NO.071

FUTURE OF THE TEXTILES, CLOTHING AND FOOTWEAR INDUSTRIES

The Treasurer, the Hon Peter Costello MP, and Minister for Industry, Tourism

and Resources, the Hon Ian Macfarlane MP, today announced the Productivity Commission

had been asked to undertake an inquiry into post-2005 assistance arrangements

for the Textiles, Clothing and Footwear industries.

The announcement delivers on an election commitment by the Government for

the establishment of an inquiry to allow post-2005 assistance arrangements to

be determined well before the expiry of the current TCF assistance package.

“The inquiry will enable the Government to identify options for the future

of the TCF industries, and make decisions to help the sector reach its full

potential,” Mr Macfarlane said.

Mr Costello said although the current TCF industry support program does not

end until mid- 2005, it is important that Government and the sector plan ahead

so investment decisions can be made with some certainty and a clear understanding

of policy settings.

“We appreciate the interest within industry about future assistance arrangements

and have asked the Productivity Commission to examine a wide range of factors

which impact on the TCF sector’s competitiveness,” Mr Costello said.

“We retain our commitment towards lowering Textiles, Clothing and Footwear

tariffs in 2005, as well as our commitments and obligations under APEC and the

World Trade Organisation.”

During the inquiry, the Productivity Commission will identify policy options

consistent with Australia’s trade obligations that would encourage the sector

to adjust to a viable and sustainable competitive position. Each policy option

will be assessed for its impact on TCF industries, workforce, regional Australia,

consumers and economy.

Mr Costello also announced today the appointment of Mr Philip Weickhardt as

an Associate Commissioner to the inquiry.

“As the former head of Orica, Mr Weickhardt brings an extensive understanding

of Australian business, and the manufacturing sector in particular, to the position.”

Mr Macfarlane said the Productivity Commission will soon seek expressions

of interest from parties wishing to participate in the inquiry.

“I urge all interested parties to take part and make submissions,”

he said.

To register interest in the inquiry or find out more, details are available

from Productivity Commission at www.pc.gov.au or phone 02 6240 3239. Terms of

reference for the inquiry are available from the Productivity Commission website.

The Productivity Commission will report its findings and suggested options

by 31 July 2003.

CANBERRA

19 November 2002

Contact: David Alexander

Treasurer’s office

02 6277 7340

Ken Pettifer

Department of Industry, Tourism and Resources

02 6213 7500

ken.pettifer@industry.gov.au