SINCE the 1960s Australian governments have been obsessed with reducing tariffs. This developed out of the high protection policies of the post-World War II years. There were, at the time, good reasons to make industry and agriculture more efficient but times have changed.

If we look at the Cairns Group objectives, a level playing field and free trade for farmers everywhere, laudable in theory, but the major trading partners are not listening.

The US and the EU are subsidising their farmers to the hilt and many efficient Australian farmers are suffering greatly as a result. If we look at the car and clothing and footwear industries they’ll disappear here real soon if the economic rationalists and fanatics of a free market have their way.

Australia cannot reduce tariffs further if other trading blocs don’t play ball. As to the car industry Australia could move rapidly to a new electric car industry, not assembly plants for others, if it were given sunrise industry protection, and the lions share of the $500 million fund set aside for cars.

The $2 billion support for the existing car industry could be gradually transferred to such a sunrise industry as well.

Globalisation of economies could well mean the end of all these industries in Australia because the labour cost in Asian countries are considerably lower. Once gone they are lost. A dose of economic nationalism now could well be in Australia’s long term national interest.

K. Woldring,

Pearl Beach.