It doesn’t take a genius to work out why Holden cannot survive in Australia without massive taxpayer subsidies. For years the workforce has been featherbedded, with the excesses outlined by Grace Collier in yesterday’s Australian. For years, the company cannot produce cars that people want to buy at the prices they charge.
Nick Cater describes the preferences of South Australia for ‘assisted development’
In other states, the promoter hires a venue, charges the baby boomers a small fortune and ensures the Stones turn up at the appointed time. In South Australia, the government builds the venue, the baby boomers still pay through the nose, but the premier has to bung the Stones a wad of cash to convince them to turn up at all.
Now the Premier of the ‘pen pushing state’, Jay Weatherill, thinks the future of Holden is entirely in Tony Abbott’s hands.
Not at all. If Weatherill thinks taxpayers should continue to throw good money after bad at Holden, he doesn’t need the Federal Government. The South Australia Government can equally hand out subsidies, and increase taxes on SA taxpayers.
It is Weatherill who thinks that the subsidies pay back many times over – let him test the waters by throwing money at all sorts of manufacturing industries. South Australia can become the experiment state – and SA taxpayers can reap the rewards of a manufacturing subsidy bonanza.
Tony Abbott should be clear though – there will be no bailing out of the South Australian Government if it decides to embark on a debt and tax-led recovery.
There must be millions of projects crying out for taxpayer funding, all with claims of returns many times over the subsidies provided.
We, in the other states, can watch as SA sinks and can then move in and buy the bankrupt State at a firesale.