FCAI unhappy with scrapping of green stimulus programme
Automotive body expresses bitter disappointment at government decision to aid Queensland flood recovery by abolishing Green Car Innovation FundFederal Chamber of Automotive Industries chief executive Andrew McKellar has issued a statement expressing the automotive body's dissatisfaction with the government's abolishing of the Green Car Innovation Fund as one of the moves to help fund recovery from the Queensland floods.
In a statement issued on January 27, McKellar said "It is a bitterly disappointing decision and one which is to be regretted.
"The Green Car Innovation Fund has delivered significant dividends, helping to secure key investment decisions for new models and investment in more environmentally friendly vehicles and technology," he continued.
"The decision to abolish the Green Car Innovation Fund comes as an unwelcome surprise and it sends an adverse signal to international investors responsible for future investment in the Australian industry.
"We urge the Government not to renege on the clear policy framework which it has implemented to secure new investment and jobs in the industry. We urge the Government to re-think this decision."
Announcing the scrapping of the Fund, Innovation Minister Senator Carr said it was "only one component" of the government's New Car Plan for a Greener Future.
"The Fund itself represents an additional commitment of up to $500 million to our manufacturing sector which will leverage approximately $2 billion in total investment. The Australian Government's partnership with the sector will be maintained.
"The New Car Plan is introducing new technologies in Australia at a very rapid rate from hybrid engines, electric vehicles, new fuel systems, batteries and light-weighting.
"The Plan is strengthening the automotive supply chain by underpinning investment, building capability and expanding markets internationally. The industry is providing a critical mass of design, engineering and manufacturing skills fundamental to a diverse and resilient Australian economy.
The industry is producing higher-quality vehicles with high-skilled, high-wage jobs for Australians.
"The centrepiece of this plan is the Automotive Transformation Scheme, which will provide support worth $3.4 billion up to 2020.
"This continued commitment to the Plan and the range of other industry schemes administered by my Department show that we remain committed to ensuring Australian automotive manufacturers produce Australian made vehicles that are easier on the pocket and the environment."
The government statement said that "all contractual commitments and grant offers made by the Government through the Green Car Innovation Fund will be honoured; and applications received as at 27 January 2011 will be processed."
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