Note: Where available, the PDF/Word icon below is provided to view the complete and fully formatted document
Rudd's poor business policy could cost local jobs: Hartsuyker.



Download PDFDownload PDF

Media Contact: Greg Pierce 02 66 52 62 33 0408 532 785 Email:greg.pierce@aph.gov.au Canberra: 62 77 4447

Luke Hartsuyker MP Federal Member for Cowper

MEDIA RELEASE

6 February 2009

Rudd’s poor business policy could cost local jobs - Hartsuyker

The Rudd Government’s poorly thought out 30 per cent tax rebate when businesses purchase new assets could cost local jobs, according to Federal MP Luke Hartsuyker.

Speaking about the Rudd Government’s $42 billion stimulus package in Federal Parliament yesterday, Mr Hartsuyker said the government had confirmed the 30 tax rebate would apply to the purchase of new assets, but not second-hand assets.

Mr Hartsuyker said this could have devastating effect on businesses which sell second-hand trucks.

“A business in my electorate, Mid Coast Trucks, a substantial employer in the town of Macksville, where unemployment is high and where jobs are highly valued, is being adversely affected by a poorly thought through policy,” Mr Hartsuyker told the Federal Parliament.

“The fact is that if you purchase a new truck you will be eligible for the tax rebate under the stimulus package. If you purchase a second-hand truck you will not be eligible.

“A lot of work goes into the reconditioning of a second-hand truck, and that work could be done locally in the community by local tradesmen.

“In the case of the purchase of a new truck, which is just shipped in from overseas and virtually sent straight to the purchaser of that truck, there is little local input going into it.

“Here we have a consequence where there is a tax break at a cost of $2.7 billion to the taxpayer—that is, a 30 per cent rebate available for the purchase of a new truck, which is imported and which supports workers in Japan or another overseas country.

“When it comes to a local worker in the town of Macksville whose job is dependent on reconditioned trucks, purchasers of trucks are being encouraged through this tax break to move from the purchase of a used truck with a high local labour content to perhaps a new truck, which is fully imported with very little local labour content.

“This just highlights the fact that this package has not been fully thought through. We have a $2.7 billion cost to revenue—a cost to revenue that is actually potentially detracting from local jobs and detracting from the ability of young people to get an apprenticeship in the field of truck repair and maintenance, and it is quite clearly of concern,” Mr Hartsuyker said.

Mr Hartsuyker said he had written to Treasurer Wayne Swan, calling on the Rudd Government to review the policy and expand the criteria to include second hand assets.

Ends