We couldn't save Toyota jobs, says Aussie govt

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Australian Manufacturing Minister Kim Carr knew last year Toyota was contemplating cuts to its workforce, but has denied the federal government should have done more to save those jobs.

Toyota has axed 350 jobs from its Altona plant in Victoria, citing global economic stresses, a high Australian dollar and a resulting dip in demand.

Senator Carr has been in constant talks with the manufacturer about its troubles and said he knew last year job losses were on the cards.

But he rejected a suggestion the government should have intervened.

"Governments do not run the car companies," he told reporters in Canberra today.

"We do not issue edicts to people in terms of the number of folks that can be employed."

Senator Carr said all assistance would be provided to the workers to help them find another job, but conceded Australia's automotive industry was going through lean times and that future cuts could not be ruled out.

"We will not undertake this: that every single individual will be able to enjoy the security of employment forever," Senator Carr said.

"And the company doesn't operate on the basis of asking for a bailout or a handout.

"That's not the way it works. We don't do that."

Toyota told its 4683 employees on Monday that 350 of them would be given compulsory redundancies, noting vehicle production had fallen from 149,000 cars in 2007 to 94,000 last year.

Senator Carr earlier hit out over claims Australian taxpayers were not getting their money's worth for the $3.4 billion (NZ$4.4bn) worth of assistance being forked out for the struggling car industry.

It was worth less than a ticket to the football per person, he said, compared to those in the United States who are effectively paying $264 each.

Senator Carr remains optimistic about the sector's future and says the government will focus on investment and boosting confidence to get it ticking over again, rather than addressing the high Aussie dollar.

Meanwhile, Victorian Premier Ted Baillieu said he is considering increasing funding to car manufacturing.

"Yes, but I do have to say the states contribute modestly in that regard and that is very much a Commonwealth effort," he told Fairfax Radio.

Boosting the industry would be a priority when he leads a trade mission to India next month, he said.