THE Baird government’s decision to have 500 new train carriages built in South Korea “places a massive question mark” on the Hunter’s future as a rail manufacturing hub, Labor opposition leader Luke Foley has warned.
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Transport Minister Andrew Constance announced on Thursday that the had signed a $2.3 billion contract to build and maintain the new double deck innercity fleet that will serve Newcastle and other regions including the Cental Coast.
The winning bidder, RailConnect, is a joint venture between the Hyundai Rotem Company, Mitsubishi Electric Australia and local firm UGL Rail.
The trains will be designed, manufactured and tested in Korea, with UGL set to rake in $570 million from the deal to conduct maintenance work on the new trains at its Kangy Angy plant on the Central Coast.
Parliamentary Secretary for the Hunter Scot MacDonald said it was a “landmark day for Central Coast and Newcastle commuters”
“We know our Newcastle and Central Coast customers spend large parts of their day travelling to and from the city on our services and as a result, expect extra space and comfort on their journey,” he said.
But despite UGL’s involved in the bid, Labor have lashed the decision, saying the contract was a “devastating blow to the domestic manufacturing industry”.
“Up to 1,200 jobs that should have been created in NSW will never eventuate thanks to Mr Baird,” Mr Foley said.
“This is a missed opportunity to deliver a shot in the arm to the manufacturing hubs across the state.”
In 2015 the Newcastle Herald reported warnings from the Australian Manufacturing Workers Union that Hunter workers could lose out even if the fleet was awarded to a local contractor, because of the state government's decision not to set a local skills component to the contract meant.
On Thursday the union’s secretary, Tim Ayres, called the decision “a betrayal”.
“This is money that should have been invested in Australian workers and Australian communities,” he said.
“Mike Baird does not understand what these jobs mean to regional communities. Decision after decision shows that he is out of touch with the lives of the people of this state.
“The Hunter Valley has the highest youth unemployment rate in the state, but instead of investing in apprenticeships for young people he is sending taxpayer money overseas.”
The Hunter’s other local rail manufacturer – Downer EDI – wrote down its forecast profits by $7 million after its consortium bid missed out on the contract.
Newcastle MP Tim Crakanthorp said the Hunter was being ignored by the government.
“We have been begging for contracts for ships and military aquatic machines through Forgacs; Forgacs has closed down its facility,” he said.
“We have UGL here who are desperate to get some good meaty work.
“They [the government] are just turning their backs on manufacturing jobs in Newcastle and Hunter.
“We are losing the skills. Where are the apprentices, where will the skill uptake come from.”
