Alliance Party questions free trade link in Government attitude to rail purchase

The Alliance Party is asking whether the Government's obsession with free trade agreements is behind its refusal to support the manufacture of rail rolling stock in New Zealand by Kiwirail.

Alliance Party transport spokesperson Trevor Hanson says the Government's undermining of New Zealand industry and jobs is so blatant that it was disturbing.

"The case to build locally through Kiwirail, put together by the Rail and Maritime Transport Union along with local Government and local business, is so strong that there must be some motive behind the National Government's negative approach."

A study by economic consultancy BERL has estimated that building these trains at home would add between 770 to 1270 additional jobs and $232 to $250 million to GDP.

Mr Hanson says that successive National and Labour Government's have taken New Zealand into a global free trade "dead end" where New Zealand's ability to control their own economic destiny was threatened.

He says it is incredible that the National Government were prepared to undermine New Zealand industry, contribute to our balance of payments deficit, and condemn skilled New Zealand workers to the dole queue.

Mr Hanson says if the National Government continues to ignore the high rate of unemployment and exodus of our manufacturing industries and jobs out of New Zealand, the result will be New Zealand's descent into "developing nation" status, with inequality increasing and predictable "social breakdown".

He says the Alliance is strongly backing the campaign by the Rail and Maritime Transport Union to build rolling stock in New Zealand and the party also supported the expansion of a public owned rail system.

"The National Party should change its name to the Multinational Party – because they obviously have no interest in New Zealand's national interest."

ENDS

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