Media Release

KAP Federal Leader and Member for Kennedy Bob Katter says he is deeply concerned about the impact of axing tax concessions for new cars that stimulate Australia’s motor vehicle manufacturing industry, to fill a carbon tax hole.

“Given the domestic market share of Australian-made motor vehicle sales has in the past quarter-century diminished from 73 per cent to 12 per cent[1], and our motor vehicle industry workforce has shrunk one-third in the past decade[2], we are deeply concerned about preliminary reports of a significant impact on new car sales,” said Mr Katter of the Federal Government's fringe benefits tax changes for salary-sacrificed cars.

Mr Katter said that instead of “robbing Peter to pay Paul”, the government could support Australia’s vital manufacturing industries and jobs with a KAP initiative for motor vehicles purchased by local, state and federal governments be made in Australia.

“The Americans say if it contains $1 of taxpayers’ money, then it will contain 100 per cent American steel… why can’t we do that in Australia?”

Mr Katter said a strong and sustainable manufacturing industry was vital to Australia’s economic and technological advancement.

But he warned Australia was becoming a “technologically backward” nation thanks to the free market policies of successive governments forcing Australia to compete on an uneven global playing field.

“‘Free market’ simply means big foreign corporations are free to mark prices up to whatever they feel like in a country run by foreign monopolies who import all their goods on the cheap, whilst our own industries collapse,” said Mr Katter.

“As we have continuously warned, unless the dollar comes down significantly, soon we no longer have steel, car manufacturing or food processing industries, and we’ll live in a country that can’t produce a tyre, an electric motor, a motor car.

“Add all of this up and we don’t live in a technologically advanced country any more – it’s technologically backward.”

1 Of a total of 435,000 units sold domestically in 1987, about 317,000 units were Australian-made. Last year, of a total 972,000 unit sales, 140,000 units were Australian-made

2 From 78,700 in May 2003 to 50,100 by February 2013