Why economists are slamming Albo for splashing taxpayer dollars to subside Chinese-made EVs like MG, BYD GWM and Teslas
Anthony Albanese has been slammed by economists for splashing taxpayer cash to subsidise Chinese electric cars when prices are already tipped to fall next year.
Despite Australia’s growing debt crisis, Labor this week announced low-interest loans to buy an EV.
The policy would cover workers earning less than $100,000 a year, which means anyone on less than the average, full-time salary.
But the taxpayer-subsidised loans would also be available for essential workers on six-figure pay, including police officers, teachers, firefighters and nurses.
The government is providing $150million to the Clean Energy Finance Corporation to provide interest on loans that are up to five percentage points lower than standard rates for personal loans.
This means someone could buy an electric car at an ultra-low interest rate of just 1.2 per cent compared with the Commonwealth Bank’s 6.2 per cent secured loan rate for those buying an electric vehicle.
But China, the world’s biggest manufacturer of EVs, is expected to ship many more EVs into Australia next year when incoming American President-elect Donald Trump imposes his 60 per cent tariff on Chinese goods sold in the US.
Daniel Wild, deputy executive director of the Institute of Public Affairs think tank, slammed the government move and said taxpayers should not be subsidising Chinese electric cars, which already command 80 per cent of Australia’s EV market.
Anthony Albanese has been slammed for splurging taxpayer money on subsidising Chinese electric cars when prices are already expected to fall next year anyway
‘In the middle of a cost-of-living crisis and with soaring government debt, it is remarkable that the Albanese government is using our tax dollars to create an ideal dumping ground for cheap Chinese EVs,’ he told Daily Mail Australia.
‘It is not the role of the federal government to incentivise the sale of foreign made products flooding our market.’
Climate Change and Energy Minister Chris Bowen argued the government policy would save EV buyers more than $8,000 on a $40,000 loan with a seven-year term.
‘Only the Albanese Labor Government is making sure more Australians are able to get behind the wheels of cheaper to run cars and begin saving on their commutes,’ he said.
‘Discounted loans help remove barriers to ownership, helping more Australians drive cars that can save them thousands of dollars a year.’
But Mr Wild said the policy would overwhelmingly favour Chinese interests, with top-selling Teslas built in Shanghai while BYDs, GWMs and Polestars are also Chinese-made.
‘The federal government’s climate and energy policies are a massive freekick to Chinese interests and put control of our energy and manufacturing future squarely in the hands of China,’ he said.
‘Australians have every right to ask what the subsidies they are being made to fund for EVs, as well as solar and wind turbines, are actually delivering?
The policy would overwhelmingly favour Chinese interests considering topping Teslas sold in Australia are made in Shanghai while BYDs, GWMs and Polestars also come from China
Daniel Wild, the deputy executive director of the Institute of Public Affairs think tank, said taxpayers should not be subsidising Chinese electric cars, which already command 80 per cent of Australia’s EV market
‘And that is a more expensive, more unreliable energy system which is not in our national interest.’
But the Federal Chamber of Automotive Industries endorsed Labor’s policy, despite Tesla and Polestar withdrawing from their membership in protest over claims it favours petrol and diesel car manufacturers.
Chief executive Tony Weber said: ‘Growth in demand for battery electric vehicles is easing in markets around the world as governments remove incentives and consumers face the realities of making the shift which includes higher purchasing prices, availability of recharging infrastructure and models that meet their work and recreation needs.’
A dozen Chinese car brands are expected to arrive in Australia during the next two years – including Zeekr, XPeng Motors, Geely which owns Volvo and Polestar, Lynk and Co, Leapmotor, Jaecoo, Changan and Nio.
Chinese cars sold in Australia don’t incur any import tariffs because of a 2015 free-trade agreement.
US President Joe Biden’s administration has this year been considering a ban on Chinese connected-car technology on national security grounds.
The Albanese government policy was announced on Thursday, a day after Treasury’s Mid-Year Economic and Fiscal Outlook revealed gross government debt levels would surpass the $1trillion mark in 2025-26, making up 36 per cent of gross domestic product.
Australia is also committed to reducing carbon emissions by 43 per cent by 2030, with diesel-powered utes and four-wheel drives still dominating the sales charts.
