Oz Government Adds to Post-Auto-Production Aid Fund
The federal government is boosting its contribution to A$100 million, while another A$55 million comes from the Victorian and South Australian state governments and GM Holden and Toyota, two of the automakers ending local production.
The Australian government boosts its contribution to a fund to help workers and supply-chain businesses in Victoria and South Australia affected by the impending closure of local automotive manufacturing operations.
Prime Minister Tony Abbott says the A$155 million ($143.8 million) Growth Fund is designed to generate the jobs of the future.
“We are committed to doing what we can to ensure that these employees move from one good job to a better job when they leave those companies,” Abbott says in a statement.
The size of the fund has been increased from the A$100 million ($92.8 million) announced in December with the federal government boosting its contribution from A$60 million ($55.7 million) to A$100 million.
The other A$55 million ($51 million) will be contributed by the Victorian and South Australian state governments, GM Holden and Toyota, two of the manufacturers who are ending Australian production.
The Growth Fund includes:
A$30 million ($27.8 million) for a skills and training program to help auto workers have their skills recognized and provide training for new jobs, while they are still employed.
A$15 million ($13.9 million) added to the auto-industry structural adjustment program to provide career advice and help employees find new jobs.
A$20 million ($18.5 million) for a diversification program to help automotive suppliers enter new markets.
A$60 million ($55.6 million) to accelerate private-sector investment in high-value non-automotive manufacturing sectors in Victoria and South Australia.
A$30 million ($27.8 million) for a regional infrastructure program to support investment in non-manufacturing opportunities in affected regions.
Abbott says the government is moving quickly to deliver assistance for affected employees and businesses and putting in place a long-term national plan for change and growth.
“The government has been working with the industry, including components makers, local communities, workers and the Victorian and South Australian state governments to…guide Australia into a new and strong era of manufacturing,” he says.
The Growth Fund is a response to decisions by Ford, GM Holden and Toyota to quit local vehicle manufacturing in the face of the Abbott government’s refusal to provide additional assistance.
Ford is ending production by 2016, followed in 2017 by GM Holden and Toyota.
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