The death of Australia’s car making industry will result in the loss of as many as 40,000 jobs, according to a review by the Productivity Commission.
AAP reports that, according to the review, those job losses will be staggered over a number of years and include workers from the three remaining car makers, Toyota, Holden and Ford, as well as those employed in the auto component sector.
In addition, the review said that the structural adjustment within the industry was unavoidable and the years of government assistance given to car makers only delayed the change. It warned that continued assistance beyond 2017 was not a good idea.
In terms of those left unemployed by closure of the car makers, the Productivity Commission said no extra assistance beyond what other unemployed people receive should be given.
"Regional adjustment funds, infrastructure and defence spending and industry support programs are costly and ineffective ways to facilitate workforce adjustment," it says.
AAP reports that the Australian Industry Group disputed the report’s claim that only 40,000 workers will be affected. It said that, by this calculation, 60 per cent of the sector will survive and added that this was a fanciful prediction.
"This isn't just another minor adjustment to the economy," Ai Group chief executive Innes Willox says in a statement.
"It represents the virtual closure of an entire industry. This will happen within a relatively short span of time and it will affect a large number of businesses, employees and communities."
He added - "These markets are already crowded and are extremely competitive, with many auto components suppliers already operating in them."