Ford Aus requesting taxpayer assistance for r&d

[DRU842]

Originally Posted by stevz

Every single business in Australia spends money in the economy. Does that mean everybody should be entitled to taxpayer assistance?
Correct me if I'm wrong, but I thought the whole point of taxpayer assistance to the automotive industry was to offset both the high cost of manufacture here and the lack of tariff protection?
Ford will be doing R&D here for cars which will be manufactured & sold overseas at a profit - If they are making a profit then they can afford to pay their own R&D costs, simple.

Yes; every business is entitled to R&D incentives but the definitions & ultimate payment, as with most things wrung from the Govt Bureaucracy, is a break even scenario, for most, at best. Historically R&D incentives have been paid by Tax Concessions but as you rightly point out, if your not paying tax on the output how do you get your R&D incentive share?
Your wrong to assume that the taxpayer assistance was was to offset the high cost of manufacture; it was always intended to allow investment by the local producers to be world competitive - there is a difference.
The type of protection you refer to; high cost of manufacture and lack of tariff protection, can be fought by taking Anti-dumping Actions, via Australian Customs - whether there is tariff protection or not. That is where a company/country exports below the cost that goods are sold in there own market, including protection/subsidies given for production. I am not aware of anyone ever having taken this step in the Australian auto industry.
There are 1200 or so Ford highly skilled / trained employees, for the most part (I take note of your avatar), using infrastructure, paying taxes, using local contractors etc.
How is this NOT what Australians people have sought since the 'Clever Country' pursuit from the 1980's? Why are we pushing more people through University and other forms of higher education; if not for these types of roles?
Just because you can not 'touch' the output doesn't mean it does not have value.