SA Premier holds talks over proposed FBT changes

South Australian Premier Jay Weatherill has held top-level industry talks following the Prime Minister’s controversial proposal to change the fringe benefits tax on company cars.

He admits the timing couldn’t be worse, with Holden’s future at Elizabeth under a massive storm cloud.

Meeting with automotive representatives and the Federal Industry Minister today, Mr Weatherill put Holden at the top of the agenda.

“The timing couldn’t be worse, but we think there is a way of remedying the situation,” Mr Weatherill said.

Holden was already in talks over its future before Kevin Rudd suddenly announced the plan this week.

“Those arrangements were made without reference to the South Australian Government and without discussion with industry, and there are real concerns about the impact,” Mr Weatherill said.

Today, the first casualties surfaced with car lease company NLC axing 74 staff.

“We’ve unfortunately had to make a very fast decision to make about half our staff redundant,” NLC director Danny Wilson said.

Scores of others around the country face the same fate.

Holden chiefs are working through the implications of Mr Rudd’s announcement, but the company’s initial assessment is that the changes will have a significant impact.

“Anything that’s going to put people off from buying a motor vehicle in this country is bad for the industry,” Jim Griffin from the Federation of Automotive Vehicle Industry Manufacturers said.

Opposition leader Steven Marshall doubts the Premier’s talks today will achieve much.

“He should be talking to either the treasurer of the Prime Minister, they’re the ones who are responsible,” Mr Marshall said.