We shouldn't subsidise businesses that cannot compete.

[topsidesoul]

That phrase has been used to describe why Holden should have gone belly up.

Shame that we have given and continue to subsidise mining to the tune of 4.5 Billion dollars.

The other arguement is unions and the high salaries thse workers make.

Again a finger that can be pointed at mining which is a very good friend of both parties as well as the Nationals.

Go looking through both parties to find ex mining as well as see epople like Barnaby Joyce good friends with the likes of the Rhineharts.

We shouldn't dump mining as well as we should not have let auto manufacturing go.

[cherry*135]

JAPANESE giant Toyota has overtaken Holden as Australia’s biggest exporter of cars, eclipsing the 1 million milestone in less than half the time it took Holden to export 900,000 vehicles.

Toyota Australia this month exported its one-millionth vehicle to the Middle East, with a peak of 97,000 cars shipped in 2008.

Toyota has been shipping the Melbourne-made Camry to the region since 1996 but has been exporting cars from Australia since 1986.

In comparison - it took Holden 59 years to export 907,000 cars.

Export numbers will likely become a key focus for the car industry as Holden prepares to negotiate for further assistance with the new Federal Government.

Prime Minister Tony Abbott and Federal Industry Minister Ian Macfarlane have said Holden must export in “significant” numbers if it wants to continue to receive a high level of taxpayer support.

[acacia_pycnantha]

Why should the taxpayer be expected to help any private company? Why should we socialise the expenses and yet privatise the profits?

I well understand the influence on political parties of very large comapnies who employ lots of voters people. I think it is a disgrace that companies would use the future security of its' workers as a bargaining tool in order to gain subsidies.

private enterprise is known for a few mantras. One of which is "the law of supply and demand; when the demand is high, prices go up, but when demand is low, prices fall"

This is an outright lie, as evidenced by the continued high prices in a market of falling demand. Their solution? Ask the govt to kick in public money .

Why should prices rise in a climate of higher demand? because of that mantra "Charge what the market will bear (no matter the actual cost of production)

Another mantra is "competition of the fittest. be competitive or fail. Competion is healthy as it builds strong business".

They don't even believe that myth themselves no matter how much they spout it.

Uncompetiitive companies come blackmailing begging to the govt for more pulic-money funded bailouts.

They threaten to close and move overseas, quoting high wages as one of their reasons, when the wages of their CEO's and other executives is at an exhorbitantly high level.

many companies could survivie very well if they accepted a reduced level of profits.

. . . .

"Holden recorded a profit of $89.7 million in 2011 – the exact same amount it said it received in taxpayer funding during the same period.". . .

"In 2010, Holden posted a profit of $112 million after receiving $100 million in taxpayer assistance." . .

“We need this [taxpayer assistance] to help level the playing field with our global competitors which have also received direct and indirect government financial support.”(Holden spokesman said.

“Without the government funding Holden would not have invested in production capability. We’ve invested  $1.3 billion in [research and development] over the last five years [including $231 million in 2011 and $179 million in 2010].

http://news.drive.com.au/drive/motor-news/taxpayers-fund-holden-profit-20120507-1y89d.html

. . . .

So, Holden and other businesses use the fact that they pay company taxes and their workers pay income tax back to the govt, but what we seem to have in Holden's case is a publicly funded business run for private profits.

And of course, they invest in "production capability" in order to earn more for themselves.

[acacia_pycnantha]

And don't get me started on mining companies.

Mining the wealth of the land which belongs to all Australians (or should do in a fairer world), using public money to help them do it, and then pocket huge profits for themselves from our minerals which our money helped them dig up . . for their own private gain.

And they chuck us a few crumbs back in some jobs for a few and in some crummy company taxes and mineral royalties.

Ms Rhinehart didn't become so rich by being working for the public welfare, did she?