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SA to push for quick decision on Holden

The South Australian government will push for a quick decision on providing more assistance to car maker Holden.

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An exterior view of the Holden manufacturing plant, Adelaide. (AAP)

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Source: AAP


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The South Australian government will continue to press the federal government and Holden for a quick decision on the future of the car maker.

Premier Jay Weatherill says workers at the Adelaide factory remain in limbo while talks continue on providing ongoing support for the company.

"There's a lot of workers out there and their families that are very keen to know what their future holds," the premier told reporters on Wednesday.

"I will be pressing for the earliest resolution I possibly can to this matter."

Mr Weatherill had talks last week with federal Industry Minister Ian Macfarlane and Holden boss Mike Devereux.

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Those negotiations centred on how much funding Holden requires to commit to building two new cars in Australia from 2016.

The company was promised $275 million last year but was now thought to need as much as $500 million to push ahead with its plans.

Media reports said at last week's talks Holden also told the state and federal governments it would cost as much as $600 million for the company to close Australian operations.

Mr Weatherill would not comment on what he said were confidential negotiations.

But he said he remained firmly of the view that the federal government's planned review of the car industry by the productivity commission, ahead of confirming assistance to Holden, would not provide a satisfactory outcome.

"The productivity commission is likely to recommend we allocate resources to another sector and just allow an industry like this to pass into oblivion," the premier said.

"That's a very worrying suggestion that the future of this industry is put in their hands without some very clear guidelines."

The federal government plans to push ahead with the review, which could take several months, though Mr Macfarlane has indicated an interim report could be available by Christmas.

Mr Weatherill said workers at Holden recently voted to revise their pay and working conditions to save the company money and did so on the basis that they needed to move quickly so that decisions on Holden's future could be finalised.

"They were told it was urgent. I think they expect politicians to get on with resolving this issue on their behalf," he said.


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