Fed: $200m aid package to Holden a concern: VECCI

AAP General News (Australia)
12-19-2000
Fed: $200m aid package to Holden a concern: VECCI

CANBERRA, Dec 19 AAP - A reported government assistance package of close to $200 million
to bring a Holden car plant to Melbourne was a concern, a Victorian employers' group said
today.

The secret incentives from the Victorian and federal governments to lure Holden to
Victoria were worth more than $160 million, or $295,000 for every job created at the new
plant, The Australian newspaper reported today.

The Victorian Employers Chamber of Commerce and Industry (VECCI) said today that ultimately,
the public should not expect governments to be the main providers of investment.

"If the report that the federal government, as well as the Victorian government, has
contributed a significant amount, then we need to ensure that, over the longer term at
least, private sector investment by Holden does deliver on the jobs and export front,"

VECCI spokesman Steven Wojtkiw (Wojtkiw) told ABC radio.

"It is a significant amount of money. Of course we'd need to offset that against the
taxpayers' money that would otherwise be devoted to providing for welfare payments."

He said state and federal governments would always be tempted to lure international
companies and significant domestic companies to their respective headquarters.

"But the real imperative to government policy-makers is to ensure that the environment
for doing business is one which is positive and conducive to new investment."

AAP dep/mg

KEYWORD: HOLDEN VECCI

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