Insiders advise against car subsidies

The Pro­duc­tiv­i­ty Com­mis­sion has done the sums on this. The tax­pay­er and con­sumer sup­port to the indus­try was worth about $1.1billion last year. The PC reck­ons that each job ‘saved’ in the indus­try costs us $300,000 a year.

Now two for­mer indus­try leaders—former ben­e­fi­cia­ries of the largesse—have offered the com­mon sense view:

Two top car indus­try fig­ures ear­li­er this month warned that fur­ther hand­outs to automak­ers will be a waste of tax­pay­ers’ mon­ey. For­mer Mit­subishi Aus­tralia boss Gra­ham Spurl­ing, who head­ed a review of the indus­try for the South Aus­tralian Gov­ern­ment, said ‘run­ning up the white flag’ on car­mak­ing was prefer­able to prop­ping up the exist­ing big three man­u­fac­tur­ers with direct finan­cial sup­port. He was backed by anoth­er vet­er­an car indus­try exec­u­tive, Bob Man­ning, who played an impor­tant role in devel­op­ing Mitsubishi’s ill-fat­ed 380 sedan with gov­ern­ment sup­port in South Aus­tralia.”  extract from: The Aus­tralian news­pa­per empha­sis added

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