Fed: ACTU calls on government to butt out of car industry

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Fed: ACTU calls on government to butt out of car industry

MELBOURNE, Dec 13 AAP - Australia's peak union body today said it was time for thefederal government to stop interfering with the car industry, after more tariff cuts wereannounced.

Prime Minister John Howard today announced tariffs would be cut to five per cent in2010, with another Productivity Commission review to be undertaken in 2008.

Mr Howard unveiled $4.2 billion in taxpayer-funded assistance for the car industryto help it adjust to the next round of tariff reductions.

ACTU president Sharan Burrow said the car industry package was disappointing.

"The case for tariff reductions has not been made when our competitors have barriersto imports at much higher levels," Ms Burrow said.

"The government should now stop trying to stir up industrial relations trouble in thevehicle industry.

"The Howard Government should get out of the way let employers and employees get onwith the job."

Ms Burrow said a comprehensive review of tariffs in the car industry was essentialbefore any further reductions occurred.

Tariffs on imported passenger cars and components will be cut to 10 per cent from 15per cent in 2005, as previously planned.

Mr Howard said tariffs would be cut again in 2010, to five per cent, despite Australia'scommitment to the APEC target of zero tariffs by 2010.

AAP bja/jlw/sek/de

KEYWORD: TARIFFS ACTU