Rudd announces $3.4 billion car industry rescue package 10/11/2008 11:00:00 AM Prime Minister Kevin Rudd has announced a $3.4 billion lifeline for Australia's ailing car industry.
Mr Rudd and Industry Minister Kim Carr detailed the package during their visit to Melbourne's Automotive Centre of Excellence.
Under the plan, A New Car Plan for a Greener Future, the government has more than doubled the $500 million Green Car Innovation Fund recommended in the Bracks federal inquiry into the industry.
The $1.3 billion fund will be brought forward to 2009 and will run over 10 years.
The reduction of the automotive tariff to 5 per cent will go ahead as planned in 2010.
The plan also includes $116 million to support changes brought about through mergers and consolidation in the components sector.
Another $20 million is targeted to help suppliers integrate into global supply chains.
A $10.5 million expansion of the LPG vehicle scheme will double payments to buyers of new private-use vehicles fitted with LPG technology.
Industry Minister Kim Carr said the package would improve skill levels and competitiveness in the manufacturing sector.
"We won't get it by standing by and watching from the sidelines, you need a plan, you need a vision for the future, you need a partnership with in and above all, you need investment," Senator Carr told the launch in Melbourne.
"The package we are announcing today is all about attracting that investment.
"It's about greening the industry, strengthening the local supply chain, boosting skills and increasing international engagement.
"More importantly and most importantly of all, it's about creating jobs."
The plan also sets aside $6.3 million from 2009/2010 for a market access program.
A new Automotive Industry Innovation Council will bring together decision makers to implement innovation and reform in the industry.
The plan gives the automotive industry the certainty it needs to get through today's difficult times and invest in the future, the report says.
"The automotive industry worldwide has been affected by the global economic crisis, but it also faces longer term challenges, including more intense competition and rising environmental expectations," the report says.
"Fuel prices are increasing and consumer preferences are changing.
"The government's new car plan will help the industry adjust to a more open trade environment and shift to producing vehicles and components with lower fuel consumption and greenhouse gas emissions."
The report says the package is transitional assistance and ultimately the industry should be self-sufficient.
"Accordingly assistance will be phased out over time," the report says
