The Australia Government Should Not Provide Funds To The Automotive Manufacturers

1011 words - 5 pages

The Australian Automotive industry has a significant volume to make car from scratch and manufacture. The ford company was the first Australian carmaker in 1948.The Australian automotive manufacturing industry has become one of the majors’ scenarios in Australia. When the government came up with the welfare assistances, they had to review or assess the assistance required. For instant, economic, social and environmental assistances. The government and business owners worked hand in hand. At this moment. There are some issues affecting the welfare of Australians. The government already has policies to assist companies that are experiencing financial crisis. With regard this, having explained ...view middle of the document...

Assistance will carry out costs on the community and dulls incentives to improve productivity, export opportunities, and expansion of other industries. Current government funding should be reassessed to determine whether subsidies will help the current situation. The assistance given to the industry would not contribute to the economic growth, The Car industries have been supported by the government since they have started their operation in Australia. As an example, in the past, transitional assistances have been offered, however, the car manufacturers couldn’t make any outcome from the assistances given (Vidot, & Barbour 2014) the business should stand on its own feet. In that spirit, the Commonwealth Government has refused to offer assistance to businesses including Holden and SPC Ardmona, despite the fact that, tens of thousands of jobs are expected to be lost across Australia as the car makers and other manufacturers would pack up and leave. Having discussed economic issues, the next paragraph will address social issues.
The social aspect of life, as a matter of fact, the government should not subsidise business in order to minimised competition in the field of technology. Productions of many cars are dangerous for human health. Therefore, the employers and employees should get involved with the responsibility to regulate industry in fairly manner without government intervention in deregulating business industry (Ball & Dagger.2009) argued for political, economic and individual freedom emphasised the need to reduce government intervention, the free market and the new right. Up to this point, environmental issues will be discussed in the next paragraph.
The globalisation has impact on social, economy and environment. However, the financial crisis needs more effort from the government to act urgently in a responsible way to handle the climate seriously, rather than subsiding one particular company (Johnson, 2013) the apparent threat of global warming has prompted the governments to put in place a diversity of regulations that aimed at fighting against the global crisis. The United Nations’ summit on climate change is a clear example, which emphasised that the environmental policies are taking on the political agenda within the sectors that make up the economy. For example, road transport is a significant...

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