By Rebecca Wright
A new report is calling for electric trains for Auckland’s urban rail development to be built in New Zealand.
The economic consultancy group Berl says it would create jobs and bolster the economy.
But KiwiRail says overseas production is still the best option, and the Government agrees.
Kiwi trains currently under construction in Korea are destined for Wellington’s railway system, but the rail union says Kiwis should be making Kiwi trains, and they're urging KiwiRail to enter a tender for 51 new trains needed for Auckland.
“This is a way of actually developing our domestic workforce so we actually keep the skilled people here in New Zealand at the moment,” says Wayne Butson, Rail and Maritime Transport Union general secretary.
Rail unions commissioned economic consultants Berl to research the potential economic benefits of building rolling stock in New Zealand. It says the contract could provide up to 1300 new jobs and generate $250 million in GDP.
“It's good for our skills base, it's good for our engineering companies, it grows capability, so it's a good news story all around,” says Peter Conway, president of the Council of Trade Unions.
KiwiRail itself though isn't convinced.
“We really don't think we'll be able to compete with the overseas bidders,” says CEO Jim Quinn. “More than that we simply think the delivery time for the order is too tight.”
KiwiRail would need an extra $8.5 million of Government investment to bring its existing plants in Dunedin and the Hutt Valley up to speed.
Transport Minister Steven Joyce says making trains doesn't look like a sustainable industry.
“I think its going to be a struggle for us to be successful in the electric train manufacturing industry when there's all these big companies like Bombardia and Rotain in Korea, who bought of course the Wellington trains under Labour, and a number of other companies have been doing this for years and years.”
Criticism that the Government isn't doing enough to foster jobs in the rail industry is falling on deaf ears, with Mr Joyce and the head of KiwiRail saying the opportunities here are for maintenance and refitting existing rolling stock.
3 News