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Publisher & Editor-in-Chief Leo Simpson, B.Bus., FAICD Editor Greg Swain, B.Sc.(Hons.) Technical Staff John Clarke, B.E.(Elec.) Robert Flynn Rick Walters Reader Services Ann Jenkinson Advertising Manager Brendon Sheridan Phone (03) 9720 9198 Mobile 0416 009 217 Regular Contributors Brendan Akhurst Garry Cratt, VK2YBX Julian Edgar, Dip.T.(Sec.), B.Ed John Hill Mike Sheriff, B.Sc, VK2YFK Philip Watson, MIREE, VK2ZPW Bob Young Photography Glenn A. Keep SILICON CHIP is published 12 times a year by Silicon Chip Publications Pty Ltd. A.C.N. 003 205 490. All material copyright ©. No part of this publication may be reproduced without the written consent of the publisher. Printing: Macquarie Print, Dubbo, NSW. Distribution: Network Distribution Company. Subscription rates: $54 per year in Australia. For overseas rates, see the subscription page in this issue. Editorial & advertising offices: Unit 34, 1-3 Jubilee Avenue, Warrie­ wood, NSW 2102. Postal address: PO Box 139, Collaroy Beach, NSW 2097. Phone (02) 9979 5644. Fax (02) 9979 6503. PUBLISHER'S LETTER Tariff reductions on cars may not be wise As this issue goes on sale, we can expect that the Govern­ment will be placed under intense pressure to speed up tariff reduction in the car industry. Just before Christmas, the Produc­ tivity Commission brought down a majority report that urged tariff reduction from 15% in 2000 to just 5% in 2004. Presently, tariffs on imported cars are at a level of 25% and to reduce them to 5% in less than 10 years is a huge reduction in anyone’s language. Many economists would argue that Australia should proceed down the path of tariff reduction for all economic activities and in terms of hard financial figures, they are undoubtedly right. When tariffs are removed or reduced, the products affected in­variably are reduced in price and consumers are better off. But will we be better off overall? We have already seen this happen with electronics consumer products and there is no doubt that they are much cheaper now than they would have been if tariffs had been maintained. The problem is that while all those goods are undoubtedly cheaper, we have also lost a great number of skills that went with the manu­facturing and servicing of those electronic products. Not only the skills but most of the jobs have been lost and in many cases the people directly affected have never got equivalent satisfying employment again, if they have managed to get jobs at all. The same thing will happen as tariffs are reduced on cars. New cars and sec­ ondhand cars will become cheaper. But then we will lose many thousands of jobs in manufacturing, not only in the car industry itself but in all of the support industries, and that includes some electronics manufacturing, surprising though it might seem. But it will go much further than that. If new cars are cheaper, then it will become uneconomic to repair cars. So we will inevitably lose huge numbers of jobs in repair shops – not only mechanical repairs but in smash repair shops as well. Many more cars will simply be written off and sent to the crushers after even quite minor accidents. It is fairly safe to say that most of the people working now in the car manufac­ turing and repair industries would never get equivalent jobs again. And youth unemployment which is unac­ceptably high now, will go even higher. No, while we would all like to buy cheaper cars and enjoy the safety and driving pleasure that a new car entails, we will be paying a huge social price if we go down that road too rapid­ly. Sure, we are paying a high price to effectively subsidise a lot of jobs in the car industry. But people and the general community are always better off if they are gainfully employed instead of being on the dole. Let us hope that the history of the Australian electronics consumer industry is not repeated in the car industry. Leo Simpson ISSN 1030-2662 WARNING! SILICON CHIP magazine regularly describes projects which employ a mains power supply or produce high voltage. All such projects should be considered dangerous or even lethal if not used safely. Readers are warned that high voltage wiring should be carried out according to the instructions in the articles. When working on these projects use extreme care to ensure that you do not accidentally come into contact with mains AC voltages or high voltage DC. If you are not confident about working with projects employing mains voltages or other high voltages, you are advised not to attempt work on them. Silicon Chip Publications Pty Ltd disclaims any liability for damages should anyone be killed or injured while working on a project or circuit described in any issue of SILICON CHIP magazine. Devices or circuits described in SILICON CHIP may be covered by patents. SILICON CHIP disclaims any liability for the infringement of such patents by the manufacturing or selling of any such equipment. SILICON CHIP also disclaims any liability for projects which are used in such a way as to infringe relevant government regulations and by-laws. Advertisers are warned that they are responsible for the content of all advertisements and that they must conform to the Trade Practices Act 1974 or as subsequently amended and to any governmental regulations which are applicable. 2  Silicon Chip