Holden loss would devastate South Australia

[Oracle of Delphi]

The loss of car manufacturer Holden would be devastating for South Australia, the state government says.

Manufacturing Minister Tom Koutsantonis said if the car maker shut up shop it could result in the loss of 8000 jobs across the automotive sector.

He said that would have both an economic and social impact. "When you couple those together it would be devastating for the state," he told reporters on Friday. "Could you imagine South Australia tomorrow with 8000 (extra) families without an income."

The minister's comments appeared designed to up the ante on the state and federal oppositions, who have been less forthcoming in their support for Holden and the auto industry. The state opposition says it fully supports the car industry but wants to know the details of a financial support package being negotiated with Holden before endorsing the deal that will ensure the car maker's future until at least 2020.And federal Opposition Leader Tony Abbott this week reaffirmed the coalition's previous policy of scaling back assistance for the auto industry from 2015, essentially axing $500 million in support.

Mr Koutsantonis said South Australia's economy was built on a foundation of manufacturing and agriculture and its future lay with both manufacturing and mining. But he said history showed that once manufacturing capacity moved offshore it never returned. "If you've got mining and manufacturing then you've got high-paying, high-skilled jobs," he said. The minister has also warned against talking down the Holden brand during the current debate and insisted parent company General Motors (GM) had been completely honest in detailing its financial position and the challenges it faced.

The state government says a deal on a co-investment package between the state and federal governments and the car maker could be finalised within weeks.

No details have been released but it could be worth as much as $200 million. Premier Jay Weatherill said the deal would come with conditions, including a demand for GM to ensure Holden's Australian operations and the state's car component sector were better integrated into its global operations, giving them the ability to tender for contracts around the world.

Link: http://goo.gl/33Uul

[loki]

gov inbed with corporations....and vise verse..