John Howard defends his record on tariffs

John Howard's not going to let the car industry assistance debate stand in the way of his legacy. The former PM has hit back at claims his government left the car industry "in limbo" upon losing the 2007 election.

Last week, the Australian Financial Review published a story claiming Howard had not decided whether or not his government would phase out industry assistance for the car manufacturing industry, arrangements he had announced in 2002 to support local manufacturers deal with reduced tariffs.

The paper reported that a Productivity Commission was due to review the car industry assistance package in 2008, but the review never took place. According to former minister Nick Minchin, the Howard government had no plans to end the assistance package by 2015.

Howard seemingly took offence. In a letter to the AFR published today, Howard defends his legacy on car manufacturing assistance, claiming his government laid out a detailed 13-year plan for the car industry to cope with declining tariff protection, including a clear assistance termination date.

"The car industry could scarcely complain that it had been left in the lurch, and it did not," Howard writes. "By contrast, it welcomed the clarity and predictability of the government's policy announcement.

"My government promised a further Productivity Commission inquiry in 2008. The newly elected Rudd government did not hold this inquiry." 

Howard's defence comes as Tony Abbott fights off car industry lobbyists with his plans to axe $500 milllion worth of industry subsidies if elected.

Car industry assistance is especially personal for Howard, given he announced the package in the face of his own personal beliefs: the former PM was opposed to such an assistance scheme during his time as a Fraser government minister.