The announcement yesterday by General Motors Holden that they will cut around 500 jobs is another reason for us to question the value of the massive handouts from successive governments to auto companies. Holden has apparently receives two billion dollars over the last ten years.
As I tweeted yesterday…
What’s the ratio of small business redundnancies to govt support VS auto mfr redundancies to govt supt? #holden #auspol Journalists pls ask.
Seriously, small businesses, like newsagencies, receive little in government subsidies. I suspect that redundancies across our channel are lower than for the auto industry this year. So, the amount of government support ‘spent’ per redundancy in our channel is far lower than in the auto industry.
We small business newsagents have to stand on our own in the face of extraordinary change in our channel and in an economy brimming with complex challenges. These much bigger businesses with many more shareholders continually put their hands out for cash. It has to stop.
Politicians of all sides agree to subsidies and other financial support out of fear. I think it’s a massive con with the Australian taxpayer the victim.
Yes these big business employee people on which we rely in our businesses. But small businesses employ people too. We tend to hang onto people longer.
Politicians need to take a more whole of the economy view of their engagement with and support of small businesses. Not just newsagents but all small businesses. More support for us could drive much needed economic growth.
While there is no doubt that big manufacturing is important to the economy, the Holden announcement is a reminder that investing too much in one sector or one business can be risky. A similar investment across many businesses could be more economically beneficial. Unfortunately, Australia has not had politicians with the leadership nor vision to pursue this for decades.
The Holden announcement sucks. It ought to be a wake up call to all politicians. Stop giving away money to big businesses, especially foreign owned big businesses. Focus on small business and get smarter at leveraging the efficiency, entrepreneurship and community value of small business.
The Australian Manufacturing Workers Union says only 33 per cent of Australian governments’ fleets are from Australian car makers, compared with 66 per cent a decade ago. (FROM SMH 2012)
Here is part of the problem, we hand over the money in tax then the Govt’s do not support their own policy of Aust made products or is it a case of the manufactures not meeting the markets need.
Also, these auto manufacturers are owned off shore so when a profit is made it leaves the country anyway.
It’s not just auto mfrs either. So much money is paid to big businesses with only vague transparency about genuine benefit for the country.
Our first business was opposite Kodak in Coburg and a prominent politician of the time (yes the Prime Minister) ensured that they were given grants to stay open. They eventually closed leaving little to nothing of benefit behind them except shoring up votes for the incumbent during his term.
The AMWU also noted that “While the Federal, Victorian and South Australian Government’s have maintained 72% of Australian made cars in their fleets, other Governments have taken their hands off the wheel”.
Its also worth noting that Australia only manufactures a few cars – so choice is very limited.
The AMWU has also noted that “One of the things that has changed is with vehicle leasing and novated leasing, companies used to have fleets and they would buy Holdens or Fords, now employees choose and there can be any car in the carpark.”
Consumers want choice and if local manufacturing can’t deliver that in a financially viable manner it needs to diversify, change or shut up shop.
As an ex pollie (SA Treasurer) said on radio yesterday “you can’t blame the govt. when the company manufactures a dog and no one wants to buy it” I nearly
fell off the chair laughing at his audacity when he was the treasurer who gave Mitsubishi (now defunct in SA) and GMH
(almost defunct in SA).
Wouldn’t we as voters expect our pollies to at least do their homework and see what the “dog of a car” looked like B4 committing our dollars to them.
Roll on Sept. 14th.
Just read my previous post and I missed
out the words “millions of dollars” after
GMH.