Protectionism is back:
Toyota will receive $35 million from the Federal Government in return for building a new hybrid car in Victoria from 2010.
The headline: “Toyota hybrid gets $35m aid”. I wasn’t aware Toyota was in such dire straits as to require aid… Come on people, dig deep and give generously – there are starving corporations out there.
The $35 million comes from the $500 million green car innovation fund that Mr Rudd promised before the election.
That’s a relief – for a moment, I was worried it came from my taxes.
I guess Rudd considers this good politics. He manages to suck up to unions, greenies and the Japanese in one go.
UPDATE: With Victorian state government kicking some cash in too, they’re actually getting $70m.
UPDATE 2: A lot more from Andrew Bolt.
UPDATE 3: Seems Rudd is again ignoring a Productivity Commission report:
That report said the economy would be almost $600million a year better off if Labor proceeded with the former government’s plan to halve tariffs and get rid of car industry assistance, and that Rudd’s proudly touted $500million “green car fund” was essentially an expensive waste of time.
And it’s all the tip of the iceberg, I’m afraid:
Industry Minister Kim Carr (could we be about to have a Carr car plan?) leaves next week for talks with Ford chief executive Allan Mulally and GM chairman Rick Wagner about their possible Australian investments, with incentives from the green car fund.