No figures on car industry spend: Abbott

The federal government has refused to put a figure on how much its about-face on car industry support will cost.

Australian Prime Minister Tony Abbott

Australian Prime Minister Tony Abbott (AAP Image/Rebecca Le May)

Tony Abbott can't put a final figure on how much public money will be restored to the car industry following a government backdown.

Industry Minister Ian Macfarlane announced in Adelaide that the government would not proceed with legislation to cut $500 million from a scheme designed to support the car making and auto components industry.

But it is unclear how much of this money will be spent ahead of the three major car makers closing their production by the end of 2017 and how much will be banked as a budget saving.

The prime minister told reporters in Kalgoorlie that the scheme would "continue to operate as legislated" but would wind down as the car industry shrank.
"The decision not to proceed is a perfectly sensible one given ... the fact that as the car industry winds down there is a natural term to this scheme anyway."
"How much is spent under the scheme will depend entirely on applications made to the scheme and the ordinary operation of the scheme," Mr Abbott said.

One estimate puts the maximum total spend at $118 million, but AAP was seeking figures from Mr Macfarlane's office.

Mr Macfarlane's media release confirmed the budget would still benefit despite the change of policy.

Most of the savings from the program would still be realised, based on production volumes as Ford, Holden and Toyota wind down production based on their independent decisions to end domestic car manufacturing, the statement said.

Mr Abbott confirmed the decision did not go to cabinet, but had been discussed at the cabinet's expenditure review committee.

"The decision not to proceed is a perfectly sensible one given ... the fact that as the car industry winds down there is a natural term to this scheme anyway."

 AMWU national vehicle secretary Dave Smith said it was a huge win for workers in SA and Victoria.

But he called for the scheme to be kept going after 2017, with funds directed to after-market component suppliers and the truck and bus sector.
"They're just changing their tactics because they're worried about their own jobs."
Opposition Leader Bill Shorten said the Coalition had not changed its mind on car industry funding.

"They're just changing their tactics because they're worried about their own jobs," he said.

Liberal backbencher Sharman Stone, who was unable to convince Mr Abbott to support her local fruit cannery SPC Ardmona, said she hoped the policy change went further.

"I'd hope that other sectors like the food manufacturing industry will be recognised," she said.

Greens deputy leader Adam Bandt said the budget saving should go into making electric cars.


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Source: AAP


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