THE SOUTH AUSTRALIAN GOVERNMENT AND THE INDUSTRIES ASSISTANCE COMMISSION

Abstract

Abstract: One frequent source of inter‐governmental conflict within a federation is the different economies of the constituent units, and State governments in Australia have increasingly become aware of the regional consequences of Federal policies in areas such as tariffs. This is of particular concern to South Australia which, compared to other States, has a greater than average reliance on manufacturing industry, especially those industries which depend on a relatively high level of tariff protection. The industrialization of South Australia from the 1930s onward was based on a complex interaction between government and business, and thus in the 1960s when the revitalized Tariff Board and later the Industries Assistance Commission showed that they were committed to lowering the level of tariff protection, the new Premier's Department became the focus of the government's interest in tariff matters. From January 1974, following the creation of the IAC, to 1976 was the high point in the State's involvement in the making of Australian tariff policy, both in terms of the number of inquiries calling for submissions and in the capacity of the government to participate. The staffing and organization of individual departments concerned with tariffs were strengthened, and an interdepartmental Industry Inquiries Screening Committee was established to coordinate government submissions. Since the 1976 Inquiry into Shipbuilding, the government's involvement with the IAC has tapered off, partly as a result of the feeling that the greatest gains are won at the “political” rather than at the “administrative” level Although it is difficult to assess the success or otherwise of the South Australian government's venture into the making of tariff policy, a number of consequences for the State may be identified. The regional point of view was at least placed before the IAC; the State public service was strengthened; the already close relationship between business and government became even more intimate (despite differences in ideology); and some of the crude protectionist views held in the early 1970s have been replaced by a commitment to a long‐term reconstruction of industry.