23 Jan 2012

Another life-line for car industry

7:09 am on 23 January 2012

The Australian car industry looks set to be thrown another life-line by the federal government.

Radio New Zealand's Sydney correspondent reports that General Motors and Ford threaten every few years to close their Australian manufacturing plants. And every time, the government comes to the party.

The latest is another $A100 million subsidy to keep the foreign car companies operating. By 2020, they will have received $A10 billion from the taxpayer.

Critics say if the industry can't survive without handouts, it should be taken off life-support.

Defenders say the investment is worth it to preserve 46,000 direct jobs and many more outside the industry. As usual, no-one asks consumers what they think.