PM ends his tight-fisted policy to tend to industries in battered areas

PRIME Minister Tony Abbott once promised an end to industry handouts. But in the last few days he has offered billions for struggling cities. Today it was Geelong’s turn.

GEELONG, AUSTRALIA - AUGUST 06: Australian Prime Minister Tony Abbott arrives at a press conference at the Novotel Hotel on August 6, 2015 in Geelong, Australia. Abbott announced today it will base its $14 million Advanced Manufacturing Growth Centre in Geelong. (Photo by Paul Jeffers/Getty Images)

PRIME Minister Tony Abbott today continued his newly-discovered talent for spending as he tended to the economically battered Geelong area.

Remember when the new Prime Minister warned he wasn’t in the business of handouts to industries?

He has changed his mind, and today announced a relatively modest $14 million for an Advanced Manufacturing Growth Centre to “link local businesses with global companies” and “identify jobs and skills needs”.

It was nowhere near the $89 billion Mr Abbott pledged over three days in Adelaide — $20 billion for brought-forward construction of Navy frigates, $19 billion for patrol boats, and a previously promised $50 billion for maintenance of 12 submarines when they are bought offshore.

The urgency of the funding was made clear today when the severity of South Australia’s unemployment problem was realised. Seasonally adjusted figures for July showed the South Australian unemployment rate was 7.9 per cent while the national rate was 6.3 per cent.

The readiness to spend in SA encouraged ship builders in Melbourne and Western Australia to request similar assurances. In Melbourne, it is particularly urgent, with BAE Systems at the Williamstown dock about to shut.

Separately, there were appeals from Labor for Government contracts to be renewed with the Workwear Group which makes Army combat uniforms or it will shed its 45 jobs.

Mr Abbott today told Melbourne’s 3AW he couldn’t give the Williamstown operation any stronger guarantee than it had a “fighting chance” to pick up work: “The fact is I can’t give more of a guarantee than BAE.”

While modest against the Adelaide pledges, the $14 million for Geelong was also a long way from the solid refusal to assist Victoria’s SPC cannery when it revealed its financial troubles in January last year.

Adelaide and Geelong have suffered from the end of car making in Australia after the Abbott government declined further subsidies, and the Prime Minister has been attempting to assist the regions’ plans for self help.

He has also been attempting to repair the political damage to the Government caused by the economic decline of the regions. South Australia has been identified as a particular problem.

And in both South Australia and Victoria the federal government is dealing with strong Labor premiers.