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SA Liberal leader says Holden is safe

South Australian Liberal leader Steven Marshall says Holden will be safe under the new coalition government.

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Source: AAP


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South Australian Liberal leader Steven Marshall has declared car producer Holden safe under a coalition government and says the company's future will be a priority for the new administration.

Mr Marshall said both incoming Prime Minister Tony Abbott and the new government wanted Holden's Australian operations to remain viable.

"Mr Abbott and the coalition want to see Holden stay here in Australia and grow," he told reporters on Monday.

"That's means a sensible, adult plan to ensure the viability of the sector."

Mr Marshall said he planned to have more talks with the new prime minister about the future of the car producer, although the wider question of overall assistance to the auto industry would be subject, as promised, to an inquiry by the Productivity Commission.

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"That will guide how we spend money over the long term," Mr Marshall said.

"That's what has been missing. We haven't had a a long-range plan for the auto sector and the consequences have been dramatic."

In the lead-up to the federal election, Holden not only made 400 workers redundant at its manufacturing plant in Adelaide but also put off the question of its future in Australia until after the poll.

The company plans to have new talks with the incoming government but it still thought to need increased assistance, possibly as much as $500 million, to keep its assembly plant working into the next decade.

Premier Jay Weatherill also wants to discuss the future of Holden with Mr Abbott but said the coalition would need to change its view on industry assistance for the company to have a future.

"The fact that they're not proposing any additional funding will definitely mean Holden does not have a future in Australia," he said.

Independent Senator Nick Xenophon, who was easily returned on Saturday, said his priority would also be to save Holden's Adelaide plant.

"If the new government wants to make an enemy of me for the next six years, they will do so by dudding Holden and I don't think they want to do that," he said.

The coalition's policy is to slash $500 million from automotive assistance, but Senator Xenophon said that money was needed for the industry.


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