The Abbottalypse rolls back car cuts

And the giveaways continue, from the AFR:

The federal government has dropped plans to have the Senate abolish $500 million in funding assistance to the car industry between now and 2017.

With the Senate determined to block the cuts and with the government’s fortunes reeling in the automotive states of South Australia and Victoria, Industry Minister Ian Macfarlane has announced the about face in Adelaide on Tuesday.

Prime Minister Tony Abbott is scheduled to visit South Australia and Victoria ths week. He will be in Adelaide on Wednesday.

After the recent disastrous capex numbers, I’m sure Treasury is telling the pollies to find growth wherever they can.

What a terrible shame we didn’t have a leadership crisis one year earlier.

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About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.