Australian Government to Create $89 Million Fund For Affected Holden Employees
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.
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Ooops looks like my edit function isn't awake yet
Here's an interesting link from one of our economic/finance sites. It shows the position of the current Australian government. It is 100% correct. Hopefully other governments around the world see the light as well. Subsidising/protecting under performing industries should be stopped. Globally governments should start to challenge large corporation demanding handouts as this money is coming from hard working people. http://www.businessspectator.com.au/article/2013/12/19/industries/end-road-good-money-after-bad
@ BAfO ...As we mentioned yesterday, politicions rarely do the right thing. They base their policy decisions, on what they think will sell to the electorate. Its called democracy. As they say "far from perfect, but better than the alternative".
From my research I'm going to back Robert Ryan on this. GM is going to move Commodore production to the US. GM will finally have a needed quality rear wheel drive platform. The intention of GM has been to offshore production from Australia to low income economies. This has been mentioned numerous times over the years by GM. I have been discussing this very issue now for several years. The Canadians see the writing on the walls and now are going to accept UNECE regulated vehicles. Just like lumber that goes to the US from Canada the US will tax Canada when it needs to, just like any good friend should do;) The Australian vehicle component manufacturers are already looking at Asia as suppliers to make up for some of the loss by GM and Ford offshoring. Australia will come out of this much better than when Canada's auto industry eventually falls over and is 'offshored' back to the US. Mexico is in a safer position. But China will become a supplier globally to all vehicle manufacturers. They already supply many components that are even used in American iconic vehicles like the Mustang. It seems manufacturers' are becoming most loyal to the biggest providers of socialist industrial protection.