Libs 'not interested' in keeping Holden open

South Australian Premier Jay Weatherill has dismissed calls for future car industry funding to be scrutinised by the Productivity Commission as “code” for plans to close Holden’s Elizabeth plant. Mr Weatherill marked the start of the federal election campaign with an attack on Coalition Leader Tony Abbott, claiming he has “no interest” in South Australia.

Mr Weatherill said a Coalition government would devastate the State Budget by cutting the SA’s share of GST funding and pulling $500 million from car industry support. He also questioned Mr Abbott’s commitment to submarine building in Adelaide. The Liberals’ plan to reduce car industry funding but claim a Productivity Commission inquiry and removal of the carbon tax could improve the sector’s global competitiveness.

Mr Weatherill today said voters should be “very afraid” of market rationalism and calls for the car industry to stand on its own feet, branding that “the language of closing Holdens”. Coalition Industry spokeswoman Sophie Mirabella yesterday said “the current funding model is broken. Ford has announced they’re leaving. Something has to change,” she said. “The change is to find a sustainable funding model.”

Mr Weatherill also welcomed a $200 million Federal Government package to help promote the purchase of Australian cars. However, he admitted details were unclear. Federal Industry Minister Kim Carr today visited Adelaide to sell Labor’s car policy, and said the $200 million would provide incentives for people to buy Australian cars for fleets and organisations.

Mr Abbott has flagged a national tax review if he wins the election but senior Liberals deny it will result in a cut to SA’s GST share. Independent Senator Nick Xenophon said he would oppose cuts to car industry funding and mooted changes to fringe benefits tax if re-elected. “It is an article of faith,” he said. “I will not let any government get away with cutting assistance.”