All cars are subsidised: union

The Australian Manufacturing Workers Union says every car on the road is subsidised in one way or another.

A general view of a car manufacturing plant

The Australian Manufacturing Workers Union says all cars are subsidised one way or another. (AAP)

All cars on Australian roads are subsidised one way or another, says a union ahead of Holden's appearance before the inquiry into the auto industry.

Australian Manufacturers Workers Union National Secretary Paul Bastian says tens of thousands of jobs and the "nursery" of Australian manufacturing will be lost if the auto industry is allowed to falter.

"There's not a car on the Australian road that is not subsidised in one way or another by the government that manufactures it," Mr Bastian told the Nine Network.

"That's because it's a global race for jobs because they're high skilled, high paying jobs."

The comments echo a submission Holden has already made to the Productivity Commission inquiry into the automotive industry and come ahead of Holden boss Mike Devereux's appearance before the inquiry on Tuesday.

Holden has already told the inquiry it's worth supporting the car maker because it adds value to the economy.

"To be globally competitive with other countries which are providing perpetual assistance to their local automotive manufacturing industries, Australian automotive assistance needs to be set at appropriate levels and be ongoing," Holden said in its submission.

The federal government is considering whether to provide a new line of assistance to Holden or let the market take its course as it did when Mitsubishi closed in 2008.

Mr Bastian said there was a "very strong" case for keeping the car industry alive in Australia.

"There's far too many jobs here at risk," he said.


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Source: AAP


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