Failure to support KiwiRail build shows lack of faith

Dunedin South MP Clare Curran says a lack of support for a KiwiRail build of Auckland’s electric trains shows no faith in Kiwi skills and capability.

“The strong independent economic case by reputable Berl Economics, which details the benefits of having Auckland’s 13 electric locomotives and 114 ‘cars’ built in New Zealand, creating up to 1275 new jobs, shows the arguments stack up for a New Zealand build,” Clare Curran said.

“This is supported by an internal KiwiRail capability report which outlines Kiwirail’s ability to undertake major rolling stock manufacturing projects. That report appears to contradict what KiwiRail CEO Jim Quinn said today when he claimed that his own organisation could not put in a competitive bid. Is this the view of the KiwiRail Board? And on what evidence is it based?”

Clare Curran said that for four months the Dunedin City Council, chamber of commerce, local engineering firms, Hillside Workshops, the rail union and all of Dunedin’s MPs have been working on this issue quietly behind the scenes. “We have been supported by the Hutt workshops and Hutt South MP Trevor Mallard.

“KiwiRail has been aware of the mounting public support, backed by hard evidence, and you’d think they’d take it seriously. We have two rail workshops with considerable capacity and skill, but it seems Transport Minister Steven Joyce and Mr Quinn are impervious to this and intent on an overseas build.

“Mr Joyce even seems to be scotching a KiwiRail bid for the work, and has made dismissive and derisory comments about New Zealand’s rail workforce.

“It’s my understanding he’s never visited either the Hillside or Hutt workshops, but is relying on Mr Quinn’s views. It’s extraordinary that Mr Quinn, not in the job for long, would dismiss out of hand his organisation’s own capacity. Where’s his evidence? I understand the evidence points to the contrary,” Clare Curran said.

The Berl report points out that while New Zealand could produce the rolling stock more cheaply than Europe or North America, it may be possible for Asian sources to supply at a cheaper price, she said. “But the quality and expected life could be less and it is possible the ‘whole of life’ cost of the rolling stock could end up higher than if it was made in New Zealand.

“Why can’t we build these electric trains here? Perhaps not every single bit of them, but we do have the skills and capacity. And isn’t there a very strong case for keeping Kiwi jobs and skills Kiwi?”

ENDS

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