Crunch talks planned for Holden and Coalition
Crunch time is looming for Holden with the new Coalition Government planning a make or break meeting with the car giant in Adelaide in a fortnight.
Fears are growing it’s plan to cut half a billion in assistance from the car manufacturing industry will spell the end for workers at Holden’s Elizabeth plant.
After being sworn in yesterday, industry minister Ian Macpharlane said one of his first tasks was to text message Holden boss Mike Devereux to arrange tour of the factory in Adelaide’s northern suburbs.
He knows he is facing a tough challenge.
"I accept that - it wouldn't have been the first call I made when this was announced if I didn't think this was the most important issue to my portfolio," Mr Macpharlane said.
The former Howard Government minister negotiated through the Mitsubishi crisis.
He said Holden's survival is reliant on one thing.
“They’ve got to build a car that Australians want to buy, and Mike is aware of this, I know he has got something up his sleeve, I’m hoping he will show me in the privacy of his office,” the minister said.
But government assistance is still up in the air.
"If money's required - well as I say, my pockets are a bit empty at the moment - I want to see where it's gone first.
"I'm not able to say what will happen until I actually get down there and have a look."
He said he is keen to keep politics out of discussions and has invited the two major parties and Independent Senator Nick Xenophon to the Adelaide meeting, flagged for October 3.
“There will obviously be tough negotiations, I think cool heads need to prevail, I am really impressed that Mr Macpharlane is taking the approach that this needs to be bipartisan,” Mr Xenophon said.
Holden said it is looking forward to the meeting.
Jay Weatherill has predicted Holden will shut in 2016 if the Federal Government does not dig deep and come up with a funding package for the car maker.
“We know that Holdens will not commit unless they have a business case that stacks up and from what we can see, the Coalition policy that they took into the election really does put Holdens at risk,” Mr Weatherill said.
He has written to Prime Minister Tony Abbott asking him to commit to the $275 million co-investment package negotiated with the former Gillard government to ensure Holden continues local manufacturing until 2022.
