none

Is it the end of the road for auto industry subsidies?

31-08-2010
by 
in 
Is it the end of the road for auto industry subsidies?

The federal government is considering giving GM Holden a “blood transfusion” of funding before the end of the year in the absence of a long-term industry plan.

Mr Macfarlane met last week with Holden general manager Mike Devereux at the company's manufacturing plant in Adelaide to begin talks on assistance under a Coalition government.

He warned that Holden must brace for an end to taxpayer assistance.

Holden is seeking a new taxpayer-funded subsidy to support a $1 billion investment in two new vehicle models at the plant, in addition to $275m committed last year.

Mr Macfarlane prefaced talks by warning "there is not a lot of money" on offer, and said that if Cabinet approved extra financial assistance for the carmaker, it would be the last hand-out on his government's watch.

"I want to say to the industry, there will be one shot at this," he said. "We can't go on supporting this industry.”

Mr Macfarlane says Holden must increase its exports if it wants to secure more long-term government assistance.

“They have got to become internationally competitive."

To be sustainable, the company would have to lift exports from the current level of 17 per cent to 30 per cent, Mr Macfarlane said.

But the opposition and the unions claim that such an increase is unrealistic.

Industry Shadow Minister Kim Carr says without a drop in the dollar such an increase is not possible.

It is understood the government is close to finalising the terms of references for a Productivity Commission inquiry into Australia’s car manufacturing industry.

An interim report is expected before the new year.

Related news & editorials

  1. 05.07.2018
    05.07.2018
    by      In
    Technology developed at CSIRO has led to the release of a novel copper ore sorting analyser that promises to dramatically reduce energy and water use by copper miners. The novel analyser is being brought to market through NextOre, a new company created by RFC Ambrian, Advisian Digital and CSIRO.... Read More
  2. 05.07.2018
    05.07.2018
    by      In
    Following its successful export and installation of 12 of its flagship high-power chargers for electric vehicles in Germany as part of the Ionity network, Ionity has now chosen Brisbane company Tritium as its technology partner for the construction of a further 100 high-power charging sites across... Read More
  3. 02.07.2018
    02.07.2018
    by      In
    The Waste Management Association of Australia (WMAA) is urging the Federal Government to heed the findings of the Senate report produced last week by the Environment and Communications References Committee.
    The report, “Never waste a crisis: the waste and recycling industry in Australia”, makes no... Read More
  4. 02.07.2018
    02.07.2018
    by      In
    Eaton has expanded Australian market coverage for its electrical distribution and motor control component ranges with the signing of a long-term distribution deal with Colterlec.
    According to Dan Agnew, General Manager Power Distribution ANZ at Eaton, the new arrangement will “allow Eaton to expand... Read More