CAR SALES DROP AS BAILLIEU INCREASES REGISTRATION

Posted on 18. Jan, 2012 in News

New figures released today show the Baillieu Government’s decision to increase car registration and stamp duty was short-sighted, Shadow Treasurer Tim Holding said.

Australian Bureau of Statistics figures show that in December – the same month the Baillieu Government announced it would increase fees for vehicle owners – car sales in Victoria slumped by 1.5 per cent in just one month.

Car sales across the state fell by 4.3 per cent during the year – more than the national average of 3 per cent.

“These figures are just the latest evidence that Victoria’s economy is slipping backwards,” Mr Holding said.

“The Baillieu Government should be supporting jobs and industry, but instead has chosen to increase fees for car owners that could have serious flow-on effects for the automotive sector.”

Under Government changes, motor vehicle registration will increase by $35 per vehicle and the rate of stamp duty on new cars will rise from 2.5 per cent to 3.0 per cent.

“I’m concerned that when the price increases take effect, car sale figures will fall even further,” Mr Holding said.

“The Premier needs to admit that his cash grab to boost his budget bottom-line will cost jobs in the automotive industry.”

Mr Holding said the Baillieu Government’s failure to outline a jobs plan was hurting Victoria.

“The Premier claims the economy is his top priority but securing and creating jobs will take more than just words,” he said.

“Empty rhetoric without a solid plan to grow the economy means nothing to Victorian families.

“An economy going backwards will lead to fewer jobs for Victorians and that’s why Mr Baillieu needs a jobs plan now.”

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