The government has confidential information showing Holden could stay in Australia until 2025 with an assistance package of less than $150 million extra a year, Labor's Kim Carr says.
The former industry minister has told Fairfax Media that documents, which were drafted by senior officials in the Department of Industry and Innovation, were handed to the Rudd cabinet in July.
They detail that Holden, Toyota and more than 160 car parts makers could stay in Australia for $300 million extra a year.
Senator Carr says he's not willing to breach confidence by revealing dollar amounts agreed by the previous government for the Holden deal.
However, he's told Fairfax it's "less than half" the $300 million extra a year needed to keep the entire industry in Australia until 2025.
Prime Minister Tony Abbott says Holden has already got enough government help and the company has decided to move on.
A Liberal source told Fairfax that to secure the industry until 2025, the government would need to restore $500 million assistance already cut, and front up $300 million a year from 2016.
SA PREMIER ACCUSES GOVERNMENT OF BLAME-SHIFTING
South Australian Premier Jay Weatherill has accused the federal government of blame-shifting amid reports car maker Holden will cease its Australian operations in 2016.
"The future of Holdens is in the hands of the prime minister," he told Sky News on Monday.
Mr Weatherill wants the federal government to restore the $500 million it proposes to cut in automotive sector subsidies.
Labor says the government has confidential documents that show it would cost less than $150 million extra a year to keep Holden in Australia until 2025.
The government is waiting on a Productivity Commission report before deciding its next move.
Mr Weatherill described as "blame-shifting" reports government ministers believe Holden's US parent company already has decided to stop manufacturing in Australia.
Other countries around the world supported their automotive sector far more than Australia, he said.
"In most cases by many more dollars per citizen than we do here in this country."
Federal Environment Minister Greg Hunt says the government's plan to remove the "deadweight" cost of carbon tax would assist Holden.
"We could give Australian vehicles a level playing field," he told reporters in Canberra, adding car exporters in Japan, Korea and Thailand paid no carbon tax.
Mr Weatherill has arranged to meet Prime Minister Tony Abbott in Canberra on Thursday, ahead of a Council of Australian Governments meeting on Friday.
The coalition has promised to cut $500 million from the $1.5 billion pledged in government assistance for car makers until 2015.
Labor had Holden commit to staying until 2022 by promising the industry $300 million a year.
Parliamentary secretary Steve Ciobo denied the government was walking away from the automotive sector.
"There's a billion dollars sitting there in assistance now and a further billion dollars to flow," he told Sky News.
Mr Ciobo questioned why taxpayers should subsidise car makers and not other struggling manufacturers.
Labor frontbencher Bernie Ripoll denied the opposition was prepared to promise blank cheques for the sector.
"What this government has done is torn up a cheque for $500 million."
He warned there would be a devastating flow-on effect if Holden ceased manufacturing in Australia.
Labor MP Rob Mitchell said financial assistance to Holden should not be a "bottomless pit", but should complement new ideas and initiatives to keep the car maker afloat.
The government could help promote Holden as an iconic brand and encourage people to buy Australian-made cars.
"You could do a really good marketing campaign if you wanted to," Mr Mitchell told reporters.
Labor colleague Nick Champion said he was confident Holden would stay in Australia if the government put forward the right suite of policies.
There was no reason to think Holden was planning on pulling out.
"The only people who are saying that are unnamed cabinet ministers, who don't have the guts to come out and put their name to their claims," Mr Champion said.
