Rudd blows $70 million of taxpayers' money for nothing

Car giant Toyota had already decided to make a hybrid version of its Camry sedan in Australia and did not need the $70 million of taxpayer-funded subsidies promised by the federal and Victorian governments yesterday. Kevin Rudd, speaking at a meeting with Toyota executives at their Nagoya plant in Japan, yesterday pledged $35 million to the company from Labor's new Green Car Innovation Fund as an incentive to assemble the vehicles at the Altona facility in Victoria. Victorian Premier John Brumby matched the $35 million figure.

But the funding promise has been undermined by local Toyota chiefs, who told The Australian the decision to make petrol-electric hybrid Camrys in Australia had already been made and was due to be announced "within months". Toyota Australia spokesman Mike Breen said the subsidies meant the announcement was brought forward. It would have gone ahead without the $70 million cash injection, which was not critical to the proposal, he said. "It would have happened regardless and we wouldn't bring it to market unless we're going to make money," Mr Breen said. "It's always nice to have support but it comes back to a business decision."

Toyota has been explicit about its wish to produce a hybrid version of the Camry in Australia since the model went on sale in Japan two years ago. At yesterday's announcement, Toyota president Katsuaki Watanabe refused to say if his company would have opted to build the hybrid in Melbourne without the taxpayer assistance, under which the Government will offer $1 for research and development for every $3 spent by the company. But Mr Watanabe confirmed Toyota "only recently" heard it would receive a $35 million subsidy from the Australian Government's $500 million green car fund "so we are not sure how we will use it".

The hybrid Camry will go down the same assembly line as the petrol version already built at Altona, with all the engine components imported complete from Japan ready to drop into the car.

Source

Posted by John Ray. For a daily critique of Leftist activities, see DISSECTING LEFTISM. For a daily survey of Australian politics, see AUSTRALIAN POLITICS Also, don't forget your roundup of Obama news and commentary at OBAMA WATCH

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