By: Paul ChidleyRead moreThe Government’s latest push to prop up the country’s fragile auto industry has been met with skepticism, with critics questioning how much money would be needed to fix the industry and the viability of the scheme as a whole.
The Government will give an additional $1 billion to the industry, and has committed to building the infrastructure, as well as purchasing an additional 200,000 cars and a new 1.5 million trucks.
The $1bn is part of the $16.8 billion package of investments that the Government has made to date in the auto industry, which is expected to create about 20,000 new jobs, and help support the manufacturing sector by more than 10,000.
However, with the Government already taking steps to help the industry recover from the crisis, there are concerns the money will not go far enough.
Some analysts have questioned whether the money is enough to create the necessary infrastructure to keep the industry operating in the long term, or if it will be sufficient to allow the industry to recover and provide jobs to its workers.
“I think the government has the capacity to go beyond the $10 billion.
It’s just not going to be enough,” said Matt Whelan, chief economist at Deloitte.
“It’s just too big to be a quick fix.”
“I do think they’re trying to do it on the backs of the car industry, so it’s hard to know what they’re doing.”
However, Dr Whela said there was a chance the money could go a long way towards helping to boost the auto sector.
“There’s a lot of money in this scheme that could be put into the industry,” he said.
In addition to the $3 billion, the Government will also invest another $1,000 to $2,000 on a program to buy cars and trucks, and $1 million on a new fleet management system.
While the new funding will help to address some of the shortfalls in the industry with the introduction of the new fleet manager, the new scheme is also designed to help support other industries, including the hospitality industry.
With the scheme expected to help bring in around 15,000 jobs, the investment will be a significant boost for the economy.
“It’s important to understand that the government is not doing this to get out of a recession.
This is a good thing, and we’ve got a lot more to look forward to in the future,” Dr Whelmans said.
The scheme is being developed through a new National Economic and Financial Management Authority, which will be established under the Coalition.
But the Government’s move to expand the scheme has raised concerns the program could end up being a drain on the economy as the scheme was originally designed to support the auto, but it is now being used to prop it up.
This has been highlighted by the fact the Government is spending $6 billion on infrastructure to support it, with another $5 billion set aside for the scheme.
“The scheme was designed to get the economy back to the pre-crisis level of employment, and now the Government wants to go further,” Mr Turnbull said in a statement.
“We’ve got the capacity for this scheme to support a very, very strong and prosperous economy, but at the same time we need to find the right funding to support businesses and jobs.”
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