In the wake of General Motors’ decision to cease all manufacturing operations through Australian subsidiary Holden by 2017, the Australian government has announced that they will create a $100 million AUD ($89 million USD) fund for affected employees.
Australian Prime Minister Tony Abbott is creating the fund and programs related to help transition the nation from heavy industrial manufacturing to “higher value-added” production beyond subsidies. Abbott had this to say about the matter:
In the end, no government has ever subsidized its way to prosperity. This government will be very loathe to consider requests for subsidies. We will be very loathe to do for businesses in trouble, the sorts of things that they would be doing for themselves.
The fund will comprise of $60 million AUD from the federal government, $12 million from the state of Victoria, and the remainder from the state of South Australia. Abbott expects GM will contribute the fund, as well.