Tariffs holding back importers 10:09am 4.04.08

The Federal Government paid out about $15 billion in industry assistance in the last financial year, estimates the Productivity Commission.

Commission chairman Gary Bank believes financial assistance, such as tariffs, benefits certain industries and disadvantages others, especially importers who are forced to pay a higher, artificial amount for goods.
 
Bank says areas such as drought relief, defence procurement and renewable energy need to be reviewed. "Drought relief has increased enormously in recent times and farmers have been doing it tough, but it is time to look at that in the context of global warming and so on to see if we've got the right arrangements there."
 
This will ensure that taxpayers, and the general community, receive value for money from government support. "At a time of budgetary constraint and tight labour markets we need to be sure that that support for industry has good rationale and is providing a pay-off to the community," he said.