Ford blames Kevin Rudd's FBT tax changes for plant shutdowns

[nero_bolt]

More Rudd thought bubbles written on the back of an envelope that does nothing but hurt Australian workers..... 

FORD has blamed Kevin Rudd's $1.8 billion fringe benefits tax overhaul for halting production, forcing at least 750 workers to be stood down in rolling stoppages that will further imperil Labor's chances of retaining the nation's most marginal seat.

Work at Ford's key Australian plants in Geelong and Broadmeadows was shut down yesterday and will be again today as car buyers flee the market in the wake of the FBT overhaul.

The shutdowns are part of six planned FBT-related stoppages at the Victorian plants, which produce the soon-to-be-defunct Falcon and Territory cars.

The industry has savaged the FBT changes amid fears the production uncertainty could drive buyers further away from the embattled Ford brand.

The closures yesterday embarrassed the Prime Minister, who was campaigning in the marginal Victorian Labor seat of Corangamite, which abuts Geelong. The seat is held by 0.3 per cent and relies heavily on Ford for hundreds of direct and indirect jobs.

Ford yesterday confirmed to The Australian that the first of the six shutdowns had begun and the production closures in Victoria had been a direct result of falling demand due to the tax changes, which have been opposed by the Coalition.

Ford spokeswoman Sinead Phipps said workers would receive 60 per cent of normal pay with the option of topping up their wages with existing leave entitlements.

A crisis meeting of the Napthine government's Ford taskforce was called to deal with the fallout from the plant closures, with 500 staff sent home at Broadmeadows and a further 250 at Geelong.

Opposition industry spokeswoman Sophie Mirabella warned that the overhaul affecting salary-sacrificed and company cars would lead to thousands of job losses. "Kevin Rudd and his Clayton's Industry Minister Kim Carr need to immediately step in and put an end to this mess, by following the Coalition's decision to reverse this dreadful policy," Ms Mirabella said.

http://www.theaustralian.com.au/national-affairs/election-2013/ford-blames-kevin-rudds-fbt-tax-chang...

Why aren’t union officials defending workers from Rudd?

Australian Licenced Aircraft Engineers Association federal secretary Steve Purvinas yesterday challenged ACTU secretary Dave Oliver to speak out against the FBT changes.

Mr Purvinas, a member of the ACTU executive and a vocal critic of the ALP, said he had emailed Mr Oliver about his concerns.

“I am furious that I have not heard anything from the people who are meant to be representing auto workers when hundreds of their jobs are on the line,” Mr Purvinas said. “The ACTU should put these workers’ needs before that of their political friends.” 

[azureline**]

Lucky they have this straw to clutch at?

[izabsmiling]

Exports the key to survival as six-cylinder market shrinks

The reality is that Australia is now part of a global car market.

Gone are the days when a family simply had to choose between a locally-built Ford or Holden.

More often than not Australians are buying small cars sourced from Japan or Korea.

The Australian speciality – large six-cylinder family cars - are no longer in demand locally.

Now Australian car manufacturers have to export to survive. 

Evan Stents, the head of HWL Ebsworth's Automotive Industry Group, says Australia "will never be able to compete or have a sustainable business model just to build cars for the Australia market because of competition".

"It's all about exporting. Holden and Toyota both have export plans, but it's hard to carry them out when the dollar is where it's at," he said.

http://www.abc.net.au/news/2013-06-17/ford-closure-highlights-decline-of-car-manufacturing-industry/...

I think they need to stop the 'blame' game 

[izabsmiling]

CAR INDUSTRY ASSISTANCE IN SPOTLIGHT

The issue will re-ignite debate over industry assistance.

*The Coalition policy is to slash industry assistance by $500 million by 2015 and not specifying its commitment to the automotive industry post-2015.*

Speaking before the closures were confirmed, Treasurer Wayne Swan said manufacturing was being hurt by an economic transition heavily influenced by the high dollar, which was “providing challenging circumstances for some industries and some sectors’’. Ms Gillard also cited the high dollar.

But Mr Graziano said it was not a big factor.

“There were a number of different factors that go into the overall cost ... of manufacturing here,’’ he said.

“I wouldn’t say that that’s an overarching causal factor,’’ he said of the dollar.

Mr Graziano said the company would continue its manufacturing operations until 2016 and expected to receive already-promised government assistance of $34 million in return.

http://www.afr.com/p/national/ford_to_pull_out_of_australian_manufacturing_1y7BTSXmf5L0XWQQxfuwNJ

[poison_ivys_pen]

OP I think it a bit of a stretch that is the result of the FBT changes as Ford announced well prior to those changes their intentions of winding down operations here with the cessation of producing the Falcon and this is more likely intune with their processes towards that end rather than the FBT changes.

[izabsmiling]

and more recently 

http://www.sbs.com.au/news/article/2013/08/23/abbott-will-kill-car-industry-says-rudd

23 AUG 2013 - 8:20AM

Abbott will kill car industry, says Rudd

Kevin Rudd has defended the government's assistance to the car industry after Ford said FBT changes had forced a halt in production

Prime Minister Kevin Rudd has warned an Abbott government would spell the end of car manufacturing in Australia, as he defended fringe benefit tax changes blamed by Ford for a halt in production.

The carmaker has announced a series of rolling stoppages at its Geelong and Broadmeadows plants, attributing falling demand for new cars to Labor's $1.8 billion FBT changes.

Mr Rudd talked up his government's assistance to the car industry on Friday.

He has previously said Tony Abbott would strip $1.2 billion in government funding.

"Mr Abbott is effectively saying vote for him (and) that's the end of car manufacturing in Australia. We know that, everyone in the industry knows that," Mr Rudd told Sky News on Friday.

"If you want to see a car industry in Australia at all - and the 50,000 workers who depend on it directly, and the 200,000 workers who depend on it indirectly - then there is only one course of action, which is to get behind our approach."

Mr Rudd on Saturday announced a further $500 million in funding for the Australia's automotive sector up to 2020, with a pledge of more support into the next decade.

But Mr Abbott rubbished the promise as policy-on-the-run, and accused Labor of waving a blank cheque at the auto industry in response to the worsening polls.