SmartCompany readers have reacted angrily to the Rudd Government’s plan to spend $6.2 billion propping up the country’s ailing car industry, describing the scheme as a “shambles” and a “deploringly bad allocation of precious funds”.
SmartCompany readers have reacted angrily to the Rudd Government’s plan to spend $6.2 billion propping up the country’s ailing car industry, describing the scheme as a “shambles” and a “deploringly bad allocation of precious funds”.
The plan has been heavily criticised across the media, including here at SmartCompany, where we questioned why so much money is being spent on an under-performing industry when many sectors of the economy – particularly small and medium technology companies – are being crushed by the credit crunch.
As you can see from our feedback section, our readers clearly agreed.
“There is no Australian car industry. Let’s spend the money on innovation where there is some chance of an investment multiplier – solar energy, bio-technology, education, even tourism for goodness’ sakes!” wrote Derek Austin.
“How many more poorly planned, knee-jerk financial ‘gifts’ will it take to push our economy into a serious deficit?” asked John Ireland.
Much of the criticism focused on the way the car industry has been poorly managed for decades, despite receiving huge amounts of financial assistance.
“Regardless of the global economic downturn, Holden and Ford have been planning and manufacturing the wrong cars for a changing market for nearly a decade. They would be in a mess regardless of any market downturn,” wrote Tony Heywood.
Perhaps we should leave the final word to Keith Ralfs.
“Unfortunately, the money will be used to sustain a dinosaur that will be a continual drain on the public purse. Better to pull the pin today – let it collapse and allow real innovators and inventors create a totally new industry from scratch; we have that capability.”
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