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The Australia government should not provide funds to the automotive manufacturers.

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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 an overview of this topic, the question is whether the government should provide money to the car manufacturers or not. This essay will mainly focus on economic, social and environmental issues facing Australian community as a whole. The local market competition, the economy became weak, As a result of money fluctuation in the market. In regardless of Spill over benefit to the manufacturers industries, the expenses may exceed cost of the subsidies .therefore; it will be difficult for the company to pay back the public funds. As a consequence, some areas will experience difficulty in employment and economic activities. In fact, the adjustment programme to assist the disadvantage community will be maintained and the government debt for misusing money will be decreased (The Productivity Commission, 2014) recommended that the policy rationales for specific assistance to automotive manufacturing are weak. However, the community would benefit from the ending of assistance to automotive manufacturing through the Automotive Transformation Scheme (ATS... ... middle of paper ... ... Pearson, Sydney, NSW. Hawthorne, M & Massola, J 2014, ‘Ongoing financial support for car industry 'not warranted': Productivity Commission report’, the Sydney morning herald; Canberra. From web; http://www.smh.com.au/federal-politics/political-news/ongoing-financial-support-for-car-industry-not-warranted-productivity-commission-report-20140131-31rq2.html#ixzz2wPlWFgL8. Johnson, JL 2013, 'Following the Money: Developments in the Global High Wealth Industry Group', Journal Of Tax Practice & Procedure, 15, 4, pp. 49-52, Business Source Complete, EBSCOhost, viewed 19 March 2014. Productivity Commission 2014, Australia’s Automotive Manufacturing Industry, Position Paper, Canberra. Vidot, A & Barbour, L 2014, ‘Dry argument: Australia's drought policy dilemma’, National Rural News, Canberra. From web: www.abc.net.au/news/2014-02-21/drought-assistance-in-australia/5269062
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