Government inquiry seeks quick answers
It has given the Productivity Commission just seven weeks to report on the industry, demanding an interim report by December 20. It wants a final report by March 31.
The deadlines are tighter than those announced by Industry Minister Ian Macfarlane earlier this month, who spoke of an interim report by Christmas and a final report by June.
It would allow the reports to feed into the budget process and the deliberations of Holden's owner General Motors, which has indicated if it is to stay in Australia it needs to make plans by Christmas.
The company is unlikely to announce closure of its Adelaide and Port Melbourne plants until after the South Australian elections in March. It had promised to keep manufacturing in Australia until 2022 under a $275 million "co-investment" promised by the Gillard and South Australian Labor governments.
The Coalition has not matched Labor's commitment and has promised only to hold a Productivity Commission inquiry before deciding what to do.
The inquiry's terms of reference, released on Wednesday, require the commission to take account of "the type and level of support provided to overseas manufacturers" with a view to offering the same support.
Frequently Asked Questions about this Article…
The government is speeding up its inquiry to try and convince Holden to continue its operations in Australia. They aim to provide quick answers that could influence Holden's decision-making process.
The Productivity Commission has been given a tight deadline, with an interim report due by December 20 and a final report by March 31. This is to ensure the findings can be considered in the upcoming budget process.
The inquiry's findings will be crucial for Holden's owner, General Motors, as they need to make plans by Christmas. The report could influence whether Holden decides to continue manufacturing in Australia.
Holden is unlikely to announce any closures of its Adelaide and Port Melbourne plants until after the South Australian elections in March. The decision will depend on the outcomes of the inquiry and subsequent government actions.
The Gillard and South Australian Labor governments had promised a $275 million 'co-investment' to keep Holden manufacturing in Australia until 2022.
No, the Coalition has not matched Labor's commitment. Instead, they have promised to conduct a Productivity Commission inquiry before deciding on any further actions.
The inquiry will consider the type and level of support provided to overseas manufacturers, with the aim of potentially offering similar support to the Australian car manufacturing industry.
The inquiry's findings could impact investment decisions by providing insights into the future of car manufacturing in Australia, potential government support, and the viability of companies like Holden continuing operations in the country.
Call 1300 880 160
Start a chat
Schedule a call
