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Federal Government Props Up Mitsubishi

The Federal Government announced today that it is to provide $35 million of assistance to Mitsubishi Motors in 2004-5.

The move will promote job growth in Adelaide and encourage the car-maker to retain its Australian operations.

The decision will be seen by many to be at odds with the philosophy of a government that preaches the free enterprise mantra of competition and efficiency.

Text of statement from Prime Minister John Howard announcing the decision to provide $35 million of support to Mitsubishi.

I am pleased to announce that Mitsubishi Motors Corporation has accepted a $35 million offer of assistance from the Commonwealth Government. This assistance will facilitate a major new investment in Mitsubishi’s Adelaide plant and the establishment of a global research and development centre in South Australia. [Read more…]