Geography report- Car Tarriff Cuts In South Australia
Most teenagers these days think sport shoes like "Nike" Or "Reebok" are too expensive. Parents also think
cars cost too much. The Federal Government is about to consider slashing a special charge known as a
tariff . The tariff puts a percentage on products like shoes and cars that come from overseas. Most people
will agree with the government to slash this special charge because cars and stuff from overseas will be
cheaper but actually this issue is stirring up a serious debate. This essay will explain the decisions that
have been taken recently concerning the future of car tariffs in Australia and the effects on these decisions
have upon existing patterns of employment and population within Australia.
Car industry workers have been against tariff cuts , to save their factories and thousands of their jobs. A
major report recommended the cuts go ahead, to make cars in Australia cheaper. The Prime Minister, John
Howard had to steer a course through all the arguments to make his decision, one not everyone was happy
According to the Australian Newspaper on June 5th, The Howard Government has decided to cut car tariffs
from 15% in 2000 to 10% by 2005 after a struggle between its top economic ministers over calls for an
effective tariff freeze. The outcome, which has yet to go to Cabinet, represents a victory for the Treasurer
( Peter Costello ) and a defeat for Mr Moore. Car tariffs are scheduled to drop from 221% to 15% in three
steps of 2.5% by the year, 2000. The meetings yesterday rejected a proposal put forward by Mr Moore on
June 2nd that recommended that the period for reaching the 15% target should be extended five years from
2000 to 2005. To summarise, The Cabinet has decided to accept the basic elements of a fall back option
also raised by the Industry Minister on June 2nd. This proposed that the current arrangements for cutting
tariffs to 15% in 2000 should be maintained, with additional reductions of 1% each year then applying
through to 2005.
Unions that represent thousands of Australian workers, and the Victorian and South Australian
Governments, are fighting to keep tariffs on cars. They're worried that people will buy more imported cars
if they become cheaper, and that companies making Australian ones might go out of business. The effect is
that unemployment on local manufacturing of cars will continue to rise in Australia. Therefore the
decrease in employment in manufacturing (cars) will tend to reduce the metropolitan concentration of
employment and population.
To conclude, the tariff percentage will officially fall as the years progress meaning local car manufacturers
will soon be out of business because of the increasing competition from newly industrialising countries
such as Taiwan, Korea, Malaysia and Indonesia. This will lead to the reduction of the metropolitan
concentration of employment and population in Australia.
Grade Received on Report : B