Car industry wants gov clarity

I'm so tired of hearing this crap from the conservatives that Australia's car industry shouldn't need gov assistance. There was some stupid lady on this new Channel Ten show in the mornings the other day that I caught a bit of. My ears pricked up when she authoritatively announced to all that it was time to end the car industry here because it can't survive without the gov, and we should look to other more profitable ventures. In one sentence she wiped out untold thousands of Australian jobs and livelihoods. 

Now we have the Abbott gov dithering around while the industry wants to know WTF they're going to do? Support them or not? The latest of these industry companies to question the gov about this is Toyota.

“But the real kicker for the industry and Toyota comes through investment in innovation and retooling. That takes major capital expenditure and that’s where government co-investment in the industry is critical,” he said. 

The Coalition Government has refused to table what it is prepared to do in terms of co-investment support under the Automotive Transition Scheme leaving vehicle manufacturers and component suppliers unable to make crucial investment decisions. 

Instead the Coalition has commissioned a Productivity Commission review of the future of co-investment to the industry. The Productivity Commission will provide the government with an interim report on 20th December with a final report not due until March next year. 

Holden, like Toyota, needs to make a decision about a $1 billion investment in its Adelaide plant and get work moving on the refit by the end of the year if it is to build a new generation of vehicles beyond 2016. To make that decision, Holden needs to understand what industry assistance the Federal Government is prepared to commit to. 

With Ford having already announced its departure in 2016, Holden’s departure would likely lead to the collapse of the industry with the loss of over 200,000 jobs and a $20+ billion hit to the Australian economy. more

Well even though the gov isn't doing anything, the unions and Toyota are preparing to sit down and negotiate in good faith. For the unions however, their concern is that the process doesn't turn into management slashing and burning hard won conditions over many years for workers. That it should be about genuine productivity increases by all parties.

“Unlike our competitors in auto in the US, Japan and Korea, our government has a view that you don’t intervene in your currency to artificially devalue it and protect our industry.” 

“So the answer has to be that you provide direct assistance in the form of co-investment to support the industry. There is not an imported car on our roads that has been produced without assistance – they all get it from their governments, every BMW, Hyundai, Jeep, Mazda etcetera.” more

I know the gov's rhetoric before the election was to come out with the insanity that we should cut gov support here when all other car making countries in the world have large amounts of gov support. You might as well just shut down the whole industry now here if that's what the gov is still planning to do.