<a href="http://www.gmagazine.com.au/blogs/leon#">The Business of Green</a>

The Business of Green

Money matters in the green world, by Leon Gettler.

Will Rudd's car package deliver greener cars?

hybrid car

Credit: EveryStockPhoto

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Much has been said about the Rudd Government's $6.2 billion automatotive industry assistance package, which is designed to rescue Australia's car industry and encourage the big car companies to make major "green car" investments in Australia.

But there are serious questions about whether it will encourage green cars. I also have concerns about the package for another reason.

To my way of thinking, the Government missed out on an opportunity to deliver a complete transport package. If we are serious about a more sustainable future, we should not only be looking at green cars but also public transport.

Apart from the billions of dollars bailing out car manufacturers, how about more money for rail, buses, trams and bike paths?

The other question is whether car makers are ready for it. Analysts say Holden and Ford are too cash-strapped and don't have the money to develop green cars.

And the future of the car industry globally looks grim. With the economic crisis, people are not rushing out to buy cars and that means there is less cash for investment.

What do you think of Kevin Rudd's car package? Do you think it will create more green cars? Or is that just spin?