SOUTH Australian Premier Jay Weatherill will hold face-to-face talks with federal Industry Minister Kim Carr on Friday over proposed tax changes expected to impact on the car industry.
Car producers and other auto industry groups have warned that the changes to fringe benefits tax arrangements will lead to a fall in vehicle sales.
But South Australian Attorney-General John Rau said it remained unclear exactly what the impact might be.
He said the SA premier had already spoken by phone with Treasurer Chris Bowen and would meet Senator Carr on Friday to "flesh out" the issue and gauge how much concern it presented for local car producer Holden and the wider automotive sector in South Australia.
"When any of us read in the paper the suggestion that there is going to be a reduction in demand for Australian-produced motor vehicles, that's a matter that we pay attention to," Mr Rau told reporters on Thursday.
But Mr Rau said the government was exploring whether or not the forecasts in the media were actually representative of what might happen.
"We don't want to become panicked by a group of individuals who, perhaps for self-interested reasons, have an agitation about their business," he said.
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