Cash for Clunkers

24/07/10

In March 2009, Industry Minister Kim Carr rejected the concept of millions of dollars for a cash for clunkers program, branding the idea as “extremely expensive”.

“On first glance, today’s announcement by Julia Gillard seems to be another hastily-devised initiative that could deliver a serious blow to workers in our car industry,” said Shadow Industry Minister Sophie Mirabella today.

“We’ll have a closer look at the idea, but this has all the early hallmarks of a scheme that will favour foreign car manufacturers and be open to considerable rorting and abuse.

“Overseas experience shows these programs favour cheap imports over locally-made cars. Popular Australian cars like the Ford Falcon and the Holden Commodore are already being excluded under this initiative.

“At least 90% of the eligible cars are foreign-made, like Mercedes Benz and BMW – and that represents a huge threat to local car jobs.

“Giving away almost $400 of taxpayers’ money for one reduced tonne of carbon also represents a significant blowout from the kind of costs that were envisioned in the Government’s shelved ETS of less than $30 per tonne.

“This will threaten local jobs and send millions of dollars to overseas multinational car companies.

“It also has all the makings of another disastrous home insulation and school hall ripoff style program.”