Vic Govts industry package strikes a balance

The Victorian Government says the state's manufacturing and service industries will benefit from a new $245 million assistance package.

The package includes money to help local businesses find new markets and upgrade technology and a Government pledge to use more of their products and services.

Treasurer John Lenders says about 40 per cent of the cost to buy and maintain Melbourne's new trains will be spent locally.

"It is a very good balance," he said.

"We are seeking value for money for our taxpayers, with a local content built in."

Premier John Brumby has rejected claims of protectionism over the policy.

Mr Brumby says Victoria is not the first Government to adopt a strong local purchasing policy.

"The Buy America Act, preferences in every state of 6 to 12 per cent, Thailand up to 15 per cent price advantage and so it goes," he said.

"I think we compare very well in the world but we're doing a bit more here, on local content.

"I don't apologise for that, that's the right thing to do."

But Opposition leader Ted Baillieu says the Government is backing away from a 2003 commitment for at least 55 per cent local content, though he will not specify a target for a future Coalition government.

"I'd simply say that this one has reduced targets from the previous contracts, that makes no sense," he said.

Unions say the commitment should have been 50 per cent.

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Wed 19th November 2008 - 07:39pm