Government Scraps Green Car Fund

A bit of bad news down-the-pipeline today! Unions and automotive industry groups say they are disappointed the Federal Government is abolishing the Green Car Innovation Fund.

The Government dumped the fund, which provides incentives to manufacturers making more environmentally friendly cars, to help fund its flood recovery package.

But Dave Oliver, from the Australian Manufacturing Workers Union, says the program has proven its worth and the decision puts jobs in the automotive sector at risk.

“The manufacturing sector is under significant pressure, particularly the way the dollar is at the moment being so high as it is, we’ve got the threats of further free trade agreements,” he said.

“Now is not the time to be cutting programs designed to attract investment to the sector.”

Andrew McKellar, from the Federal Chamber of Automotive Industries, says it is a bitterly disappointing decision.

“The sector at the moment is of course under intense competitive pressure with the high value of the Australian dollar,” he said.

“I think that really does put those jobs at risk and all those families reliant on the industry, it’s unnecessary to be undermining their welfare.”  Very disappointing news but the real incentive for manufacturers moving forward should be profits as green car technology and consumer interest picks up!