The Australian Government has requested the Industries Assistance Commission to report on means of implementing its policy of a guaranteed market share, equal to 80% of the total market by volume, for domestic producers of passenger motor vehicles. This paper examines some of the costs associated with this policy and concludes that the consumer cost is of the order of $170 per family per annum. If import quotas are to be imposed, then a preferred means of implementing the Government's policy is via the sale of quotas, compared with the present system under which quotas are allocated as gifts.
Industries Assistance Commission, 1976b, Report on Motor Vehicles - Extension of Import Restrictions, (Australian Government Publishing Service, Canberra).
7.
Industries Assistance Commission, 1976c, The Australian Market for Passenger Motor Vehicles, Revised Projections, (Industries Assistance Commission, Canberra).
8.
Swan, P.L., 1972, General Motors-Holden's and the Australian Automobile Industry in Economic Perspective (Ph.D. Thesis, Monash University, Melbourne).
9.
Tullock, G., 1967, Towards a Mathematics of Politics (University of Michigan Press, Ann Arbor).
