Corporate welfare stabilises as Commonwealth responds to budgetary pressures

I was pleased to see in the Productivity Commission’s latest Trade and Assistance Review, released today, that industry assistance from the Commonwealth slightly fell in 2010-11, and no doubt this is a reflection of policy decisions taken in response to budgetary tightness, but full credit nonetheless. These policy decisions include less generous car industry assistance than over 2005-2010 (although more generous than if the previous Government’s car plan had been maintained). There is still more work to be done as assistance from the budget remains ridiculously high at around $9 billion, according to this chart from the Review:

Previous posts of mine on industry assistance include:

Recommended reading on the car industry

Time to cut our losses on industry assistance

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