Holden, South Australian Government to renegotiate the funding deal
|   Monday, April 22, 2013
The funding deal issue regarding Holden, South Australian Government has to take help of the negotiating table. Because earlier the car maker based on local area has declared about the plan of getting rid of around 500 job holders.

Jay Weatherill, the South Australian Premier met the chairman as well as managing director of Holden, Mike Devereux. The Premier discussed with the two parties for 3 hours in the meeting held in Adelaide. As per the Premier view, both the parties have separate views about the funding agreement planning.


Weatherill made it clear that the government will not provide financial help to Holden in such a condition. Both the parties do not have any proper planning about future of Holden. The financial help will cover the production, employment and content targets based on the local area. If the Government does not find any economic benefits for the state, then it won't indulge in financial help towards Holden.

And Weatherill also clearly mentioned that the Government will not pay for any funds to Holden until and unless, the Government devices acceptable terms that meets the requirement with Holden.

South Australian Government reserved $50 million for Holden. This fund was the part of $1 billion co-investment idea between the state and the manufacturer based from Elizabeth along with federal governments. And this investment was done in order to increase the production of local vehicle of the company until 2022.

Weatherill although acknowledged about the difficulties confronted by Holden but he mainly wanted to upheld the objectivities of original deal, which was initially planned.

ABC online informed that, they will agree with change in the reality which has occurred and they will surely come back with negotiating table. With a proper table, they will fix their contribution along with that adjustments will be made as per their contribution.

Jay was not satisfied with sustaining the company in favor of another phase, 2016 till 2022. And for this reason the company thought to incorporate the new agreement. This is indeed important for the working party in order to decide the transitional matters.

The government is sure that in South Australia, Holden has good future if the company acts smartly. But they certainly know that whether the government will support car industry that will not depend on slogan.
The South Australian Community knows that they won't be able to face the loss of 16,000 workers based in northern suburbs, the skills and the capabilities of the workers will be lost and above all social dislocation. All these losses cannot be borne just like that.

Devereux came out with the view, from the important meeting, that he was prepared to take the best way for Holden. In order to produce better car models and this includes the next generation cruze and the commodore car models.

Despite of being unsure about the finalization about funding the deal, Weatherill has confirmed about instant concern about the 400 workers working in Holden who are situated in South Australia, and they will be jobless by the August. And the Premier is worried about those who will lose the job and he immediately wants to some employment opportunities for them.
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