Liberty Australia

Tariffs & Protection

Protection of a Nations Industries & Farmers with the use of Tariffs is essential.
The alternative is economic devestation, to allow cheap imported goods to displace the home grown products is sheer lunacy.
How on earth can anyone attempt to treat unequal countries equally with free trade?
Tariffs allows the local product to compete with imported items with no loss to the Nation!

It is often said by shallow thinkers that a Tariff prevents you buying cheaply, and of course this is true, but... there are many hidden costs and losses to the Nation with cheap imports.
The old saying, There is no such thing as a free lunch is very true.

An item made overseas employs foreign people instead of Australians.
Those Australians displaced from their jobs may now require Centrelink payments.
Once you import an item, the taxes normally paid by workers and employers in Australia will be foregone.
The workers and manufacturer in the producing country contribute zero towards the Australian Economy without Tariffs, so if you forgo those normal taxes you will need a replacement tax such as a GST which of course is a further burden on the consumer.
When a country imports more goods than it exports, it must send more money out of the county thereby increasing the Foreign Debt, that exported money will be removed from circulation in Australia thus the benefit has also been moved offshore.

One must always remember that Economists and Politicians do not recieve their remuneration by employing large numbers of people, they act in the best interests of the rich Globalists who wish to expand their domination over world markets.
The manufacturers who do or did employ large numbers of Australians pointed out in no uncertain terms that they would not survive the Senator Button industry elimination plan. The meagre few who were able to survive with reduced profits and reduced numbers of staff employed are a sorry tribute to the thousands of lost factories that once employed Australians by the hundreds of thousands.

Standard commonsense should tell anyone that a country will never by viable when you allow most of your home industries to be eliminated by cheap imports from countries with a much lower standard of living, if you are used to getting $10 an hour for your labour, there is no way that you will ever compete with workers that get $5 for a whole days work, or with a prison population who may not recieve payment at all.

There is not one country on earth that has benefited from so called Free Trade! How can I be sure of that you may ask, because I have read in the 1996 CIA Factbook that apart from four lucky countries, the rest are buried in endemic debt. The real beneficiaries are the moneyed Globalists that have cornered the trade and transport markets worldwide, where they have created debtor Nations that must borrow heavily to fund jobs for citizens at less than break even values.

Free Trade is now so ridiculous that Australia and New Zealand both export the same dairy products to each other in a frenzy of pure economic folly, the same goods must sometimes pass each other in Bass Strait.

Simple Example of some not so obvious costs or losses without Tariffs........
Imagine a manufacturer in Australia that produces quality Toasters that wholesale at $28:00, he employs a 100 workers including production, office staff, despatch, etc.
A days production is 500 Toasters, a simplified breakdown of the monetary makeup of the toaster production would be.....
Wages
 Wages $16  $8000 Daily  $2,000,000 Annually
 Profit $5  $2,500  $625,000
 Components $3  $1,500  $375,000
 Advertising $1  $500  $125,000
 Rates $1  $500  $125,000
 Freight $1  $500  $125,000
 Power $1  $500  $125,000

From this production example the following direct taxes will accrue to the Government...
 Company Tax  $625,000 x 30%  = $187,500
 Paye Tax  $2,000,00 x 30%  = $600,000

If now someone imports a toaster from overseas that wholesales for $14, then the Australian factory will be unable to compete and will therefore close its doors.
Now the 100 workers will move from being wage earners to being welfare recipients on $190 per week.
Therefore instead of the Government receiving $787,500 annually from the enterprise, the taxpayer will now be required to pay out $988,000 for welfare payments, the country will be $1,775,500 worse off for not protecting local production.
And then there is the loss to the local companies that once supplied the components, the loss to the power company, and there are the Council Rates that will still have to be met by the owner of the now stagnant property. Further is the loss of the disposable income circulating in the local community.
Without a protective Tariff we have moved the benefits of Taxation offshore where the Enterprise will now advantage some foreign government, that same Enterprise will contribute nothing towards the Australian Economy, therefore the loss of Tax Revenue in Australia will have to be found elsewhere. Conversely it will be necesary to impose Austerity measures on all Australians as well.

Even if a $14 Tariff was imposed on each Imported Toaster, the onus of Taxation/Revenue payment will never be met by the Exporting Country.

Can you see why it has been essential to follow the dictates of the IMF and impose a GST onto the Australia Economy to compensate for all the lost taxes.

This is an incomplete list of Businesses that were once Australian Owned and very viable. The list includes ones that are now owned by Foreigners, and those driven out of business by Tariff loss, and the ones that have been Privatised.

Aeroguard , Ajax , Amscol , Andronicus , Ansett Airlines , Aspro , AV Jennings , Betty Sydney , Billy Tea , Bird's Eye , Brylcreem , BTR Nylex , Bundaberg Rum , Bushells Tea , Buttercup , Carnation , CCs , Chux , Clarks Shoes , Clinic , Coffeemate , Cold Power , Commonwealth Bank , Continental , Coon , Cottees , Decore , Deep Spring , Dettol , Disprin , Drizabone , Dynamo , Energy Brix , ETA , Fab , Fantales , Findus , Flora , Four 'n Twenty Pies , Gatic , Geelong Cement , GFE resources , Gladwrap , Grain Elevator Board , Grosby , Handy Andy , Hazelwood Power , Heinz , Hepburn Spa , Holbrooks , IXL , John Fairfax Group , John West , Kambrook , Kellogs Corn Flakes , King Gee , Kirks , Kit-e-cat , Lan-choo , Life Savers , Lipton , Loy Yang Power Station , Lux , Maggi , Mars bars , Master Foods , Maxwell House , Meadow Lea , Milo , Minties , Miracle , Monbulk , Mortein , Mother's Choice , Mr Sheen , My Dog , Nobby's Nuts , Norman Ross , Nugget , Packard CTA , Pal , Pampas , Pascalls , Perrier , Peters Icecream , Pex , Plume's , Port of Geelong , Port of Portland , Preen , Red Tulip , Redhead Matches , Rexona , Rinso , Robert Timms , Rosella , Seakist , Sidchrome , Solo , Speedo , Sportscraft , Spree , State Bank of Victoria , State Electricity Commission , State Insurance , Stork , Streets , Stubbies , Sunblest , Sunsilk , Swan Beer , TAC: Victoria , Tarax , The Mint:Victoria , Tip Top , Tulip , Twisties , Vaseline , Vegemite , VicRoads , Violet Crumbles , Whiskers , White Wings , XXXX Beer , Yoplait ,
Included in the list could also be the 100,000 farmers displaced from the land.

Consider that Public Utilities such as Telstra, SEC, Gas & Fuel, CommonWealth Bank, VicRoads, VicRail, etc were never required to make a profit, simply the fact of providing employment as well as service is more than enough service to the community.

Also condider that moving the supply base offshore for much of our foodstuff and other essentials of life could severely compromise our survival if or when a major calamity occurs.
Same could be said about defense now that we have exported even right to supply our own munitions.




1999Letter:Tariffs & Global Realities.
2004Tariff (Zero Duty Removal) Amendment
2004AUZZiE POWER "On-line"
2004Queensland Independant Senate Team