16 JUNE 2016

Shady Deal on Trains Comes Back to Haunt Govt

A backroom deal by the PM over the purchase of KiwiRail locomotives is coming back to haunt the government, says New Zealand First.

KiwiRail has revealed that on six trips to China to finalise the purchase the Chinese were told no asbestos was to be used, but in 2014 forty locomotives had to be taken out of service when asbestos was discovered.

“The PM and Minister Steven Joyce have some explaining to do. Why did the KiwiRail tender for the locos get re-opened when they visited China,” says New Zealand First Leader and Northland MP Rt Hon Winston Peters.

“There were already four companies shortlisted, none from China. The PM’s intervention wreaked of a backroom deal done on that trip. He meddled in the market with no concern for KiwiRail.

“Despite this sweet deal the Chinese makers did not comply with KiwiRail’s instructions and delivered dangerous goods.

“This is the price of doing favours and rushing in to sign up for cheaper foreign products.

“We are being landed with substandard rubbish – right now we are paying the price for importing shoddy steel and poor plumbing products.

“Buying New Zealand made, if possible, should be the mantra. When local firms win contracts there is a substantial spin-off to other businesses and communities.

“Economically, we will be a better country feeding our own supply chain.”

Chinese train makers repeatedly told "no asbestos" | Radio New Zealand News

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