Race is on for car recovery cash

THE car states will be forced to compete for the $155 million in funds to restructure the dying auto manufacturing industry.

Kerryn Lester-Smith moved to Geelong for employment opportunities and a better lifestyle. Picture: David Geraghty

THE car states will be forced to compete for the $155 million in funds to restructure the dying auto manufacturing industry under Tony Abbott’s plans to back initiative and commercial acumen ahead of parochialism.

The Prime Minister said yesterday a competitive battle between Victoria and South Australia for the package of measures designed to assist with the looming death of the Aus­tralian industry would encourage best practice.

Mr Abbott said while no state would miss out, the federal government wanted to back the best ideas to ensure the worst ­affected communities were given the best chance of surviving.

The so-called growth fund has been carved into five separate funding areas, including skills and training, the auto industry structural adjustment program and “next generation’’ manufacturing to accelerate investment in other industries.

The federal government will inject $100m into the fund but South Australia is yet to formally commit to its $12m contribution.

Victoria and South Australia are the states hardest hit by the shutdown of the big three car companies, imperilling an estimated 45,000 jobs. Mr Abbott said he wanted the cash to be spent wisely, with expert advice adhered to on whether projects were backed by the government.

“It is a bit of a competitive process but in the end we will try to ensure that everyone gets a reasonable share of this $155m,’’ he said in the Victorian car city of Geelong.

Occupational therapist Kerryn Lester-Smith, 33, moved to Geelong five years ago and is the kind of young skilled worker the city hopes to attract and retain.

Now a project manager with the Committee for Geelong’s LEAD Barwon project, helping national disability insurance scheme trial participants, Ms Lester-Smith believes there is a bright future in the city, both for those moving from auto-industry jobs and skilled workers looking for a good place to live.

“There’s no way we’d have been able to afford a house in Melbourne,” she said.

South Australian Treasurer Tom Koutsantonis welcomed the increased funds but said he wanted to know how much money would be allocated to his state.

Geelong and Elizabeth, in northern Adelaide, are the areas most affected by the car plant closures.