none

$200m rescue package for car industry

31-08-2010
by 
in 
$200m rescue package for car industry

Labor has announced a $200 million assistance package to revive the embattled Australian car industry.

The funds were set aside under the Government’s economic statement last week.

Industry Minister Kim Carr told ABC News he is consulting with carmakers and associated manufacturers about how best to spend the money.

Senator Carr wants to make it compulsory for commonwealth, state and local governments to use Australian-made cars.

"We're providing support for the supply chain for smaller companies," he told the ABC.

"We're providing support for sales of vehicles, and we want to make sure we have a much larger number of cars put through Australian factories."

Meanwhile, Prime Minister Kevin Rudd has brushed aside the suggestion that the extra funding for the automotive industry is an admission that his government's recent tightening of the fringe benefits tax (FBT) arrangements on cars has damaged the sector.

"The auto sector in Australia employs directly or indirectly about a quarter of a million Australians," he told the ABC’s AM program.

“I do not believe manufacturing is an industry just for the past, it's an industry for the future, Mr Rudd said. "It means that on a case-by-case basis, industry-sector-by-industry-sector, the Government will provide support where necessary.

"I'm a believer in manufacturing's future."

The Coalition has described the package as a “band-aid” solution.

"On the one hand, Mr Rudd takes a baseball bat to the car industry by hitting it with an unprecedented $1.8 billion tax and on the other he gives them back $200 million to try and save them," Opposition treasury spokesman Joe Hockey said.

"The fact is, you can't put a band-aid over a bullet wound."

Opposition Leader Tony Abbott told the ABC’s AM program the Coalition will not accept the Government's $1.8 billion saving made through the FBT changes.

"There's one that we certainly aren't going to accept and that's the $1.8 billion hit on the car industry," Mr Abbott told AM.

Related news & editorials

  1. 15.09.2020
    15.09.2020
    by      In , In , In
    It may be seen as a bit of an irony to suggest that there has never been a much better time for manufacturing business to bask in the glory of public attention, especially during a time of COVID-19 pandemic.
    But according to Chief Executive Innes Willox from peak employer AiGroup, it is a time for... Read More
  2. 15.07.2020
    15.07.2020
    by      In , In
    St.George Chief Economist Besa Deda offers a renewed outlook for the Australian manufacturing sector as the fallout from the coronavirus pandemic continues.
    When COVID-19 hit the world in early 2020, economies were shattered as lockdowns forced social distancing and mass business closures. The... Read More
  3. 15.07.2020
    15.07.2020
    by      In , In , In
    Digitalisation and the acceleration of globalisation over the last two decades has offered Australian customers convenience and greater choice. Many local brands have taken a hit where international goods have succeeded due to their price competitiveness.
    While the COVID-19 pandemic has caused... Read More
  4. 09.03.2020
    09.03.2020
    by      In
    South Australia boasts a highly skilled and educated workforce, a renewed focus on entrepreneurship and innovation, and multi-billion-dollar defence industry contracts.
    The state’s world-class research institutions and universities, an investment in skills and the development of entrepreneurial... Read More