Suggestions that the Australian government is providing a subsidy to Holden for a new engine plant in Victoria have been rejected by Federal Industry Minister Nick Minchin, reports ABC News Online (19/12/00).

Referring to a story in The Australian newspaper, Minchin says that suggestions that the federal government would contribute $100 million are wrong.

He said that the Holden plant is eligible to get funding from a new industry-wide import duty credit scheme - to begin in January - but declined to comment on details of specific help for the Victorian plant.

Minchin said that the figure for overall Commonwealth help of $A100 million for the engine plant is too high and a gross exaggeration. The company tax to be paid by Holden would be more than any benefit the company would derive under the new investment scheme.