Parliament

Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search

 

Procurement policy not just about a fair shake of the stick

Media Release: Rail & Maritime Transport Union (RMTU)
Friday 8 March, 2013

Procurement policy not just about a fair shake of the stick

Government procurement policy needs to be much more than just giving firms a “fair shake of the stick” as Steve Joyce put it this morning, the union for rail workers said.

This morning Steven Joyce commented on proposed changes to government procurement policy, including requirements that New Zealand firms are consulted before tender documents are prepared, and government taking a ‘whole of life’ analysis of procurement.

Wayne Butson, General Secretary of the Rail and Maritime Transport Union, said it was galling to hear Steven Joyce talk about whole of life cost analysis, after he so flatly rejected exactly that approach in the 2010 BERL report on the Auckland train electrification project.

“Steven Joyce refused to step in as shareholding minister and give KiwiRail a steer to take on a whole of life analysis with the build of Auckland’s trains, and opted instead for a focus on the cheapest products available.”

“He then assured rail workers on Close Up in May 2010 that they’d have a good chance of building the rolling stock, but that job went overseas also, and Dunedin lost its Hillside workshops.”

“As Dunedin workers, business leaders and the City Council all pointed out, value is not just upfront costs. It is also about ongoing repairs and maintenance work and the primary and secondary jobs that are created and industries supported when goods are manufactured locally.”

“KiwiRail suffered maintenance problems with its flat top wagons made by China CNR, and also had major commissioning issues with the DL locomotives in 2010, relating to their suspension, traction motors and noise.”

“In fact, in the month of February last passed, of the 20 locomotives from China in the KiwiRail network, there were 3 faults registered. Compare this to 6 faults with the 85 locomotives in operation that were built in 1951 – and we can see that on a proportional basis, the recent China built locomotives are causing many more headaches for KiwiRail than those built 62 years ago!”

“It is also rubbish to hide behind trade rules. All our trading competitor countries have much stronger government procurement rules.”

Wayne Butson said the RMTU would carefully analyse the government’s proposals when they were issued, and said that to be of any use, they needed to take the lead from other countries like Australia, where Industry Participation Plans set out in detail how local firms should be prioritised.

Ends.


~~~~~~~~

Background re BERL report
Economics consultancy BERL estimated in 2010 that building the trains required for the Auckland electrification project in New Zealand would have added between 770 to 1270 additional jobs, $232 to $250 million to GDP and an increase in crown revenue by a net $65 million to $70 million. A copy of the report is here http://www.rmtunion.org.nz/documents/downloads/kiwirail-build-in-nz/BERL_Report-Economic_benefits_of_building_rolling_stock_in_New_Zealand_Final.pdf

Background notes re: Steven Joyce’s 2010 comments:
When Steven Joyce rejected the BERL report on the Close Up programme in 2010, he held out hope that the flat top wagons would be built locally. The Minister said: “There will be lots of work for these guys, there’s no doubt about that, because they do a lot of things well and there’s a big rolling stock replenishment and replacement exercise that’s coming down the pipeline (Steven Joyce, Close Up, May 3 2010)” Despite this, the contract for this work went overseas, like the Auckland Electric Multiple Units. The Close Up interview is here: http://tvnz.co.nz/close-up/get-kiwis-do-locomotion-3509198/video. (The comments noted above are at 9 minutes 59 seconds.)

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On The Budget

It may seem like Oliver to be so bold as to ask the Finance Minister for more gruel – but what the Dickens, Steven Joyce… is this Budget really as good as it gets?

Supposedly, the public was going to receive significant rewards – an election year lolly scramble no less – for the eight years of belt tightening that they’ve endured, and for the rundown of essential public services.

Well, what Budget 2017 delivered instead in Education and in Health were allocations barely sufficient to maintain the current levels of service delivery More>>

Scoop Full Coverage: of Budget Announcements & Reaction
Latest: Scoop Search

 
 

Carer Settlement: Threat Of Staff Exodus In Mental Health

As a result of the recent pay rise awarded to their aged care and disability sector colleagues, many staff in non-government mental health and addiction organisations are considering leaving to join these workforces. More>>

ALSO:

Climate Policy: New Zealand Set To Blow Its Carbon Budget By 27%

The Government’s Greenhouse Gas Inventory shows New Zealand is set to release 647.5 million tonnes of carbon emissions between 2013 and 2020 – 137 million tonnes more than we are allowed under the Kyoto Protocol. More>>

ALSO:

Earlier:

Christchurch Considers Cathedral, Stadium: Cathedral Working Group Report Released

“About half of Christchurch wants to see the cathedral reinstated, the other half wants something new and more modern, but really, everyone just needs a decision." More>>

ALSO:

Auditor-General Stands Down For Investigation: Gordon Campbell On (Not) Taking Responsibility

So Martin Matthews, our current Auditor-General wishes he could have detected “earlier” the fraud that occurred on his watch at the Ministry of Transport. Hmmm. But he could have detected it earlier, surely? That’s the point. More>>

ALSO:

NGOs Pleased: Govt To Halt Collection Of Client Data

Brenda Pilott, the chair of ComVoices and national manager of Social Service Providers Aotearoa, congratulates the government on its decision to call a halt to the collection of individual client data until the concerns of not-for-profit service providers have been worked through. More>>

ALSO:

Gosh: Blasphemy Law Repeal Struck Down

Chris Hipkins, the MP who tabled a Supplementary Order Paper to add our Blasphemy Law to the Statutes Repeal Bill, said this was a "sad day for freedom of speech, tolerance, and leadership". More>>

ALSO:

 
 
 
 

Opening The Election Supporters

 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

Featured InfoPages

Opening the Election