Labor wants to review car import tariffs

A Labor government will review plans to cut car import tariffs as part of a plan to save Australia's ailing auto industry amid reports that hundreds of Ford jobs are under threat.

Up to 600 jobs are under threat as the car maker considers closing its engine plant at Geelong because of decreasing demand for larger cars.

Labor's treasury spokesman Wayne Swan on Sunday called on the government to step in to help save the Ford jobs, and indicated a Labor government would be prepared to review the scheduled tariff reduction.

A 10 per cent tariff currently applies to car imports, but the federal government is reducing this to five per cent by 2010.

"We're not making a commitment to stop that reduction in tariffs, but we are happy to sit down and talk with the industry about all of the issues that are challenging them at the moment," Mr Swan told the Nine Network.

"We are certainly prepared to discuss that with the industry, but in the context of a wider plan and a longer term plan for the industry."

Federal Industry Minister Ian Macfarlane has ruled out reviewing tariff cuts on vehicle imports.

"The reality is that by lowering tariffs and providing the industry with $7.3 billion worth of assistance, we have allowed that industry to become internationally competitive," he told ABC Radio.

Ford on Saturday said no decision had yet been made on whether to close the engine plant but the company was looking at changes across its business as the popularity of large cars dipped.

"I think the government needs to sit down with a matter of urgency with Ford and work their way through that problem," Mr Swan said.

"There's no doubt that the motor industry faces very considerable challenges; globalisation is impacting in a way on the motor industry that's got particular challenges for domestic companies.

"There is no instant solution here but in the past we have worked successfully with the car companies to meet that threat and I think we are going to have to do it again."

Source: AAP 2007

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