14 December 2010
Media Statement

Kiwi workers cut out of rail wagon fleet upgrade

KiwiRail’s decision to choose China CNR Corporation (CNR) as its preferred tenderer to supply 300 wagons to bolster its ageing fleet is a huge and possibly terminal slap in the face for its own staff, say Labour MPs Darren Hughes and Clare Curran.

Transport spokesperson Darren Hughes said that KiwiRail had “essentially taken a very narrow view in choosing CNR.

“There is no doubt CNR is a relatively cheap and efficient supplier, but that doesn’t take into account the wider economic benefits and spin-offs for New Zealand of using KiwiRail’s own staff at the Hillside Workshops in Dunedin to do the work.”

Dunedin South MP Clare Curran said she was now becoming increasingly concerned about the future for staff at Hillside.

“In making KiwiRail’s announcement today, Chief Executive Jim Quinn opened the possibility of Hillside being able to import and assemble wagons for KiwiRail’s future requirements.

“That would be encouraging if Mr Quinn used more positive language,” Clare Curran said.

“Instead, he hedges his bets --- and the bets on the future of his own staff --- by adding that Hillside will have to close the gap with China significantly if that is going to be an option that KiwiRail pursues in the future.

“It’s not surprising that KiwiRail workers in Dunedin are now referring to KiwiRail as ChiwiRail,” Clare Curran said.

“They are not being derogatory about CNR. They are, however, expressing their real concern that KiwiRail is so wedded to China meeting the needs of our future rail fleet that New Zealand workers won’t get a look in.”

ENDS

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