Hockey says industry grants a waste of taxpayers' money

[kaniSS]

Originally Posted by pursuit2359

I sense that Tony Abbott will be invisible for the next few days so that he doesn't have to comment on this...

Yeah he's to busy fighting fires in NSW, As a volunteer. How many fires have you assisted with?

[Bossxr8]

Originally Posted by bobthebilda

I am sure Joe Hockey (and myself), would love to know where those 50,000 job losses would come from. Only the three manufacturers and their suppliers are able to get government assisstance in which he speaks of. Those three manufacturers only made roughly 230,000 cars last year. At an average selling price of less than $25,000 per car (yes i know territories sell for well over $40,000 but a large number of the cars made last year were export camrys (they leave our shore for less than $20,000) and cruzes (which base models wholesale for less than $16,000)). So at 230,000 (cars) divided by 50,000 (workers) = 4.6 (cars) per worker x $25,000 = $115,000 of productivity per worker. But lets also subtract the generally accepted belief that 30% of the cars made in Australia come from imported parts. Thus $115,000 minus 30% = $80,500 of productivity per worker.

You've either made a huge mistake with the employment levels these monies support, or you have made a great case that these workers are the least productive workers the world has ever bred.

A lot of parts suppliers also make parts for export, and losing their local supply contracts could result in them shutting shop.

[dmat2391]

Originally Posted by bobthebilda

Because its not a seurity issue. The only advantage of having a factory that makes large cars may lie in the chance that the invading army was limited to driving medium cars or smaller (and in todays world that only leaves new zealand). Holdens or Fords plant is no more suited to making modern weapons of war than the local ikea store, nor are the skills of the employees.

I agree it's not the factories, it's the skilled people who "engineer" this stuff and can quickly transfer to a new need,that are lost in decisions like this.
We often forget we're one of the few countries in the world that can go from design to finished product in the automotive world. It will not be the case for much longer sadly
Seriously though on another note. a country that imports all it's fuel needs.....where's the smarts in that.
appreciate the difference in opinion though, and the discussion
cheers

[irish2]

Originally Posted by 2011G6E

The trick being that if the car makers know they will just get bailed out no matter what because they whinge about "Aussie jobs" and "Aussie dinki di cars", then why would they ever change the way they do things?

We see the argument used with plenty of other industries that don't get government support and fold up and close shop...why are car makers a special case? So what if we can make cars here...is that a valid reason to keep pouring taxpayers dollars into them to keep them afloat?

If they can't stand on their own two feet and read the market properly, that's their problem. They've always lagged behind the market with what the public actually wants.

There is no other industry that is so heavily subsidised and protected world wide. We get royally shaft with taxes on automobiles from places we supposedly have a "free trade agreement" with. Australia provides a lower subsidy per capita, than any other nation that produces vehicles.

[Rico 110s]

Originally Posted by ivorya

Don't WE elect these Jerks to spend our money??

We don't elect them to put money in the bank and gloat.

You sir have hit the nail on the head, I remember when we were in a surplus, the govt of the time were not spending anything IE: infrastructure, roads, health, etc.
And this was creating a bottle neck in the economy.

As I know its not popular with a lot of people but I would be very happy to see an excise on all imported cars at this time, the funds from this would go to our own Car industry to support it and it would make Australian cars look cheaper, but that wont happen as a lot of people will not like their cheapy cars going up in price, and the Govt of the day will be accused of another tax hike.

[Rico 110s]

Originally Posted by irish2

There is no other industry that is so heavily subsidised and protected world wide. We get royally shaft with taxes on automobiles from places we supposedly have a "free trade agreement" with. Australia provides a lower subsidy per capita, than any other nation that produces vehicles.

If you want to see a Real subsidized Auto industry look no further than the one in the USA,
GM was known as Government Motors and their cheque's were in the Billions.

[monte.b]

Originally Posted by bobthebilda

I am sure Joe Hockey (and myself), would love to know where those 50,000 job losses would come from. Only the three manufacturers and their suppliers are able to get government assisstance in which he speaks of. Those three manufacturers only made roughly 230,000 cars last year. At an average selling price of less than $25,000 per car (yes i know territories sell for well over $40,000 but a large number of the cars made last year were export camrys (they leave our shore for less than $20,000) and cruzes (which base models wholesale for less than $16,000)). So at 230,000 (cars) divided by 50,000 (workers) = 4.6 (cars) per worker x $25,000 = $115,000 of productivity per worker. But lets also subtract the generally accepted belief that 30% of the cars made in Australia come from imported parts. Thus $115,000 minus 30% = $80,500 of productivity per worker.

You've either made a huge mistake with the employment levels these monies support, or you have made a great case that these workers are the least productive workers the world has ever bred.

Well fine close them all down ,put them all on the dole that seems to be your wish ,they are only working class people aren't they ,no doubt you will be safe counting your beans and driving your Porsche