Local jobs strategy must be more than a photo op The NSW Govermnent’s tour of a Western Sydney bus manufacturer does not make up for its complete neglect of local manufacturing jobs for the past decade. The Premier and Transport Minister today toured Custom Denning to announce a contract to assemble 79 new electric buses – less than one per cent of the State’s bus fleet. However, the announcement pales in comparison to the billions of dollars in jobs and investment that have been sent offshore over the past decade. A recent Unions NSW and The McKell Institute report Build it Here found the Government forewent 4,192 direct and indirect jobs and more than $484 million in payroll and income tax collections through its decision to offshore NSW Government’s transport contracts. These include:
- The new intercity rail fleet made in South Korea,
- The light rail made in France and Spain,
- New Sydney Ferries made in China and Indonesia; and,
- 38 B-Line buses built in Germany and assembled in Malaysia.
Unions NSW Secretary Mark Morey said photo ops were a poor substitute for a decade of of sending jobs offshore. “The Premier thinks one photo opportunity will make up for a decade of neglecting local manufacturing jobs and industry. It won’t. “Today Mr Perrottet has announced he intends to build assemble 79 buses here in Sydney, one per cent of the fleet. If he was fair dinkum he would commit to build all of the State’s 8000 buses in NSW as and when the current fleet need replacing. “That would give workers and businesses confidence to plan and invest. “When governments spend money in their local economy it has a powerful multiplier effect. Those workers spend in their local communities and pay tax to state and federal governments. “Local manufacturers better understand local conditions and are more accountable. They are less likely to construct trams that don’t fit on the tracks or ferries that can’t fit under a bridge. “It’s nice to see Mr Perrottet cotton on to the concerns we have been raising, but so far we are seeing more spin than substance. McKell Institute executive director Michael Buckland said full accounting for the economic benefits of local production was critical. “Governments must consider the wider economic benefits of local construction when they sign significant procurement contracts,” Mr Buckland said. “A fuller perspective of the jobs, economic activity and tax revenue generated through local purchasing would see many more projects built in Australia. The Build It Here report recommended :
- The cost increases observed in overseas procurements should be investigated to determine whether inefficiencies resulting from offshore contract sourcing are consistent, and how they may be mitigated via local production.
- The NSW Government should establish an international sourcing comparator based on the public sector comparator to promote transparency in significant procurement decisions. The international sourcing comparator should be published alongside contract award notices.
- Government agencies should publish wider economic benefits as part of a holistic cost-benefit analysis when making decisions about major procurement contracts that exceed $1 billion.
Mark Morey 0425 231 812
