The $500 million federal funding promised to Holden by the former government is a non-negotiable, Senator Nick Xenophon vowed today.

Speculating on negotiations with the new Abbott Government over its commitment to axe the carbon tax, Xenophon said offset payments and subsidies offered to Holden are not up for grabs

With more than 25 per cent of the Senate vote in his pocket, the popular senator has grabbed the Holden issue as his next cause.

“Tony Abbott wants to get rid of the carbon tax. but we need to have a debate on what the best way is to reduce carbon and at the same time save Holdens,” Xenophon told ABC radio this morning.

“Ripping away that $500 million is not acceptable.

“I’ll be speaking to (Holden managing director) Mike Devereux today.”

Former Prime Minister Kevin Rudd announced a $500 million car industry funding package midway through the election campaign.    The package came after industry anger over the Rudd Government’s decision to change the fringe benefits tax (FBT) regime for company cars, which had an immediate impact on fleet sales.

Xenophon said the FBT changes had to go.

“The FBT changes are wrong and should be rescinded,” he said.