Why Government's grant to Holden hurts national economy.

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The Federal Government have just announced they will be giving Holden a $275 M two hundred and seventy five million dollar government grant and Holden will invest a BIllion dollars into its manufacturing in Australia.

This isn’t the first government grant to be handed out to selected manufacturers in Australia and an interesting question to ask is not why they stay, but why they are here in the first place.

It is energy, or to be more specific, cheap electricity that Australian government’s used to offer to businesses .  


Governments once built infrastructure like electricity and the taxpayers and government borrowings covered the initial big costs and Australia was able to offer cheap energy to companies. 


It is what helped to make our manufacturing competitive.

Now with the costs of labor and energy and other costs rising the government is selectively picking a few trophies here and there to keep.  


But what about the thousands of smaller businesses who can’t lean on governments and unions and don’t get any government grants.

Individually each one might only employ a small handful of people, but collectively they mean more to Australian employment, manufacturing and the economy than one car company.

Do we see wayne Swan and Julia Gillard protecting their jobs?
Turn It Up
I’m Michael Robinson 

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