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NEWS
Government promises auto industry $200 million funding
And public sector fleets will buy solely Australian-made cars, but AAA maintains its rage against FBTSupport for the local automotive industry is back on the federal government's agenda, following a press release issued by Senator Kim Carr today.
Just a day after Prime Minister Kevin Rudd announced the September 7 election date, the Senator (pictured), who is Minister for Innovation, Industry, Science and Research, has found $200 million in the kitty to further the local manufacturing industry. On top of that, the Senator is laying down the law to commonwealth government fleets, insisting that they are to buy Australian-made vehicles only, unless they cannot find a suitable vehicle that is 'fit for purpose' among locally-manufactured cars.
"The automotive industry is vital to Australia's economic future and we are determined to increase sales of locally made cars," Senator Carr said in the press release.
"The Government provides a range of support measures to the automotive industry and today we are adding to that by putting $200 million on the table and introducing a 100 per cent target for Australian made cars for Commonwealth fleets.
"I will continue my discussions with industry as to how this additional funding can best support growth in sales. We are considering a range of options and will release implementation details following further consultation.
"But this is just one part of the package and if the 100 per cent Australian-made passenger motor vehicle fleet target the Australia Government has committed to today was adopted at all levels of government, sales of Australian-made vehicles could increase by over 18,000 units per year. This represents an eight per cent increase on 2012 production volumes.
"The motor vehicle manufacturing industry in this country provides thousands of jobs, billions of dollars in export income and investment and benefits in research and development.
"Our actions will provide crucial ongoing support for an industry that has been under considerable pressure with a high Australian dollar over an extended period and an increasingly competitive global market."
Senator Carr's press release revealed that the government will liaise with state and local government through CoAG (the Council of Australian Governments) to encourage the other two tiers of government to buy Australian-made vehicles.
The move has prompted the Australian Automobile Association (AAA) to denounce the new funding as a ploy to offset the "mistake" of the government's change to the Fringe Benefits Tax.
"This announcement is a clear acknowledgement that the FBT changes have been a mistake and the government is now tying itself in knots trying to buy the car industry’s silence," AAA Executive Director Andrew McKellar was quoted saying in a press release.
"No one should be fooled, this is nothing more than a quick fix which throws taxpayer’s money at a problem that didn’t exist until the FBT changes were announced," he added.
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