Australia Sets Up $90 Million Unemployment Fund To Offset Automaker Close

December 18, 2013 Share Print 0

Australia has announced plans to set up a A$100m ($90m; £55m) fund to create jobs in states affected by Holden’s decision to stop making cars there.

Holden, a subsidiary of General Motors, said last week that it would stop production in Australia by 2017.

The move will result in 2,900 people losing their jobs in the states of Victoria and South Australia.

There have been fears that Holden’s decision may impact growth and result in job losses in related sectors.

The federal government will contribute A$60m to the fund, with the Victorian state government putting in A$12m.

Prime Minister Tony Abbott said he hoped that Holden would contribute $20m and that he would also be asking for a contribution from South Australia “in the same order as Victoria’s”.

However, South Australia has criticised the package, calling it “manifestly inadequate”.

via BBC

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Alfonso Esparza

Senior Currency Analyst at Market Pulse

Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.