Government's industry policy lacks a compass

If the government is serious about developing the north then perhaps the $100 million being spent on the Holden shut down should have gone to the north.

The government’s reaction to the Gove shutdown calls into question their commitment to a policy of northern development. But if even mining companies are pulling out of the north and unwilling to invest money then we need to question if this is really a wise use of tax payers money.

The difference in the reaction to Gove and Holden is only the tip of the ice berg. The government’s industrial policy has been shambolic and without any consistency or focus. They have leapt from handing out money to prop up some companies, such as their grant to Cadbury to talking tough about corporate welfare and knocking back SPC Ardmona’s request for a strikingly similar grant.

How does the government’s policy for the development of the north sit beside its desire to cut cash and tax concessions to businesses?

Any northern development policy is going to require substantial tax payer funds over an extended period of time. Not just support for business and industry to grow but also substantial investment in infrastructure across a huge remote region.

The government needs to get back to basics and formulate some kind of coherent industrial policy. Until they do that they will continue to lurch from one inconsistent decision to another and any plan to develop the north with remain in the never never.