Here we are shown that Australian car manufacturing would collapse without the government. It might as well be U.S.S.R. Car Co.
Instead of asking WHY it would collapse without a constant bail out (that’s all a subsidy really is), they basically say – that’s how it is. One substantial reason manufacturing is not economically viable is the globalisation we signed up to. You are within national borders – but the corporations who claim they are people like you and me do not have to adhere to those borders, therefore they are able to exploit slave workers. The corporations/companies who exploit the slavery can sell their slave goods at a much lower price than if it was manufactured in Australia/America/UK etc… This forces the hand of the companies not using the slavery. They cannot remotely compete on price so – they are left with a choice, go to the 3rd world and exploit slaves too – or beg for subsidies from big daddy government.
THE federal opposition is rethinking its plan to cut $500 million from car industry assistance as a new political consensus emerges about the need for taxpayer subsidies to protect Australian manufacturing jobs.
The opposition’s industry spokeswoman, Sophie Mirabella, and resources spokesman, Ian Macfarlane, finalised a review of manufacturing policy for the Coalition leader, Tony Abbott, late last year.
The Herald understands it recommends that the Coalition review its plan to cut $500 million from the Automotive Transformation Scheme, saying continued subsidies should require long-term investments from the carmakers for models with export potential.
Economists have challenged the efficiency of car industry subsidies. Before the 2010 election the Coalition raised similar concerns about ”industry welfare”, promising to reduce car subsidies by 2015. But more recently Mr Abbott has said car-making was absolutely essential to Australia’s status as a ”First World economy”.
The report has yet to be considered by the shadow cabinet, and a decision to reverse the $500 million cut would add to the Coalition’s already difficult job of finding billions of dollars in savings to pay for its policies without the government’s carbon or mining taxes.