This article is from the source 'guardian' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at http://www.theguardian.com/business/2013/dec/06/holden-wont-get-extra-money-says-tony-abbott

The article has changed 2 times. There is an RSS feed of changes available.

Version 0 Version 1
Holden won't get extra money, says Tony Abbott Holden won't get extra money, says Tony Abbott
(35 minutes later)
The prime minister has called on car manufacturer Holden to put up or shut up, and says the Coalition has no plans to reverse its pre-election commitment to cut future taxpayer assistance to the automotive industry.The prime minister has called on car manufacturer Holden to put up or shut up, and says the Coalition has no plans to reverse its pre-election commitment to cut future taxpayer assistance to the automotive industry.
Responding to another round of speculation that Holden will shortly quit its Australian assembly operations, Tony Abbott told 3AW on Friday the government would appreciate clarity from the company: “I do wish that Holden would clarify their intentions because at the moment they've got everyone on tenterhooks.”Responding to another round of speculation that Holden will shortly quit its Australian assembly operations, Tony Abbott told 3AW on Friday the government would appreciate clarity from the company: “I do wish that Holden would clarify their intentions because at the moment they've got everyone on tenterhooks.”
Abbott said there would be no extra money for Holden “over and above the generous support the taxpayers have been giving the motor industry for a long time”.Abbott said there would be no extra money for Holden “over and above the generous support the taxpayers have been giving the motor industry for a long time”.
“We took a policy to the election. That policy includes very substantial ongoing support for the motor industry, we stand ready to make that support available,” the prime minister said.“We took a policy to the election. That policy includes very substantial ongoing support for the motor industry, we stand ready to make that support available,” the prime minister said.
Abbott said his understanding of Holden’s position was the company was in “two minds” about whether to stay in Australia, or whether to follow Ford in pulling up stumps by 2016.Abbott said his understanding of Holden’s position was the company was in “two minds” about whether to stay in Australia, or whether to follow Ford in pulling up stumps by 2016.
Given he faces considerable internal resistance to provide more funds for the carmakers, the federal industry minister, Ian Macfarlane, has been suggesting publicly since October that he might shuffle the existing car industry funding in order to provide some short-term relief for Holden.Given he faces considerable internal resistance to provide more funds for the carmakers, the federal industry minister, Ian Macfarlane, has been suggesting publicly since October that he might shuffle the existing car industry funding in order to provide some short-term relief for Holden.
Macfarlane has been battling pushback from economic ministers, treasurer Joe Hockey and finance minister Mathias Cormann, who are yet to be convinced about the merits of ongoing assistance to automotive manufacturing.Macfarlane has been battling pushback from economic ministers, treasurer Joe Hockey and finance minister Mathias Cormann, who are yet to be convinced about the merits of ongoing assistance to automotive manufacturing.
The industry minister has indicated he could reorganise funds from within the existing Automotive Transformation Scheme. The ATS runs from 1 January 2011 to 31 December 2020 and includes capped assistance of $1.5bn from 2011 to 2015; capped assistance of $1bn from 2016 to 2020; and uncapped assistance of approximately $847m.The industry minister has indicated he could reorganise funds from within the existing Automotive Transformation Scheme. The ATS runs from 1 January 2011 to 31 December 2020 and includes capped assistance of $1.5bn from 2011 to 2015; capped assistance of $1bn from 2016 to 2020; and uncapped assistance of approximately $847m.
Macfarlane has been in touch with Holden executives this week and believes the company is yet to make a final call on the Australian business.Macfarlane has been in touch with Holden executives this week and believes the company is yet to make a final call on the Australian business.
Macfarlane told Guardian Australia the government wanted a strong manufacturing sector and a "sustainable car industry."
Abbott's call for Holden to clarify its future comes as the inquiry into the car industry established by his government has only just begun. The Productivity Commission is not due to deliver its interim findings until 20 December and it has until the end of March 2014 to deliver its final report.Abbott's call for Holden to clarify its future comes as the inquiry into the car industry established by his government has only just begun. The Productivity Commission is not due to deliver its interim findings until 20 December and it has until the end of March 2014 to deliver its final report.
Macfarlane said the Productivity Commission would complete its current work. “The government has made clear from day one the timetable for its response, and neither Holden nor Toyota have raised any concerns about that timetable. Consultations are continuing in good faith with Australian car makers, the components industry and workers."
“These consultations will continue as the Productivity Commission prepares its interim findings, ahead of a full report next March, and a government response by mid 2014.”
The managing director of Holden, Mike Devereux, is not due to give evidence to the PC inquiry until next Tuesday, 10 December, although the carmaker has made a written submission which says that continued industry assistance is needed to win $1bn in investment needed to keep its Australian manufacturing operations open after 2016.The managing director of Holden, Mike Devereux, is not due to give evidence to the PC inquiry until next Tuesday, 10 December, although the carmaker has made a written submission which says that continued industry assistance is needed to win $1bn in investment needed to keep its Australian manufacturing operations open after 2016.
A Holden spokesman has refused to comment on the most recent ABC report quoting unnamed senior Abbott ministers saying that a decision has already been made for Holden to stop making cars at its Adelaide plant: “We do not respond to speculation. Our discussions with government are continuing.”A Holden spokesman has refused to comment on the most recent ABC report quoting unnamed senior Abbott ministers saying that a decision has already been made for Holden to stop making cars at its Adelaide plant: “We do not respond to speculation. Our discussions with government are continuing.”
The South Australian secretary of the Australian Manufacturing Workers Union, John Camillo, said Devereux had addressed workers at the Adelaide assembly plant on Thursday, telling them that employees would be the first to hear if any decision was made on the future of the plant.The South Australian secretary of the Australian Manufacturing Workers Union, John Camillo, said Devereux had addressed workers at the Adelaide assembly plant on Thursday, telling them that employees would be the first to hear if any decision was made on the future of the plant.
Devereux has been promoted to a regional management role with General Motors, based in Singapore. But he told Holden workers that he would continue to run Holden at the Australian operation until at least February, when a new appointee takes over.Devereux has been promoted to a regional management role with General Motors, based in Singapore. But he told Holden workers that he would continue to run Holden at the Australian operation until at least February, when a new appointee takes over.
Camillo said he had spoken to the SA premier, Jay Weatherill, who had been told by Holden that no decision had been made to shut the plant.Camillo said he had spoken to the SA premier, Jay Weatherill, who had been told by Holden that no decision had been made to shut the plant.
But the union leader said he walked the factory floor early Friday morning and that workers were "pretty emotional" about the latest speculative reports quoting an unnamed senior Coalition minister saying that Holden has already made a decision to shut the plant. He said senior figures in the Abbott government appeared to want GM to make a decision, allowing them to argue "hang on, GM left of its own accord”.But the union leader said he walked the factory floor early Friday morning and that workers were "pretty emotional" about the latest speculative reports quoting an unnamed senior Coalition minister saying that Holden has already made a decision to shut the plant. He said senior figures in the Abbott government appeared to want GM to make a decision, allowing them to argue "hang on, GM left of its own accord”.
ACTU secretary Dave Oliver called for urgent action from the government, warning that the PC inquiry could turn into an inquest into the death of the local car industry.ACTU secretary Dave Oliver called for urgent action from the government, warning that the PC inquiry could turn into an inquest into the death of the local car industry.
Shadow industry minister Kim Carr has meanwhile urged the government to desist from a “factional fight” and focus on agreeing on a plan to shore up Holden. “We understand that no decision has yet been made by GM Holden, however it is on a knife’s edge.”Shadow industry minister Kim Carr has meanwhile urged the government to desist from a “factional fight” and focus on agreeing on a plan to shore up Holden. “We understand that no decision has yet been made by GM Holden, however it is on a knife’s edge.”
Car industry sources say that Holden's parent, the US auto giant General Motors, has noted the government's lukewarm stance to its Australian presence, and that the parent is leaving it to local management to try to put in place a survival package.Car industry sources say that Holden's parent, the US auto giant General Motors, has noted the government's lukewarm stance to its Australian presence, and that the parent is leaving it to local management to try to put in place a survival package.
While there is opposition to continued taxpayer assistance to the car industry among the government's economic dries, there is strong support among state-based Coalition MPs in South Australia and Victoria.While there is opposition to continued taxpayer assistance to the car industry among the government's economic dries, there is strong support among state-based Coalition MPs in South Australia and Victoria.
The car industry supports about 45,000 direct jobs, with proponents arguing that it sustains about 200,000 jobs overall.The car industry supports about 45,000 direct jobs, with proponents arguing that it sustains about 200,000 jobs overall.
The closure of Holden's assembly plant in Adelaide would be a massive blow to the SA economy and there is a state election in mid-March at which the Coalition is keen to oust the incumbent Labor administration.The closure of Holden's assembly plant in Adelaide would be a massive blow to the SA economy and there is a state election in mid-March at which the Coalition is keen to oust the incumbent Labor administration.
Victoria has a state election in November 2014, while massive job losses in the car industry would also colour the next federal election due in 2016.Victoria has a state election in November 2014, while massive job losses in the car industry would also colour the next federal election due in 2016.
Our editors' picks for the day's top news and commentary delivered to your inbox each morning.Our editors' picks for the day's top news and commentary delivered to your inbox each morning.