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Secret report contradicts the car industry's cause

Both reports were prepared in April this year, but the car industry was forced to shelve its report

Australia's three car manufacturers -- Toyota, Holden and Ford -- have been left red-faced and out of pocket after a top secret study commissioned by them was contradicted in another report published by the same consultancy firm.

The car industry heavyweights appointed Allen Consulting Group to assess the economic impact of vehicle manufacturing and the firm found $23 billion would be “wiped” from the economy between 2018 and 2031 if the industry closed down.

The report said the cost of losing car manufacturing in Australia was “far in excess of the amount of industry assistance that would likely be provided over that time period”.

But at the same time as that study was due to be published by ACIL Allen -- the company formed when ACIL Tasman merged with the Allen Consulting Group -- produced a report recommending taxpayer support be cut from struggling industries.

Subsidies to particular industries are a tax on the remainder of the economy,” said the ACIL Allen report prepared for the Property Council Of Australia.

They have become more significant in the last decade, totally nearly $9 billion annually. The more successful industries, those that do not need subsidies, prop up the less successful ones,” the report said.

Both reports were prepared in April this year. But the Property Council’s study was released first and the car industry was forced to shelve its report -- despite spending an estimated $100,000 on the study -- because of the contradictory findings.

News Corp understands the car industry has since commissioned a revised version of its report and the findings are due to be released by the end of the year. Representatives from Toyota, Holden and Ford have confirmed they were working with the Federal Chamber of Automotive Industries on the study into the viability of local manufacturing. But none would comment on why the results of the study have been postponed. Representatives from ACIL Allen did not return calls from News Corp last night.


This reporter is on Twitter: @JoshuaDowling