Holden impact could be overstated: report

Deloitte-Access
Economics’ quarterly Business Outlook has suggested that South Australia’s
economy would face challenges from Holden’s decision to quit manufacturing, but these should be considered as part of the bigger picture.

According to the ABC, the report found that the movements of the Australian dollar would
have more of an impact on the state than the loss of automotive jobs.

Business
investment remained strong and the state recently posted its best export
figures.

According to News Corp, Chris Richardson from Deloitte Access noted, “More
or less over the same period things were looking tougher for Holden, the
Australian dollar went down.’’

“I
would count that as a bigger positive for job prospects in South Australia than
I would count Holden as a negative.

“The dollar was a big
part of the problem, not just for Holden, but for other things from wine to
even defence contracts.’’

Holden will end its manufacturing operations in Australia in 2017.

The quarterly report said that growth would be weak, but not negative.

“The economy is already weak and the hit to it
may be relatively concentrated in time, rather than spaced out over a number of
years,” it reads.

A less optimistic piece of research released
this month, commissioned by Adelaide University’s Australian Workplace
Innovation and Social Research Centre, predicted that the end of automotive manufacturing would be particularly painful for South Australia and Victoria.

Though it was criticised by some as
alarmist, the research – first made public on a Lateline report on the end of
Australian automotive manufacturing – tipped a loss of nearly 24,000 jobs in SA
as a result, and a potential loss of $44 billion in overall national GDP.