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SYDNEY - The federal government will today unveil its multibillion-dollar assistance package for the automotive industry.
The 10-year plan, to be launched by Prime Minister Kevin Rudd and Industry Minister Kim Carr, is expected to go further than the A$U2.5 ($2.87) billion already flagged, News Limited reports.
The package follows a review of the industry conducted by former Victorian premier Steve Bracks.
Released earlier this year, the review recommended a reduction in car tariffs from 10 per cent to 5 per cent by 2010, despite opposition from manufacturers and unions.
It also recommended the production of more environmentally-friendly vehicles, calling for the government's $500-million green car innovation fund to be brought forward to next year and, if successful, doubled to $1 billion.
The industry minister would not be drawn on the cost to taxpayers of the new package, but said car manufacturers would not be offered a blank cheque.
"All program assistance is predicated on post-production milestones being met," Senator Carr said.
While the government has sought firm commitments from Holden, Toyota and Ford that cars will continue to be made in Australia, there are fears guarantees may not be iron-clad, Fairfax newspapers report.
There are also concerns about the security of the plan given uncertainty about the future of carmakers around the world, Fairfax reports.
- AAP
