FED: Taxpayers contribute almost half of new Holden plant cost

AAP General News (Australia)
12-19-2000
FED: Taxpayers contribute almost half of new Holden plant cost

MELBOURNE, Dec 19 AAP - Taxpayers will pay nearly half the cost of Holden's new $400
million engine plant in Victoria, a national newspaper reported today.

The secret incentives from the Victorian and federal governments to lure Holden to
Victoria were worth more than $160 million, or $295,000 for every job created at the new
plant, according to The Australian.

Both Victorian Premier Steve Bracks and federal Industry Minister Nick Minchin have
kept mum on the extent of public funding.

But South Australian premier John Olsen, who lost a bidding war for the V6 engine plant
with Victoria, said Mr Bracks put up $60 million.

The Australian said it was told by its sources that the Victorian and federal governments'
combined contribution was 42 per cent of the total cost of the new plant.

That meant the Howard Government had pumped at least $100 million into the new plant,
according to the paper.

The combined investment was only slightly less than the $166 million profit that Holden
reported in 1998, it said.

AAP nl/was

KEYWORD: HOLDEN (CARRIED EARLIER)

2000 AAP Information Services Pty Limited (AAP) or its Licensors.