Fed: Car imports likely to end trade surpluses

AAP General News (Australia)
12-19-2000
Fed: Car imports likely to end trade surpluses

CANBERRA, Dec 19 AAP - A flood of car imports is likely to dash Australia's strong
performance on the export front.

Imports last month climbed $67 million to a record $11.018 billion, defying a traditional
drop-off in import purchases.

A 42.8 per cent surge in road vehicle imports, coming in at almost $1.4 billion, was
the cause of the big figure which will end the two months of trade surpluses enjoyed by
Australia since September.

"This was the first time in six years that imports rose between October and November,"

Craig James, Commonwealth Securities chief economist said.

The trade front had been the sole source of good economic news for the government which
is holding out against pleas from the building industry to re-work the new tax system.

The Housing Industry Association (HIA) wants the $7,000 grant for new homeowners to
be increased to $15,000 to offset the dramatic fall in new homes being built.

"HIA is disappointed that a fair deal for first home buyers wanting to build or buy
a new home has fallen on deaf ears," HIA managing director Ron Silberberg said.

But Construction, Forestry, Mining and Energy Union (CFMEU) construction division national
secretary John Sutton said similar pleas by the Master Builders Australia (MBA) for government
help were hypocritical.

"The MBA's crocodile tears over job losses in the building industry ... shamelessly
avoid any responsibility for this outcome," Mr Sutton said.

"The MBA has supported the government's introduction of the GST all along, despite
warnings about its negative impact on the construction industry and housing in particular."

Perhaps the call by former National Party leader and now Australian Made Campaign ambassador
Tim Fischer for consumers to buy locally produced Christmas presents is another option
for helping the economy.

AAP sw/cd

KEYWORD: ECONOMY DAYLEAD

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