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Labour requests OAG investigation into KiwiRail

Dunedin South MP
26 November 2012 MEDIA STATEMENT

Labour requests OAG investigation into KiwiRail

Labour has asked the Office of the Auditor General to investigate KiwiRail’s tendering and procurement process for rail wagons, says Labour’s Dunedin South MP Clare Curran.

“I am deeply concerned that KiwiRail has made poor decisions in procuring rail wagons that has led to the loss of over 90 jobs at Dunedin’s Hillside workshops. The issue must be investigated so the public can understand what has gone on.

“There are three key areas I request that the OAG investigate.

“The Government has consistently claimed it has not issued directions to require Kiwirail to choose the lowest cost bidder for rail wagons, or to require Kiwirail to run down and divest itself of core capacity at Hillside. I don’t believe this is true.

“The second issue is whether the tendering decision to purchase 300 wagons from the China North Rail Company was focussed on the lowest price, given the serious flaws that have been exposed in the rail wagons and locomotives purchased by the Government offshore.

“The third issue is new information that KiwiRail management tried to secure work for Hillside but was knocked back by the KiwiRail Board.

“The letter follows one I sent to the Auditor General in August asking the office to investigate the adequacy of evaluations for the contracts entered into between KiwiRail and China North Rail.

“KiwiRail’s procurement decisions have directly led to the loss of 90 skilled jobs at Hillside and potentially hundreds of flow-on jobs and work for the region.

“This issue must be investigated thoroughly,” says Clare Curran.



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