet’s time during
1976. The textile, clothing and footwear industry was a particularly difficult problem because
it employed large numbers of relatively unskilled workers, many of them in smaller centres
with limited alternative employment. Despite a 23% decline over the preceding five years,
the industry still employed 129 800 people, but even with tariffs of more than 35% it
struggled to compete with imports. As a temporary measure volume limits had been
imposed on imports, but this had led to trade tensions with other countries, particularly in
Asia. Submission 906 by the Minister for Business and Consumer Affairs, John Howard, sets
out the issues to be faced.
The motor vehicle industry was faced with a substantial shift in consumer preference from
locally built six cylinder cars to four cylinder imports from Japan. Japanese imports had risen
from 7% of total sales in 1972 to 33% in the second half of 1974. Even when subject to a 45%
tariff Japanese imports remained very competitive. In 1975 the Whitlam Government
restricted imports to 20% of the estimated market, to the annoyance of Japan. Submission 58
sets out the history of vehicle manufacture protection measures since 1965.
On 30 March Cabinet made a series of decisions on the future of the passenger car industry
(Decision 397). It confirmed that the 85% average local content scheme introduced by the
Whitlam Government would operate until the end of 1984 and it agreed to Toyota and
Nissan joining it. Tariff rates for imports were set at 35% for fully assembled vehicles and
25% for vehicles assembled locally, although these rates increased by 10% once fully
assembled imports exceeded 20% of the market.
The entry of Toyota and Nissan into the 85% average local content scheme was complicated
by the fact that there was no manufacturer of four cylinder engines in Australia. The
Government attempted to induce the various makers to share the under-utilised Chrysler
engine plant in Adelaide, but in the end production was spread among General Motors,
Toyota, Nissan and Chrysler, with Ford continuing to import four cylinder engines
(Decision 984).
Selected documents
Submission 906, ‘Industries Assistance Commission Inquiries on Footwear,
Clothing and Textiles’
89
Submission 58, ‘Motor Vehicle Policy – Japanese Implications’
100
Decision 397, ‘Submission 177 – Assistance to the Passenger
Motor Vehicle Industry’
114
Decision 984, ‘Submission 411 – Motor Vehicle Policy –
4-Cylinder Engine Production and Related Issues’
121
88
1976 CABINET RECORDS – SELECTED DOCUMENTS
Submission 906, ‘Industries Assistance Commission Inquiries on Footwear, Clothing
and Textiles’ [A12909, 906]
1976 CABINET RECORDS – SELECTED DOCUMENTS
89
Submission 906 cont’d
90
1976 CABINET RECORDS – SELECTED DOCUMENTS
Submission 906 cont’d
1976 CABINET RECORDS – SELECTED DOCUMENTS
91
Submission 906 cont’d
92
1976 CABINET RECORDS – SELECTED DOCUMENTS
Submission 906 cont’d
1976 CABINET RECORDS – SELECTED DOCUMENTS
93
Submission 906 cont’d
94
1976 CABINET RECORDS – SELECTED DOCUMENTS
Submission 906 cont’d
1976 CABINET RECORDS – SELECTED DOCUMENTS
95
Submission 906 cont’d
96
1976 CABINET RECORDS – SELECTED DOCUMENTS
Submission 906 cont’d
1976 CABINET RECORDS – SELECTED DOCUMENTS
97
Submission 906 cont’d
98
1976 CABINET RECORDS – SELECTED DOCUMENTS
Submission 906 cont’d
1976 CABINET RECORDS – SELECTED DOCUMENTS
99
Submission 58, ‘Motor Vehicle Policy – Japanese Implications’ [A12909, 58]
100
1976 CABINET RECORDS – SELECTED DOCUMENTS
Submission 58 cont’d
1976 CABINET RECORDS – SELECTED DOCUMENTS
101
Submission 58 cont’d
102
1976 CABINET RECORDS – SELECTED DOCUMENTS
Submission 58 cont’d
1976 CABINET RECORDS – SELECTED DOCUMENTS
103
Submission 58 cont’d
104
1976 CABINET RECORDS – SELECTED DOCUMENTS
Submission 58 cont’d
1976 CABINET RECORDS – SELECTED DOCUMENTS
105
Submission 58 cont’d
106
1976 CABINET RECORDS – SELECTED DOCUMENTS
Submission 58 cont’d
1976 CABINET RECORDS – SELECTED DOCUMENTS
107
Submission 58 cont’d
108
1976 CABINET RECORDS – SELECTED DOCUMENTS
Submission 58 cont’d
1976 CABINET RECORDS – SELECTED DOCUMENTS
109
Submission 58 cont’d
110
1976 CABINET RECORDS – SELECTED DOCUMENTS
Submission 58 cont’d
1976 CABINET RECORDS – SELECTED DOCUMENTS
111
Submission 58 cont’d
112
1976 CABINET RECORDS – SELECTED DOCUMENTS
Submission 58 cont’d
1976 CABINET RECORDS – SELECTED DOCUMENTS
113
Decision 397, ‘Submission 177 – Assistance to the Passenger Motor Vehicle
Industry’ [A13075, 397]
114
1976 CABINET RECORDS – SELECTED DOCUMENTS
Decision 397 cont’d
1976 CABINET RECORDS – SELECTED DOCUMENTS
115
Decision 397 cont’d
116
1976 CABINET RECORDS – SELECTED DOCUMENTS
Decision 397 cont’d
1976 CABINET RECORDS – SELECTED DOCUMENTS
117
Decision 397 cont’d
118
1976 CABINET RECORDS – SELECTED DOCUMENTS
Decision 397 cont’d
1976 CABINET RECORDS – SELECTED DOCUMENTS
119
Decision 397 cont’d
120
1976 CABINET RECORDS – SELECTED DOCUMENTS
Decision 984, ‘Submission 411 – Motor Vehicle Policy – 4-Cylinder Engine
Production and Related Issues’ [A13075, 984]
1976 CABINET RECORDS – SELECTED DOCUMENTS
121
Decision 984 cont’d
122
1976 CABINET RECORDS – SELECTED DOCUMENTS