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Publisher & Editor-in-Chief
Leo Simpson, B.Bus., FAICD
Editor
Greg Swain, B.Sc.(Hons.)
Technical Staff
John Clarke, B.E.(Elec.)
Robert Flynn
Rick Walters
Reader Services
Ann Jenkinson
Advertising Manager
Brendon Sheridan
Phone (03) 9720 9198
Mobile 0416 009 217
Regular Contributors
Brendan Akhurst
Garry Cratt, VK2YBX
Julian Edgar, Dip.T.(Sec.), B.Ed
John Hill
Mike Sheriff, B.Sc, VK2YFK
Philip Watson, MIREE, VK2ZPW
Bob Young
Photography
Glenn A. Keep
SILICON CHIP is published 12 times
a year by Silicon Chip Publications
Pty Ltd. A.C.N. 003 205 490. All
material copyright ©. No part of
this publication may be reproduced
without the written consent of the
publisher.
Printing: Macquarie Print, Dubbo,
NSW.
Distribution: Network Distribution
Company.
Subscription rates: $54 per year
in Australia. For overseas rates, see
the subscription page in this issue.
Editorial & advertising offices:
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wood, NSW 2102. Postal address:
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PUBLISHER'S LETTER
Tariff reductions on cars
may not be wise
As this issue goes on sale, we can expect that
the Government will be placed under intense
pressure to speed up tariff reduction in the car
industry. Just before Christmas, the Produc
tivity Commission brought down a majority
report that urged tariff reduction from 15%
in 2000 to just 5% in 2004. Presently, tariffs
on imported cars are at a level of 25% and to
reduce them to 5% in less than 10 years is a
huge reduction in anyone’s language.
Many economists would argue that Australia should proceed down the path of
tariff reduction for all economic activities and in terms of hard financial figures,
they are undoubtedly right. When tariffs are removed or reduced, the products
affected invariably are reduced in price and consumers are better off. But will
we be better off overall?
We have already seen this happen with electronics consumer products and
there is no doubt that they are much cheaper now than they would have been
if tariffs had been maintained. The problem is that while all those goods are
undoubtedly cheaper, we have also lost a great number of skills that went with
the manufacturing and servicing of those electronic products. Not only the
skills but most of the jobs have been lost and in many cases the people directly
affected have never got equivalent satisfying employment again, if they have
managed to get jobs at all.
The same thing will happen as tariffs are reduced on cars. New cars and sec
ondhand cars will become cheaper. But then we will lose many thousands of
jobs in manufacturing, not only in the car industry itself but in all of the support
industries, and that includes some electronics manufacturing, surprising though
it might seem. But it will go much further than that. If new cars are cheaper,
then it will become uneconomic to repair cars. So we will inevitably lose huge
numbers of jobs in repair shops – not only mechanical repairs but in smash
repair shops as well. Many more cars will simply be written off and sent to the
crushers after even quite minor accidents.
It is fairly safe to say that most of the people working now in the car manufac
turing and repair industries would never get equivalent jobs again. And youth
unemployment which is unacceptably high now, will go even higher.
No, while we would all like to buy cheaper cars and enjoy the safety and
driving pleasure that a new car entails, we will be paying a huge social price if
we go down that road too rapidly. Sure, we are paying a high price to effectively
subsidise a lot of jobs in the car industry. But people and the general community
are always better off if they are gainfully employed instead of being on the dole.
Let us hope that the history of the Australian electronics consumer industry
is not repeated in the car industry.
Leo Simpson
ISSN 1030-2662
WARNING!
SILICON CHIP magazine regularly describes projects which employ a mains power supply or produce high voltage. All such projects should
be considered dangerous or even lethal if not used safely. Readers are warned that high voltage wiring should be carried out according to the
instructions in the articles. When working on these projects use extreme care to ensure that you do not accidentally come into contact with
mains AC voltages or high voltage DC. If you are not confident about working with projects employing mains voltages or other high voltages,
you are advised not to attempt work on them. Silicon Chip Publications Pty Ltd disclaims any liability for damages should anyone be killed
or injured while working on a project or circuit described in any issue of SILICON CHIP magazine. Devices or circuits described in SILICON
CHIP may be covered by patents. SILICON CHIP disclaims any liability for the infringement of such patents by the manufacturing or selling of
any such equipment. SILICON CHIP also disclaims any liability for projects which are used in such a way as to infringe relevant government
regulations and by-laws.
Advertisers are warned that they are responsible for the content of all advertisements and that they must conform to the Trade Practices Act
1974 or as subsequently amended and to any governmental regulations which are applicable.
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