VACC urges government to back local manufacturers

In the wake of news that the Commodore design could go overseas, the VACC is urging government to support local manufacturers.

VACC has called for Australia’s manufacturing sector to receiving more Government attention and financial support. VACC’s 5,000 member businesses are employed in the retail, service, and repair (RS&R) sector of the automotive industry and VACC has called for more state and federal government financial intervention to ensure the long term viability of local manufacturers.

 “In horse racing terms, local manufacturers are stayers, capable of running the distance. However, they are handicapped with a high Australian dollar, cheap imports and globalisation,” VACC Executive Director, David Purchase, said.

 “We absolutely need manufacturing in this country and it should be further fostered with targeted financial assistance generated from the mining and resources boom.

 “Other countries do this in all sorts of ways and get away with it on the world stage, and so should we. I regard this assistance not as ‘handouts’ but rather an investment in our future.

 “Governments should be doing what they can to make local manufacturers efficient and competitive. I am not suggesting we throw bags of money at every manufacturer, but governments need to go further and financially assist local manufacturers even when they might not be as competitive as their overseas counterparts,” Purchase said.

“Australians have not lost their appetite for new vehicles and, interestingly, sales of locally manufactured models grew, with 13,450 deliveries representing a 20.1 per cent increase over October 2010'

 “The government cannot ignore the fact that there is a demand for locally manufactured vehicles. To ensure the local supply continues to keep pace with demand, more financial investment, and over a long period, is required,”  Purchase said.