Monday, December 9, 2013

Baby you can drive my car!

The Australian Auto Industry employs 45,000 people with supposedly almost 250,000 other jobs indirectly connected to the manufacturing side of the industry.

All that aside, it would appear that we don't subsidise our car industry as much as every other country Fact Check.

But my concern is this...

Over the last 10 years, Governments have spent $4.1B in subsidies to the local auto industry.
Divide by 10 (#years) - $410M per year.
Divide by 45,000 (#direct employees) - $9333.3 per employee

Remember that number.

When these people are unemployed, cos once you remove an industry, it's often hard to keep working in it, what do they do?

Sure, some can be retrained (costs the Government money), but there aren't 45,000 jobs out there.

Add to this to the inevitable reduction of jobs in the indirect market - remember that quarter of a million people mentioned earlier?

"C'mon man, they're not ALL going to be unemployed!"

Whatchoo talkin' about Willis?

Well maybe not, but a lot of them will be, and I don't know about you but I have concerns when we're seriously considering paying someone unemployment benefits for not working, rather than paying a subsidy for them to actually work.

The Dole is about $310 a week, $16,000+ a year - for doing nothing.
The Subsidy is about $179 week, $9333.33 a year - for doing something.

Sure, people have to want to buy the cars, they have to be of a design and standard we desire and it is hard when other companies can sell you an imported car for less, but is the real solution to give up and say "well fuck me!"?

None of this is one group's problem, it is an involved issue, but don't let people fool you into thinking it is just about the Government hand out.

The solution should be;
- Design some better cars! This includes, fuel efficient, green and affordable!
- Work smarter! Sure, there may need to be some people who lose their jobs, but some is not 45,000 and certainly not a flow-on to the extra 250,000!

Stop designing this kind of crap!
Petrol isn't cheap, in fact as the dollar drops it is only going to get more expensive. $1.50 is soon to be the minimum.

If we weren't all under the impression that we needed a big car or a half dozen of them, perhaps the industry would find itself a suitable niche and prosper.

My concerns for this Government, and all Liberal Governments, is that it is once again, money first, people second.

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