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Wednesday May 23, 2012

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Can we afFord this bail-out?

Posted by: Derryn Hinch | 10 January, 2012 - 3:28 PM
Ford employees face a nervous wait

Before I get stuck into a couple of Governments – one Labor, one Liberal – let's take a stroll back in history to a time when an American company called Kodak got into some financial bother in Australia and the Hawke Government generously showered millions of dollars on them to keep an Australian production plant going.

Good for Australian jobs, they said. Good for Australia.

Kodak eventually pulled the pin anyway and the taxpayers received no compensation. Kodak has since been knocked off the New York Stock Exchange and this week went into liquidation. But that's not the point.

Why are our governments so keen on showering foreign companies with money? We don't get a share of their profits and there is no pay back scheme if they go bad.

At least when Jeff Kennett decided to save an Aussie company, a knitting mill from memory, he used his own money.

My comments today are triggered by the triumphal tone of a joint press release put out by the Gillard and Baillieu governments.

Between them they are going to tip in more than $100 million of your money to boost the fuel efficiency and emissions in the Ford Falcon and the Ford Territory. Why? Surely it is up to a commercial business to improve the fuel efficiency of their product. You can be sure they'll boast about it over their competitors in all those endless TV commercials.

Prime Minister Gillard says it is great news for the future of the Automotive industry in Australia. It'll keep the Falcon being produced at Broadmeadows for another four years.

The Feds are tossing in $34 million so I guess Victorian taxpayers are kicking in nearly $70.

They were all there at the launch. Senator Kim Carr, Acting Premier Peter Ryan, Manufacturing Minister, Richard Dalla-Riva.

Mr Ryan says the deal will produce a new and better Falcon. Isn't that Ford's job? What's our Acting Premier doing sounding like a car salesman?

Back in Detroit, they must be laughing. What irks me is that you don't see Governments – state or federal – kicking in money when small businesses start to struggle or are at risk of going out of business.

Nobody hands them a wad of taxpayer dollars to create a fresher, cleaner, more efficient product.

Ford will stay here as long as it suits them. Likewise Holden. If they get sick of trailing Toyota as they have in in the sales figures released today they'll pull the pin.

If the Mazda again outsells the Commodore, as it did in 2011, General Motors may consider its options. One of which, you can bet, is to go cap in hand to the state and federal governments. Handout time.

No wonder the Ford bosses were smiling at the big media conference announcing the handouts today. They're playing us on a break.

PLAY: Hinch's editorial and follow-up interview

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3AW Drive with Hinch

Hinch Hinch is a former police rounds reporter, former foreign correspondent, former newspaper editor, former host of national current affairs shows, former novelist, former radio host in Melbourne, Sydney and Adelaide, former MIDDAY host and former jailbird.

Blog comments Your Say

  • In fairness, the only people who won't see this event in a positive light, will be those whose jobs won't be affected by it.

    So many small Australian companies supply the likes of Ford and General Motors, making this problem a lot bigger than a simple matter of a few million bucks.

    Every person who loses a job will affect the total economy.

    The ripple affect will be huge.

    I agree it's a false economy, that it can only go on for so long before it will eventually bight our butts, but that's the way the majority of the world are living and of course it's exactly what led to the Global Financial Crisis.

    In other words, we will be living above our means.

    BUT, what of the ripple affect if we don't keep these companies going? It will hit all of us, especially the business world, and in turn, cause the loss of more jobs and more ripples.

    I wish people would learn to live within their means, to make sure they can afford all they do before ever risking debt for the chance of a few easy dollars, but gambling is part of life, and whilst it is, we will always face these dilemmas.

    Bob Sunday 15 January, 2012 - 2:31 PM

  • I agree 100 percent with you Derryn. The government never did put any money into an Australian company called SPORTSCRAFT in 1994 when the company stacked over 400 workers. Our government is stupid!

    Colin Wednesday 11 January, 2012 - 10:41 AM

  • There is one way that FORD can save some money .. ! Stop sponsoring the Geelong Football Club. As I see it, if we the public are going to save FORD with our taxes, doesnâ??t that mean that we are all supporting Geelong Football Club.? Sorry, but the truth is the truth.. !

    Bree Wednesday 11 January, 2012 - 9:47 AM

  • Its, about keeping people employed more so than about Ford Derryn>!!

    Steve Wednesday 11 January, 2012 - 9:42 AM

  • Brilliant editorial on the Ford money handout Derryn! I couldn't have put it better myself.

    Shona Wednesday 11 January, 2012 - 7:39 AM

  • love the podcast mate, keep em comming

    mick i Tuesday 10 January, 2012 - 11:28 PM

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