Tuesday, April 27, 2004

Mitsubishi to Leave Australia? We not in South Australia don't mind either way.

I don't mind what they do, as long as they don't get any more taxpayer subsidies. I can't fathom how it makes sense not to manufacture cars in China, where the growth in car ownership is going to be explosive as people start to upgrade from two-wheeled peddle power. In Australia we already have more than 1 car per head of population in existence. In China with a Population more than 60 times greater than ours it is only around 1 car per 10 people, but growing fast. While I accept the ratios are relevant in the short term, in the long run it is the population number that matters. No governement funded taxpayer subsidy is going to be able to keep 4 car manufacturers in Australia against that population differential.

Without trying to sound like I'm crying crocodile tears, I do accept that the market process does hurt real people. I do accept there is a role for government to support them in the transitional period. What I don't accept is that it is government's role to support industries on a never-ending basis.

I'd be voting for whichever party offers the car manufacturers the least of our taxpayer money to stay. Unfortunately this is one issue where there will be no differentiation. People vote on blatant self interest, not on what is in the public interest.

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