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Labor car spending 'humiliating': Abbott

Labor plans to pour $500 million into Australia's car manufacturing industry have been described as humiliating and undignified by the opposition.

Holden workers in Adelaide have voted in favour of a new enterprise agreement.
Holden workers in Adelaide have voted in favour of a new enterprise agreement.

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Source: AAP


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Opposition Leader Tony Abbott has described Labor's latest offering of money to Australia's car manufacturing industry as humiliating and undignified.

Prime Minister Kevin Rudd will on Saturday announce $500 million for the sector in a move that has been described by the coalition as panicked policy-on-the-run.

"What a humiliating, what an undignified position for the prime minister of Australia to be in," Mr Abbott told reporters in Perth.

"He sees some bad polls, he knows he's got trouble in his marginal seats so he's charging down the street, waving a blank cheque at the auto industry."

Mr Abbott criticised Labor's funding, citing the government's recent changes to fringe benefit tax linked to vehicle use, which he said would cost the sector $1.8 billion.

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A coalition government would meet with car manufacturers after the September 7 election to discuss the best form of support, Mr Abbott said.

"We are prepared to make a substantial commitment to it but it's got to be a sound, rationally-based commitment with a realistic prospect of success," he said.

Mr Rudd had been "spooked" by recent poll results, prompting him to pour money into car manufacturing, Mr Abbott said.

"Taxpayers of Australia expect the government to be prudent and frugal with their money," he said.

"I am certainly prepared to invest taxpayers' money in good, long-term outcomes for our country, but I'm not going to chase the motor industry down the street holding a blank cheque in my hand in the panicked circumstances of an election campaign."


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