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

A Victorian employers' group is concerned by the government assistance package of close
to $200 million offered to lure a Holden car plant to Melbourne.

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

The Victorian Employers Chamber of Commerce and Industry (VECCI) says the public should
not expect governments to be the main providers of investment.

VECCI spokesman STEVEN WOJTKIW told ABC radio that if reports of the assistance package
are true, then they must ensure that private sector investment by Holden delivers on the
jobs and export front.

He says it's a significant amount of money and it needs to be offset against the taxpayers'
money that would otherwise be devoted to providing for welfare payments.

But Mr WOJTKIW says the real imperative to government policy-makers is to ensure the
environment for doing business is one that's positive and conducive to new investment.

AAP RTV dep/hn

KEYWORD: HOLDEN VECCI (CANBERRA)

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