Car industry report aims to support continued subsidies

THE Federal Chamber of Automotive Industries says it thinks a report showing dire economic consequences if the car industry collapses in Australia will change many people's views.

The report was compiled for the chamber by the Allen Consulting Group and Monash University researchers.

It concluded the economy was $21.5 billion better off because of government subsidies to the car industry and nearly 40,000 jobs would be lost if car makers pulled out of Australia this decade.

Chamber chief executive Tony Weber said even it was surprised by the findings.

"When you compare the level of assistance provided by the Government, which is less than $500 million a year, the benefit for the economy is extremely large so this is very conservative modelling," he said.

Read more at ABC News online


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