Knock down tariff walls: Labor

The union representing car manufacturing workers has opposed federal Labor's support for continued cuts to tariffs in the industry.

Holden last week announced plans to axe 600 jobs at its vehicle assembly plant in Adelaide, prompting calls from South Australian Premier Mike Rann to put on hold tariff cuts on imported cars from 10 per cent to five per cent planned for 2010.

But federal Opposition Deputy Leader Julia Gillard said her party did not believe that rebuilding a tariff regime was the way to go.

"We want a free trading economy, we want to be able to get our goods into foreign markets," Ms Gillard said.

"That means we enter free trade agreements, bilateral, multilateral.

"So I really don't think the future lies in rebuilding tariff walls, it's about being competitive."

Australian Manufacturing Workers Union (AMWU) national secretary-elect Dave Oliver said his union believed there should at least be a review of the plan to cut tariffs.

"You've got a government that talks about free trade," he told AAP.

"Well, when the rest of the world abolishes their tariffs we should look at further reducing ours.

"Until then we should just freeze where we are at ..." he said.

Source: AAP 2007