Fed: Adjustment programs/tariff cuts need review: Costello

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Fed: Adjustment programs/tariff cuts need review: Costello

CANBERRA, April 16 AAP - Adjustment programs for industries affected by tariff cutshad to be continually reviewed, Treasurer Peter Costello said today.

Mr Costello said the government had to ensure that the full economic benefits fromtariff cuts, and adjustment programs, kept flowing to industry and consumers.

The Productivity Commission this morning recommended tariffs on imported clothes, shoesand textiles should be frozen at 2005 levels for another five years and then most cutto five per cent.

But unions have warned such a move could wipe out up to 70,000 jobs.

Mr Costello refused to directly comment on the commission's findings.

But he said the economy and consumers had benefited from tariff cuts in the textiles,clothing and footwear sectors over the past 20 years.

"The point is that the reduction from a high tariff regime back in the early eightiesto a much more open economy today I think has brought economic benefits for Australia,"

he told reporters.

"I also make the point that I think it's important to have adjustments, adjustmentprograms and we've put in place a very successful program in relation to the motor carindustry.

"We need to keep reviewing these things to make sure that we get full economic benefit."

AAP sw/sb/ph

KEYWORD: TCF COSTELLO