Car Makers Call for Industry Overhaul

22 Jul 08

The body representing Australian car manufacturers and importers has called for an overhaul of a government support scheme for the industry.

The Federal Chamber of Automotive Industries (FCAI) wants more support for the Automotive Competitiveness and Investment Scheme.
The scheme encourages new investment and innovation in the automotive industry.
The chamber has also called for the tax on luxury cars, increased in last week's federal budget, to be scrapped.
FCAI chief Andrew McKellar said the chamber would do all it could to ensure the tax increase did not proceed.
“We will be putting forward the case that that tax is quite distortionary and really should be abolished,” he told ABC Radio.
Abolishing the tax is part of the chamber’s submission to an industry review being conducted by former Victorian premier Steve Bracks.
The review was established after Mitsubishi opted to close its Australian manufacturing operations.
McKellar said he was hopeful about the outcome of the review.
“It is Australia's largest manufacturing industry ... and it is a very successful export industry,” he said.
“Those are all reasons why we need to ensure that the car industry remains a vital part of our manufacturing future.”

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