The AMWU has urged the federal government to act with caution and reject the proposal to further slash tariffs in the Bracks Auto review.

While the union welcomed the significant commitment to funding, AMWU National Secretary, Dave Oliver, warned that the industry needed continued support as it adapts to a changing global market.

“The proposal to further slash tariffs would put Australia out on a limb ahead of the rest of the world. Australian’s are sick of having their jobs martyred for the theory of free trade,”, Mr Oliver said.

“At a time when the rest of the world is maintaining and freezing their tariffs, a reduction in Australian tariff protections will have serious trade implications.

“The government’s response must consider the fact that the report was drafted before the latest Doha trade talks collapsed, before the Reserve Bank’s bleak predictions, and before the dramatic nose dive in the US and Japanese economies.

“All of these factors mean the Rudd Government should leave tariff levels unchanged despite the report’s recommendation, and ensure that Australia’s industry is protected from the international trade ramifications.

No other vehicle-building country in the world was considering lowering tariffs on their locally made cars.

“It makes no sense at all to cut tariffs given the collapse of world trade talks, the global financial crisis and the issue of climate change,” said Mr Oliver.

“China, India, Malaysia are not doing it and neither are Canada or the European Union.”

Despite this, Mr Oliver said the AMWU welcomed the remaining recommendations and urged active implementation by the Rudd Government.

“The ACIS fund increase to 2.5 billion is an excellent start, as is the Green Car Fund allocation. The AMWU has consistently called for government investment in the Green Car fund to be increased to $1b to ensure that research and development practices put Australia at the forefront of technology and manufacturing.

“The key issue is that these funds are allocated and used appropriately. Of course, workers’ entitlements must also be secured.

“We cannot let jobs become the casualty of industry restructure, which is why these funds need to be properly directed and reinvested in the industry.