It has just been announced that the Federal Government are dumping their plans to cut $500 million in funds to the car industry.
The struggling Australian car industry cried out for government support to keep the manufacturing going until 2017, but the government wanted to stop the funds, by proposing to give just $500 million assistance of the $1 billion promised.
The PM is due to visit South Australia later in the week and today, Industry Minister Ian MacFarlane announced the government’s back down. According to the Financial Review, the government had planned to cut $500 million between now and 2017 while another $400 million was to be allocated beyond that until 2020. Mr Macfarlane said the $400 million will disappear with the industry and will be banked as a long-term saving.
Holden, Ford and Toyota are slated to close in 2017, with thousands set to lose their jobs. Mr Macfarlane told the media, “What we are talking about today is not proceeding with the legislation to cut the automotive transition scheme by $500 million”.
They say that making the $500 million available once again will maximise the chances of the car makers staying in Australia rather than closing their doors sooner, but is it too little too late?
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