SP Newsletter No.247
In late 2008 the Rudd Labor government announced that will be handing over a $6.2 billion bail out package to the car industry. This in effect is corporate welfare on a massive scale.

The reason for the bail out is allegedly to ‘save’ the car industry from collapse during this time of economic crisis, but no guarantees have been made to workers to ensure that jobs, wages and conditions are protected. This is not a package to save the car industry but a package to save the profits of the big car companies.

The Australian car industry has experienced its worst sales performance in 30 years. Car sales in 2008 fell by 14.5 per cent, mirroring similar trends worldwide. The Australian bail out package also comes on the back of a similar handout to US car companies who are set to receive $US13.4 billion after a decision by the US Congress.

Apart from the fact that the car companies are not obliged to protect jobs with this money, the biggest problem with the package is that all of the major decisions about how this important industry is run are being left up to a few ‘leaders’ of big business. There is nothing to stop the car giants pocketing the handouts while continuing to downsize operations. Compare this to the strict regime that people on unemployment benefits are forced to adhere to!

The car industry bosses are the same people who have presided over the wholesale demolition of the manufacturing industry in Australia for years. They are also the same people who have created the situation which has made the car industry so vulnerable.

For example, with petrol prices so high people are wanting to move away from big six cylinder cars and towards smaller more efficient models. There is also a big demand for electric and hybrid cars. But we have seen next to no investment in new green car technology or the production of these cars on a mass scale. The big car companies continue to try and force us to buy bigger cars so that they can make more money.

Many of the car industry bosses are located in the US. They actually have no interest in protecting the Australian industry. As Henry Ford once said “we don’t make cars we make money”. In effect this package is really an incentive for the big car companies to not pack up and move their plants overseas where they can pay workers less. This will remain a temporary situation as it will only be a matter of time before the car companies come back cap-in-hand. Unless we break from the idea of corporate hand outs big business will continue to hold the government over a barrel by threatening to move off shore.

The Socialist Party does not want to see the Australian car industry collapse. At the same time, simply lining the pockets of the people who drove the industry into this crisis doesn’t make sense. The car industry bosses shouldn’t be entrusted with any public money.

The only way to protect jobs, wages and conditions is to bring the car industry into public ownership under democratic control and management. Decision-making should not be left in the hands of big business or government bureaucrats. It should be run by a board- consisting of union members, elected representatives of local communities where the plants are located, and elected government representatives- in the interests of ordinary people and the environment.

A plan should be drawn up to retool the plants to provide for the transport, energy and infrastructure needs in the coming decade. The production of more environmentally friendly cars should take priority. Plants could also be retooled to produce new buses, trams and trains.

However, to turn around the economy it would not be enough to just bring the car industry under public ownership. The entire financial system is clearly not geared towards serving the interests of ordinary people. By also bringing the big banks under public ownership, funds could be directed to build new environmentally friendly products to provide for the long-term needs of society. This is the only way to secure a decent future for working people both in Australia and worldwide.

Upcoming SP meetings

The Melbourne Branch of SP meets every Wednesday at 7pm in Trades Hall on the corner of Lygon & Victoria Streets Carlton South. Upcoming meetings include:

4/2/09 – 50th anniversary of the Cuban revolution
11/2/09 – A Marxist approach to the national question
18/2/09 – What change will Obama bring to the US?
25/2/09 – The Marxist theory of the state

For more information or for details of meetings in other parts of Australia contact our National Office on 03 9639 9111.

Socialism 2009

Capitalism in crisis: A day school on understanding the world economy
Saturday March 21st, 11am till 5pm at Trades Hall in Melbourne.

Three sessions including: An introduction to Marxist economics, How the global downturn will effect Australia and Fighting back against capitalism. Costs are $5 unwaged, $10 waged or $20 solidarity price. To book your place or for more information phone 03 9639 9111.

News links

US: Two inaugurations for two Americas
http://socialistworld.net/eng/2009/01/2702.html

Ireland: Nationalisation of Anglo Irish bank
http://socialistworld.net/eng/2009/01/2601.html

Kazakhstan: Appeal for solidarity from Almaty
http://socialistworld.net/eng/2009/01/2802.html

Join the Socialist Party

If you agree with what you have read in our newsletter or on our website you should consider joining SP. The Socialist Party has branches in Melbourne, Sydney, Newcastle and Perth as well as members and supporters in all other states.

We are involved in trade union work and student work. We also run community, anti-war and environmental campaigns. But most of all we want to build a party that will fight to get rid of the capitalist system, the system that is at the root of all of these problems. We fight for socialism - a system that will bring an end to wars, poverty and environmental destruction. To join SP contact our National Office on 03 9639 9111 and we will send you a membership application form.

Subscribe to ‘The Socialist’ newspaper!

Support the Socialist Party by subscribing to our monthly newspaper ‘The Socialist’. Subscription rates are only $10 per year or $20 solidarity price. You will receive 11 copies per year delivered to your door every month. You will also receive our email newsletter every week and you will know that you are supporting an organisation that is at the fore of fighting against the capitalist system. To subscribe to ‘The Socialist’ contact our National Office on 03 9639 9111 and we will send you a subscription form.

Socialist Party contact details

Melbourne: Phone Anthony on 0396399111.
Sydney: Phone Gary on 0297287727.
Newcastle: Phone Samantha on 0249681545.
Perth: Phone John on 0894020728.
Rest of Australia: Phone our National Office on 0396399111.
Rest of the world: Phone our International Office on ++ 44 20 8988 8760.

The Socialist Party is the Australian section of the Committee for a Workers’ International (CWI). The CWI is organised in over 40 countries across the world.

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