Apr 22

Australian Government has allocated $ 100 million to promote employment

Holden, a subsidiary like General Motors, said last week that it would stop production in Australia along 2017.

The move will result in 2,900 people losing their jobs in the states of Victoria and South Australia.

There enjoy been fears that Holden’s decision may significance growth and result in job losses in related sectors.

The federal government will contribute A$60m to the fund, with the Victorian state supremacy putting in A$12m.

Prime Minister Tony Abbott said he hoped that Holden would share $20m and that he would also be asking for a contribution from South Australia “in the same order as Victoria’s”.

However, South Australia has criticised the package, calling it “manifestly inadequate”.

Carmakers in Australia have struggled in recent times, despite the government extending support to the industry over the past few years 2013 Hot Selling Terrific mobile phone lens for motorola v3.

High manufacturing costs, a relatively small domestic market et alii a strengthening currency have all nocent the sector.

A strong Australian dollar, which has risen nearly 30% against the US dollar over the hindsight five years, has bot one of the biggest issues.

It has made foreign cars more affordable for Australian consumers, hurting domestic carmakers. According to some estimates, imported cars now account for nearly 85% from sales in Australia.

Earlier this year, US carmaker Ford announced that it would stop production in Australia from 2016. Holden’s decision last week would leave Toyota as the only resolution making cars in the country from 2017.

There are concerns that the Japanese firm may decide to leave as well Shop Cell Phone Batteries, Smartphone Batteries.

Such worries have prompted calls for the government to take fresh steps to help the sector, neither least because either such move from Toyota is likely to have an impression on related industries such as car parts manufacturing.

However, Mr Abbott said that while the government was looking to help, it was refusal keen on providing direct subsidies.

“We don’t want to see corporate welfare, what we want to see is a country which has got the economic fundamentals right,” he said.

“Government’s job is to foster the muscles and the sinews and bones of our economy, if you like, so that the concealed sector can add the bulk.

“This jurisdiction will be very loath to consider requests for subsidies,” he added.