AAP
June 09, 2013
SUBSIDIES should be withdrawn from Australia’s ailing car industry as business goes through “rigor mortis”, an Australian-born US business leader says.
Andrew Liveris, chief executive of the Dow Chemical Company and influential US Business Council head, says unprofitable businesses need to shut down and restructure rather than rely on government handouts.
“Prop up is a terrible word. I’m against prop, I’m against subsidy,” he told ABC television on Sunday.
The Darwin-born executive said Australian industry was also inferior to the US when it came to change.
“My observation is Australia is actually in rigor mortis,” he said.
“It’s lost its ability to actually innovate and actually develop the things that the United States has.”
Mr Liveris, who went to high school in Brisbane, said Australia was too relaxed about its future.
“Australia, my wonderful home country, the lucky country, the well-written about happiest country in the world of course has complacency as its greatest enemy,” he said, adding he wanted to live in Australia again.
Business Council of Australia president Tony Shepherd agreed subsidies weren’t helping the Australian car industry.
“Well, I don’t like long-term subsidy without a plan to get the business competitive,” he said, arguing manufacturers needed export plans.
The comments come a fortnight after Ford, which only makes right-hand drive vehicles, announced it would cease Australian manufacturing by 2016, after 88 years in the Victorian city of Geelong.
This will result in the loss of 1200 jobs, and follows the demise of Australian car making by Nissan in 1992 and Mitsubishi in 2008.
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