Australian gov't to deliver fund to help workers affected by Holden's closure

The Australian government will deliver fund to help create jobs in the states affected by the closure decision of GM Holden, Australian iconic automobile maker, Prime Minister Tony Abbott and Industry Minister Ian Macfarlane announced in a joint press conference in Canberra on Wednesday.

Holden announced last week it would cease manufacturing in Australia by 2017 due to a "perfect storm" of poor economic conditions. And this decision will put 2,900 people out of work -- 1,600 from the manufacturing plant in South Australia and 1,300 in Victoria.

And it will further affect the entire automotive industry in Australia, according to local media, with concerns it may force Toyota and the broader car parts sector to follow suit, which would lead to almost 40,000 out of work.

"I can announce that the Commonwealth is putting together a 100 million AU dollars (almost 89.26 million U.S. dollars) fund to invest in potential employment-generating projects in South Australia and in Victoria," Abbott said.

According to him, the package will include 60 million AU dollars from the federal government, with an additional 12 million AU dollars from Victoria.

And he said the government is "talking to South Australia for a commitment in the same order as Victoria's and we'd hope to get 20 million AU dollars perhaps from Holden."

Industry Minister Ian Macfarlane will work with the South Australian and Victorian governments and business leaders in those states to come up with the details of where the money would go.

In addition, Abbott also confirmed that he would chair a taskforce comprising the Treasurer, Industry Minister and Minister for Trade and Investment to develop a National Industry Investment and Competiveness Agenda which will make recommendations to the government by the end of June 2014.

According to the arrangements, the projects would not only be funded in areas directly affected by the Holden decision but also in other areas where manufacturing is struggling.

However, Tony Abbott also emphasized that his government "will loathe to do for businesses in trouble the sorts of things that they ought to be doing for themselves". "No country has ever subsidized its way to prosperity," he said.