" Buying " jobs !

General Motors Holden has it's hand out and demands another $ 200 million from Australian taxpayers to remain a local car manufacturer - and that is despite a $ 275 million handout last year - which was supposed to guarantee production until 2022.

This is probably a result of changes to the " Fringe benefits tax " and it's application to company supplied cars.  As a result, car leasing companies have shed staff and the industry expects a glut of car stocks to be shed at heavily discounted prices, further dampening demand for the local product.

This is further exacerbated by the move away from the type of cars we manufacture in this country.   In past decades, the big " Australian six cylinder " was the favoured choice of most families.   Now the " SUV " is the vehicle in most driveways - and buyers are offered an amazing choice of smaller fuel efficient cars from South Korea, India and China.

GMH is a mere shadow of it's former self.  Back in 2004 it employed 7,000 people.   Today, that figure stands at 1,700.    It recently sacked 400 factory workers and 100 engineers from it's plant in South Australia.

Some would think that spending $ 200 million to virtually " buy " just 1,700 jobs is a gross waste of money, but the actual car manufacturers are just the tip of the iceberg when it comes to job numbers.

The three existing car manufacturers - GMH, Ford and Toyota - support a huge number of companies that provide the componentry that goes into Australian cars.
Ford has already decided to quit manufacturing in Australia and the dip in production runs means at least staff layoffs - and probably the end of some of the smaller supply firms.   The question mark hanging over GMH makes the continued existence of the car component industry uncertain.   Any expansion is out of the question until things settle.

The big question is whether component volumes from GMH and Toyota will  remain viable when Ford leaves, or whether we are seeing the end of car manufacturing in Australia - and what other form of manufacturing can we turn to  if we are to save the thousands of jobs in the existing car componentry industry ?

That $ 200 million might be money well spent if it buys us time to look for answers.    We have a vast array of  companies with the skill, machinery and knowhow to manufacture a huge array of items.

This is supposed to be the " clever country ".   Now we need our best and brightest to apply themselves in developing new opportunities to change direction and keep those component factories humming along.

That's where the real job numbers are - and those are the people we can not afford to let join the dole cheque !