From the AFR this morning comes the statement from BHP chairman Jac Nasser, the former chief executive of Ford Motor Company, that:
…it was possible that if Australia had invested larger subsidies into the industry, it might have been able to survive.
“I’d say we haven’t spent a lot on it when you compare the incentives that the automotive industry has received to others. I don’t know whether that is the appropriate conclusion. Maybe.”
He also said that lose one lose ’em all:
“It would be a very sad day for Australia but unfortunately it looks like it could be inevitable…It’s difficult to predict [when it will die] because it also depends on the supply base and as soon as you have a reduction in the scale of domestic manufacturing – let’s assume one of the three decides to exit Australia in terms of manufacturing – then you end up potentially with a sub-scale supplier infrastructure. Once that happens, I think it’s a domino effect.”
I am no fan of subsidies but have one question for all of you out there. Are you so certain of the future that you feel secure in a nation that has no capital or labour capacity to produce its own cars and petrol?
