Title of Paper : Geography report- Car Tarriff Cuts In South Australia

Grade Received on Report : B

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.