Assistance negotiations between SA govt and Holden stalled due to fed election

The South Australian government has said that re-negotiations for assistance for Holden’s Elizabeth plant have stalled due to the upcoming federal election.

The state’s government has pledged $50 million to the plant, with the federal government providing other funds, though a re-negotiation of assistance was demanded by the SA government after Holden announced in April that it would be making 400 jobs redundant at Elizabeth. As reported by Manufacturers’ Monthly and others, the company will also be reducing output from 400 cars a day to 335.

"Those negotiations have continued and I've been to visit Holden a couple of times in Victoria to go through that, but they have largely been put on hold waiting for the negotiations with the federal government and federal opposition," the ABC reports Premier Tom Kenyon as telling a Parliamentary Estimates Committee.

Meanwhile, new federal industry minister Kim Carr, who is returning to the portfolio he held under Kevin Rudd’s government from 2007-2011, has said that he will meet with Holden, Toyota and Ford soon to discuss car making in Australia.

"I'm strongly of the view we can have a viable auto industry if we have the right policy settings," Carr said, according to News Limited.

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