The Daily Telegraph
By: Alison Rehn
Australia's struggling car industry has been given a $6.2 billion injection to green the nation's car fleet and shield thousands of employees from losing their jobs during the current financial crisis. Part of the Federal Government package is a $1.3 billion green car fund to be rolled out over the next 10 years, for companies to build environmentally friendly vehicles.
As new car sales slump, Prime Minister Kevin Rudd said the nation needed a green motor industry that created highly paid and highly skilled jobs for the future.
"In the time of global financial crisis the Government today has taken further decisive action to support Australian industry, to support Australian jobs, because we believe this industry has a future,'' he said.
"Australia needs a green car industry that manufactures fuel efficient, low-emissions vehicles of the future.''
The car package includes $3.2 billion in new funding and includes a $3.4 billion assistance program designed to help companies and workers adjust to the transformation. The program runs from 2011 to 2020.
As well there will be a $10.5 million expansion of the LPG vehicle scheme, that doubles payments to purchasers of new vehicles that are factory-fitted with LPG technology.
The automotive sector is Australia's largest manufacturing industry, directly employing more than 60,000, and it is Australia's largest exporter after mining. A disastrous October had new vehicle sales slump 11 per cent, with 10,000 fewer vehicles sold than in the same month last year. Car companies are offering better deals in an effort to clear the glut of cars on sales floors, with at least one car yard in Sydney offering customers new cars at factory prices plus $1.
The car plan, which has been welcomed by Australia's largest car manufacturers Toyota, Holden and Ford, also confirms a reduction in the automotive tariff to 5 per cent in 2010.
Mr Rudd said the car industry had a key role to play in climate change, and that building a low-emissions economy was the next step in the government's response to the global financial crisis.
The Australian Manufacturing Workers' Union said the Government's plan provided crucial investment for the industry amid global economic unrest.
The Australian Greens called on the Government to back its car industry plan by purchasing more fuel-efficient vehicles for its own fleet, while the Federal Opposition is concerned that by the time the package kicks in, it will be too late.
"The simple fact is, unless the credit bungle is addressed there will be no local car industry,'' opposition industry spokesman Eric Abetz said.