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Anderton Does It Again With Tariff Policy

Friday 10th Sep 1999

ACT Party President Sir Roger Douglas today said Jim Anderton's call for a 5% tariff on all goods imported from any country other than Australia is yet another example of a politician looking just one day ahead and ignoring the long-term results of his decisions.

"We must consider the impact of his proposals:

"The primary consequence is that if effective, the proposal would reduce the supply of foreign produced goods. As a result, employment in domestic industries might just expand.

"But, the secondary effect would be higher prices. As a result of higher prices, consumers won't be able to afford some goods. These reductions in spending will mean less output and reduced employment in many areas of activity.

"When secondary effects are considered the impact on employment is clear, it will fall - well done Jim, you've done it again!" said Sir Roger Douglas.

ENDS

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