Australia's $70 Million Handout for Toyota Hybrid Car

The Australian Government announced $35 Millions Toyota which was matched by another $35 Million by the State government.The press reported that this incentive will create 200 new jobs . Calculations based on that report, would make it $350,000 per job. May be, other industries, could take a cue. They could work out a plan to give jobs at the rate of $350,000 per job and approach this Government when it is in a good mood. It could be for the popular environment friendly and energy saving industries. Don't be surprised if the govt. gets fast applications and representations from majority of the industries.They may want to take as much as possible before this type of handouts empty the coffers.

Labour Govt. and Economics	Incentives by other Govts.
Have you ever thought Labour Governments can handout $35 million to a single Car manufacturer? Yes it is true. The main assumption about Kevin Rudd's cheerful present is this Hybrid is it's fuel efficiency. We are discussing Other Government incentives and comparisons of the car in question : First of all Hybrid technology and hybrid Cars by Toyota are not new. Toyota's Hybrid Prius, is in the market from 1997and infact, last month its 1 million sales was completed. Then why does it look like a new technology for Australian Government for a handout of $35 million? The federal opposition has cautiously welcomed news that a hybrid car will be built in Australia by Japanese motor giant Toyota. But Opposition Leader Brendan Nelson says government funding for the project must be scrutinised to ensure it is only used for that project alone. The announcement drew criticism that the Rudd Government has played favourites by awarding $35 million to Toyota for its Australian hybrid car without following due process, the opposition says. Comments by Toyota's president raised serious questions about whether Australian taxpayers should be investing in the project, opposition industry spokesman Eric Abetz said. In announcing the decision in Nagoya, Japan, the car giant's president, Katsuaki Watanabe, said Toyota “only recently” heard it would receive a $35 million subsidy from the Australian government's Green Car Fund. “So we are not sure how we will use it,” Mr Watanabe said. The fact Toyota was yet to decide how to spend the money was “very interesting”, Senator Abetz said in a statement. “Inevitably, it raises questions about the need for the Australian taxpayer to invest in this project.” The coalition had reservations about Labor's fund because “car manufacturers are moving towards these sorts of cars anyway” due to consumer demand. Labor also needed to say whether it had promised to purchase a number of the hybrid Camrys for the government car fleet, Senator Abetz said. Prime Minister Kevin Rudd should not be “picking winners and favourites” among car manufacturers. “It's concerning the government is pre-empting its own review about how the Green Car Fund will be spent,” Senator Abetz said.	There are several incentives offered to Hybrid Cars, without targetting a particular car Government incentives to Car owners/buyers: A number of governments have incentives that are intended to encourage hybrid car sales. In Belgium, the national government offers reductions in the purchase price of up to 15% for buying cars that have lower CO2 exhaust. The federal government in Canada offers to those who buy or lease hybrid cars a rebate. Some provincial governments also offer incentives such as in British Columbia, Manitoba, Quebec, Ontario, and Prince Edward Island. Parking related incentives: In the United Kingdom, incentives are mostly parking-related. Parking incentives exists in Richmond upon Thames (south west London)[50], Westminster (Central London) for resident parking permits, Winchester (now discontinued), Manchester, and Brighton have similar plans. Drivers in London can register for an exemption from the £8 daily congestion charge Some of the incentives in the United Kingdom have been criticized in the press given that non-hybrid cars, some of which have better fuel economy, are not afforded the same incentives. Tax Credits and Toll related discounts In the United States, the federal government offers a tax credit to purchasers until a certain number of cars have been sold by a manufacturer. This has ranged from US$787 to $3,150, which expired in 2007 for hybrids sold by Toyota. Some state governments, including Colorado, Connecticut, Illinois offer tax incentives. Hybrid engine automobiles are exempt from high-occupancy vehicle lane restrictions(like Australia's T2 lanes) in some U.S. states like California (currently until January 1, 2011) Los Angeles and San Jose. California had exempted hybrid cars from paying for street parking. New York State offers a special "green" version of their E-Z-Pass toll payment tag for Prius owners who use the NYS Thruway system, which gives the owners a 10% discount on tolls. Differential taxation In the Netherlands, the government has lowered the tax for cars with CO2 emissions below a certain level (such as the Toyota Prius) to 14%. The tax on all other class cars has been raised from 22 to 25%. As a result, in the month January alone, more than 1800 cars have been sold. The importer has already indicated that he can no longer meet the demand for the year 2008. In Sweden, private purchasers of the Toyota Prius (or any other vehicle in the environmentally less destructive class) are awarded SEK 10,000 (roughly USD 1700, €1100) after six months of ownership, in order to stimulate sales and use of such vehicles. The subsidy program has been very successful. .	Corporate Incentives Several U.S. companies offer employees incentives. Bank of America will reimburse $3000 on the purchase of new hybrid vehicles to full- and part-time associates working more than 20 hours per week. Google, software company Hyperion Solutions, and organic food and drink producer Clif Bar & Co offer employees a $5000 credit toward their purchase of certain hybrid vehicles including the Prius. Integrated Archive Systems, a Palo Alto IT company, offers a $10,000 subsidy toward the purchase of hybrid vehicles to full-time employees employed more than one year. Clothing companies Timberland and Patagonia, law firm DLA Piper, non-profit American Jewish Committee, software publisher Topics Entertainment, and research firm ABR, Inc. are among companies offering eligible employees significant discounts on certain hybrid vehicles including the Prius Comparisons of Toyota Hybrid model with other fuel efficient models Travelers Companies, a large insurance company, offers hybrid owners a 10% discount on auto insurance in most states. The Farmers Insurance Group offers a similar discount of up to 10% in most states We don't see any other Government offering a particular company(Toyota) a handout of $35 million as Mr.Kevin Rudd offered now. We see the Comparisons with other vehicles, done Several publications have tested the fuel economy of the Prius, some have compared it directly with other cars. Comparisons: Two writers from the UK's Sunday Times did a comparison of the Prius with another car in long distance town and country driving. The results showed that the other car, a BMW 520d SE with a 177 bhp (132 kW) diesel engine and regenerative braking, averaged 50.3 mpg–imp (5.62 L/100 km / 41.9 mpg–U.S.) whilst the Prius averaged 48.1 mpg–imp (5.87 L/100 km / 40 mpg–U.S.) over exactly the same route. The comparison was performed on a journey of 877 km from London to Geneva, including 160 km of urban driving, about 320 km of driving on rural roads, and about 320 km of motorway driving at speeds of up to 126 km/h on one French autoroute. Auto Express magazine performed independent fuel efficiency tests, on public roads, on a number of hatchbacks, and in August 2007 published their list of the ten most efficient. The Prius achieved only10th place in the list, returning 41.5 mpg–imp (6.81 L/100 km / 34.6 mpg–U.S.). A Citroën C4 Coupé 1.6 HDi got 1st place with 49.6 mpg–imp (5.7 L/100 km / 41.3 mpg–U.S.). IN United Kingdom, the official fuel consumption data, provided by the Department for Transport, rates the Prius as: 56.5 mpg–imp (5 L/100 km / 47 mpg–U.S.) urban, 67.3 mpg–imp (4.2 L/100 km / 56 mpg–U.S.) extra urban and 65.7 mpg–imp (4.3 L/100 km / 54.7 mpg–U.S.) combined. The Prius is tied with the MINI Cooper D as the THIRD least CO2-emitting vehicles behind the tied Volkswagen Polo 1.4 TDI and SEAT Ibiza 1.4 TDI.[5].
What the Industry people are saying? If other cars are performing better in fuel efficiency, why is Toyota Car getting $35 million from Government? We look at how the Car Industry in Australia talks about the decision: The peak body representing the car industry, the Federal Chamber of Automotive Industries, said Toyota's decision to begin production of a hybrid Camry in Australia from 2010 is a significant and exciting development. “This is a decisive step and demonstrates the capability of local car makers to help address environmental challenges,” FCAI chief executive Andrew McKellar said. He described the production of more fuel efficient, low-emission vehicles as a key step to maintaining “a successful and sustainable” manufacturing industry in Australia. The global car giant has announced it hopes to make 10,000 of the fuel-efficient cars each year at its Altona plant in Melbourne. Each car would save the average driver $1,000 a year in petrol costs. “Australian vehicle manufacturers are exploring a range of opportunities to achieve enhanced fuel efficiency and reduced carbon emissions,” Mr McKellar said. He said Toyota's decision to produce the hybrid Camry locally is a tangible demonstration of the capability and skill that exists within the Australian automotive industry. The automotive industry is Australia's undertakes about $600 million worth of research and development a year. Mr McKellar says it is crucial that the outcomes of the industry review, headed by Steve Bracks, provide the right policy settings to enable more green-car initiatives to be taken up by local manufacturers. But Industry Minister Kim Carr, who's in Nagoya, denied any backroom deals had been done. “This arrangement is not dependant upon the commonwealth buying any specific number of vehicles from Toyota given we have suppliers from the three major manufacturers now,” Senator Carr told ABC Radio. Senator Carr said there was an opportunity to expand the commonwealth's green car purchases “but that will take some time”. He also rejected any suggestions the deal was rushed, saying talks with Toyota Australia began in early December last year, a week after the government was elected. Taxpayers would be getting good value for their $35 million, he said, with opportunities for “significant export expansion” and 200 new jobs in Melbourne. In the longer term, the hybrid Camry would help transform the entire industry. “I've got no doubt the other motor companies will follow suit in transforming their existing technologies and the introduction of new technologies,” Senator Carr said.

Labour Govt. and Economics

Incentives by other Govts.

Have you ever thought Labour Governments can handout $35 million to a single Car manufacturer? Yes it is true.

The main assumption about Kevin Rudd's cheerful present is this Hybrid is it's fuel efficiency.

We are discussing Other Government incentives and comparisons of the car in question : First of all Hybrid technology and hybrid Cars by Toyota are not new.

Toyota's Hybrid Prius, is in the market from 1997and infact, last month its 1 million sales was completed.

Then why does it look like a new technology for Australian Government for a handout of $35 million?

The federal opposition has cautiously welcomed news that a hybrid car will be built in Australia by Japanese motor giant Toyota.

But Opposition Leader Brendan Nelson says government funding for the project must be scrutinised to ensure it is only used for that project alone.

The announcement drew criticism that the Rudd Government has played favourites by awarding $35 million to Toyota for its Australian hybrid car without following due process, the opposition says.

Comments by Toyota's president raised serious questions about whether Australian taxpayers should be investing in the project, opposition industry spokesman Eric Abetz said.

In announcing the decision in Nagoya, Japan, the car giant's president, Katsuaki Watanabe, said Toyota “only recently” heard it would receive a $35 million subsidy from the Australian government's Green Car Fund.

“So we are not sure how we will use it,” Mr Watanabe said.

The fact Toyota was yet to decide how to spend the money was “very interesting”, Senator Abetz said in a statement.

“Inevitably, it raises questions about the need for the Australian taxpayer to invest in this project.”

The coalition had reservations about Labor's fund because “car manufacturers are moving towards these sorts of cars anyway” due to consumer demand.

Labor also needed to say whether it had promised to purchase a number of the hybrid Camrys for the government car fleet, Senator Abetz said.

Prime Minister Kevin Rudd should not be “picking winners and favourites” among car manufacturers.

“It's concerning the government is pre-empting its own review about how the Green Car Fund will be spent,” Senator Abetz said.

There are several incentives offered to Hybrid Cars, without targetting a particular car

Government incentives to Car owners/buyers:

A number of governments have incentives that are intended to encourage hybrid car sales. In Belgium, the national government offers reductions in the purchase price of up to 15% for buying cars that have lower CO2 exhaust.

The federal government in Canada offers to those who buy or lease hybrid cars a rebate. Some provincial governments also offer incentives such as in British Columbia, Manitoba, Quebec, Ontario, and Prince Edward Island.

Parking related incentives:

In the United Kingdom, incentives are mostly parking-related. Parking incentives exists in Richmond upon Thames (south west London)[50], Westminster (Central London) for resident parking permits, Winchester (now discontinued), Manchester, and Brighton have similar plans. Drivers in London can register for an exemption from the £8 daily congestion charge Some of the incentives in the United Kingdom have been criticized in the press given that non-hybrid cars, some of which have better fuel economy, are not afforded the same incentives.

Tax Credits and Toll related discounts

In the United States, the federal government offers a tax credit to purchasers until a certain number of cars have been sold by a manufacturer. This has ranged from US$787 to $3,150, which expired in 2007 for hybrids sold by Toyota. Some state governments, including Colorado, Connecticut, Illinois offer tax incentives. Hybrid engine automobiles are exempt from high-occupancy vehicle lane restrictions(like Australia's T2 lanes) in some U.S. states like California (currently until January 1, 2011) Los Angeles and San Jose. California had exempted hybrid cars from paying for street parking. New York State offers a special "green" version of their E-Z-Pass toll payment tag for Prius owners who use the NYS Thruway system, which gives the owners a 10% discount on tolls.

Differential taxation

In the Netherlands, the government has lowered the tax for cars with CO2 emissions below a certain level (such as the Toyota Prius) to 14%. The tax on all other class cars has been raised from 22 to 25%. As a result, in the month January alone, more than 1800 cars have been sold. The importer has already indicated that he can no longer meet the demand for the year 2008.

In Sweden, private purchasers of the Toyota Prius (or any other vehicle in the environmentally less destructive class) are awarded SEK 10,000 (roughly USD 1700, €1100) after six months of ownership, in order to stimulate sales and use of such vehicles. The subsidy program has been very successful.

Corporate Incentives Several U.S. companies offer employees incentives. Bank of America will reimburse $3000 on the purchase of new hybrid vehicles to full- and part-time associates working more than 20 hours per week. Google, software company Hyperion Solutions, and organic food and drink producer Clif Bar & Co offer employees a $5000 credit toward their purchase of certain hybrid vehicles including the Prius. Integrated Archive Systems, a Palo Alto IT company, offers a $10,000 subsidy toward the purchase of hybrid vehicles to full-time employees employed more than one year. Clothing companies Timberland and Patagonia, law firm DLA Piper, non-profit American Jewish Committee, software publisher Topics Entertainment, and research firm ABR, Inc. are among companies offering eligible employees significant discounts on certain hybrid vehicles including the Prius

Comparisons of Toyota Hybrid model with other fuel efficient models

Travelers Companies, a large insurance company, offers hybrid owners a 10% discount on auto insurance in most states. The Farmers Insurance Group offers a similar discount of up to 10% in most states We don't see any other Government offering a particular company(Toyota) a handout of $35 million as Mr.Kevin Rudd offered now.

We see the Comparisons with other vehicles, done
Several publications have tested the fuel economy of the Prius, some have compared it directly with other cars.
Comparisons:

Two writers from the UK's Sunday Times did a comparison of the Prius with another car in long distance town and country driving. The results showed that the other car, a BMW 520d SE with a 177 bhp (132 kW) diesel engine and regenerative braking, averaged 50.3 mpg–imp (5.62 L/100 km / 41.9 mpg–U.S.) whilst the Prius averaged 48.1 mpg–imp (5.87 L/100 km / 40 mpg–U.S.) over exactly the same route. The comparison was performed on a journey of 877 km from London to Geneva, including 160 km of urban driving, about 320 km of driving on rural roads, and about 320 km of motorway driving at speeds of up to 126 km/h on one French autoroute.

Auto Express magazine performed independent fuel efficiency tests, on public roads, on a number of hatchbacks, and in August 2007 published their list of the ten most efficient. The Prius achieved only10th place in the list, returning 41.5 mpg–imp (6.81 L/100 km / 34.6 mpg–U.S.). A Citroën C4 Coupé 1.6 HDi got 1st place with 49.6 mpg–imp (5.7 L/100 km / 41.3 mpg–U.S.).

IN United Kingdom, the official fuel consumption data, provided by the Department for Transport, rates the Prius as: 56.5 mpg–imp (5 L/100 km / 47 mpg–U.S.) urban, 67.3 mpg–imp (4.2 L/100 km / 56 mpg–U.S.) extra urban and 65.7 mpg–imp (4.3 L/100 km / 54.7 mpg–U.S.) combined. The Prius is tied with the MINI Cooper D as the THIRD least CO2-emitting vehicles behind the tied Volkswagen Polo 1.4 TDI and SEAT Ibiza 1.4 TDI.[5].

What the Industry people are saying?

If other cars are performing better in fuel efficiency, why is Toyota Car getting $35 million from Government? We look at how the Car Industry in Australia talks about the decision:

The peak body representing the car industry, the Federal Chamber of Automotive Industries, said Toyota's decision to begin production of a hybrid Camry in Australia from 2010 is a significant and exciting development.

“This is a decisive step and demonstrates the capability of local car makers to help address environmental challenges,” FCAI chief executive Andrew McKellar said.

He described the production of more fuel efficient, low-emission vehicles as a key step to maintaining “a successful and sustainable” manufacturing industry in Australia.

The global car giant has announced it hopes to make 10,000 of the fuel-efficient cars each year at its Altona plant in Melbourne. Each car would save the average driver $1,000 a year in petrol costs.

“Australian vehicle manufacturers are exploring a range of opportunities to achieve enhanced fuel efficiency and reduced carbon emissions,” Mr McKellar said.

He said Toyota's decision to produce the hybrid Camry locally is a tangible demonstration of the capability and skill that exists within the Australian automotive industry.

The automotive industry is Australia's undertakes about $600 million worth of research and development a year.

Mr McKellar says it is crucial that the outcomes of the industry review, headed by Steve Bracks, provide the right policy settings to enable more green-car initiatives to be taken up by local manufacturers.

But Industry Minister Kim Carr, who's in Nagoya, denied any backroom deals had been done.

“This arrangement is not dependant upon the commonwealth buying any specific number of vehicles from Toyota given we have suppliers from the three major manufacturers now,” Senator Carr told ABC Radio.

Senator Carr said there was an opportunity to expand the commonwealth's green car purchases “but that will take some time”.

He also rejected any suggestions the deal was rushed, saying talks with Toyota Australia began in early December last year, a week after the government was elected.

Taxpayers would be getting good value for their $35 million, he said, with opportunities for “significant export expansion” and 200 new jobs in Melbourne.

In the longer term, the hybrid Camry would help transform the entire industry.

“I've got no doubt the other motor companies will follow suit in transforming their existing technologies and the introduction of new technologies,” Senator Carr said.