Holden closure highlights need for continuing transformation of Victoria's economy

“THE announcement by Holden that it will cease its Australian manufacturing operations in 2017 is a significant blow for Victoria and in particular the workers and other businesses directly affected," says VECCI Chief Executive Mark Stone.

“While the decision does not come as a surprise, given the intense pressure on the vehicle manufacturing industry from factors such as international competition and changing consumer preferences, its impact will be felt inside and out of Holden. It is imperative that policy makers recognise the importance of supporting the transition of affected workers and businesses into new industries and markets.

“However, Victoria’s economy has already been embarking upon a transformation from traditional to advanced manufacturing and with the growth of other parts of our economy, such as the services sector, the impact of the Holden decision will be at least absorbed in part. Also positive is Holden’s confirmation that a national sales company, a national parts distribution centre and a global design studio will remain, despite the cessation of its manufacturing operations.

“It is fundamental that both Federal and State Governments support business activity that will create ongoing wealth and jobs and focus on relieving the burdens of unnecessary cost and regulation so that business can continue to meet the challenges of the increasingly competitive global economy.”

The Victorian Employers' Chamber of Commerce and Industry (VECCI) is the peak body for employers in Victoria, informing and servicing more than 15,000 members, customers and clients around the state.

www.vecci.org.au

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