Polling shows the Liberal Party ahead of Labor in marginal Sydney seats
A FIRED up Kevin Rudd has told Holden workers and union officials he knows he is in a tough spot but is determined to "fight" his way out of his trailing position in polls to deliver a $2 billion package for the car industry.
He drew on the legacy of predecessor Ben Chifley, who started the car industry in Australia, to pledge to deliver $500 million first and then $300 million a year next decade.
In a slip, he briefly confused Holden with Ford, but quickly corrected himself in a speech to workers and union officials.
Earlier, Holden workers, including technical officer Shawn Matthews whose family would have given around a century's service to the company between them, met Mr Rudd at a union-organised BBQ in Adelaide.
Mr Matthews was called to the front as Mr Rudd spoke of his family and others affected by the uncertainty over the future of the car industry in Australia, which has been hit by the high Australian dollar and other manufacturing costs.
The industry also took a hit from the carbon tax and the government's decision to change FBT on company cars to raise almost $2 billion.
Despite reports of Labor's campaign trailing the Coalition, Mr Rudd said he is determined to win.
"I've been in a few tough spots before and I've managed to fight my way forward," he said.
"I intend to fight my way forward again, part of my motivation is looking in the faces of you as good, honest, ordinary families doing an honest day's work making the cars Australians want to drive."
Mr Matthews said he was delighted Labor had pledged $2 billion in assistance.
Holden is yet to confirm if it will keep manufacturing in Australia, with a decision to come after the election.
"I think it is great news, it will keep us going for the long term," he said.
Mr Rudd earlier challenged Opposition Leader Tony Abbott to outline his policies on the car industry
"The big challenge for Mr Abbott today is very simple. How will his cuts effectively destroy the Australia car making industry," he said in Melbourne this morning.
"You can't dodge this one, Mr Abbott. We need a plain and simple answer. Today."
Speaking at an event in Perth, Mr Abbott dismissed the Prime Minister's pledge for $500 million in extra assistance for the car industry from 2016.
"He sees some bad polls, he knows he's got trouble in his marginal seats so he's charging down the street, waving a blank cheque at the auto industry." he said.
"It's a band-aid on a bullet wound."
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Mr Abbott said he would sit down with the car industry after the election and work out a package to assist the sector.
"Obviously I want the motor industry to continue in this country, we all want the motor industry to continue in this country," he said.
"But if we want the motor industry to continue its got to be more competitive and it needs to develop an export plan. That's why we'd want to sit down and with Ford and Holden if we win the election on September 7.
Independent South Australian senator Nick Xenophon backed the funding boost.
"It's not in the national interest to lose 16,000 jobs in South Australia," Senator Xenophon told ABC TV this morning.
"This industry is at tipping point. Do we tip it over into future prosperity ... long term jobs growth or do we write-off this industry and say see you later?"
Senator Xenophon reiterated his intention to block the Rudd government changes to fringe benefit tax treatment of car use.
He also flagged blocking the coalition's plan to cut $500 million in car industry assistance.
The government's plan would support car manufacturers and be redefined to provide assistance to automotive research and development and about 150 component manufacturers.
The Australian Manufacturing Workers Union today welcomed Labor's plan.
"The coalition must abandon its plan to cut $500 million in government co-investment that is putting hundreds of thousands of jobs at risk," AMWU national secretary Paul Bastian said.
But shadow treasurer Joe Hockey said Labor was taking from the car industry in the form of $1.8 billion in taxes, while trying to claim credit for returning $500 million.
"When it comes to Kevin Rudd and money he's reckless ... with money, there's no accountability, there's no costings," Mr
SYDNEY POLL SHOCK
Mr Rudd was pushing the car rescue package after new polls showed Labor trailing the Coalition in three of four hotly contested Sydney seats where Mr Abbott also trumped Mr Rudd as preferred prime minister.
The Reachtel polls, commissioned by Fairfax Media and conducted on August 15, showed that in the seat of McMahon, held by Treasurer Chris Bowen, Labor is behind the Coalition on a two-party preferred basis by 47 to 53 per cent.
But shadow treasurer Joe Hockey has brushed off suggestions that the coalition is now a shoo-in to form government after the September 7 election.
"Can I tell you, I have seen polls go up and down over the last three years," he told reporters this morning.
"We're not going to respond to that sort of public polling."
Nor would he concede the coalition was a favourite.
"It's not a betting race," Mr Hockey said.
The polling showed that in the west Sydney seat of McMahon, held by Treasurer Chris Bowen, Labor is behind the coalition on a two-party preferred basis by 47 to 53 per cent.
In former prime minister John Howard's old seat of Bennelong, taken by Liberal John Alexander in 2010, Labor's recently installed candidate Jason Yat-Sen Li is trailing on 35 per cent to his rival's 65 per cent.
In Kingsford Smith, vacated by Peter Garrett, Labor's Matt Thistlethwaite is lagging his rival by 48 to 52 per cent, the polling shows.
Only Jason Clare's seat of Blaxland holds any good news for Labor, with the Justice and Home Affairs Minister ahead of Liberal Anthony Khouri by 52 to 48 per cent.
Meanwhile, in the Queensland seat of Forde, polling for the Australian Financial Review shows Labor candidate and former premier Peter Beattie markedly trailing the incumbent coalition member Bert van Manen.
-with AAP
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