Your say: Car industry funding 172

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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?

Tell us your thoughts below.

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  1. Are not the contracts for these car companies already decided for overseas? Will that change? Will all those people still have jobs????

    1 REPLY
    • To be perfectly honest with you , who gives a dam about overseas jobs , we need jobs in this country. You go out and try to get a job in Qld. There are no jobs to be had at any age but particularly older workers.

  2. no direction because all the shite policies were rejected by the people. Now they have no clue what to do so they TRY to go back to what was. Yep …. too little too late. Bring on an election.

  3. Is it fair for the Gov to have to continually prop up busnesses who aren’t viable anyway!

    2 REPLY
  4. I would hold your breath over Holden s. It’s not just that holden its all the other subsidiaries that are involved in the process.

  5. Now the Aussie dollar is falling the car industry may be more viable. Why not prop it up I bet what ever overseas model car you buy is built using some government money in the country of origin. There were a lot of workers going to lose jobs. All this talk about national security is pointless if we have no industry able to manufacture tanks, plane, submarines if a war breaks out. This has all been one of those exercises where the Libs know the cost of everything and the value of nothing. Jobs and industry have a value to the country beyond the $ cost.

  6. Why do we have to give money to businesses which aren’t viable? Holden and Ford continuously made big cars for years which weren’t wanted by the majority when other companies opted for smaller vehicles which were economical to run. These companies should have seen what was happening to the car industry instead of relying on the government to bail them out. I am sorry for those who are losing their jobs, but it isn’t the government’s fault. Companies have to be viable. Maybe another more savvy car company will come here in the future.

    2 REPLY
  7. What will this achieve? they have already destroyed the car Industry in Australia and will put thousands out of work..

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