Transport Infrastructure

Hansard ID: HANSARD-1323879322-120227

Hansard session: Fifty-Seventh Parliament, First Session (57-1)

Transport Infrastructure

Mr TIM CRAKANTHORP (Newcastle) (16:59:16):

I move:

That this House calls on the Government to stop the overseas manufacturing of transport infrastructure such as trains, buses, ferries and trams, and instead support Australian jobs by manufacturing this infrastructure in New South Wales.

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I will begin this public interest debate by offering the member for Myall Lakes a seat on the Opposition benches. After his performance on last night backing‑in local manufacturing, this side of the House is clearly the place for him. Members on this side of the Chamber want to see local manufacturing. We do not want manufacturing projects sent offshore. We want to create thousands of jobs and we do not want imported duds on our transport network. The Opposition wants to do something about unemployment; that is also what the member for Myall Lakes wants. That is what the mid North Coast needs because youth unemployment in Taree is at almost 20 per cent. It is no wonder that the member is worried. I have an advertisement that must be a cause for concern because it is showing that 586 Lansdowne Road, Taree is for lease. It states:

This former rail manufacturing and maintenance site offers an opportunity to utilise infrastructure rarely available.

Let us check out the features:

The buildings contain a variety of cranes ranging from 5 to 32 tonne.

Rail siding into two sheds with direct access to the Main North Coast Rail Line linking Sydney, Newcastle & Brisbane

…

Significant handstand and road infrastructure on-site …

It sounds like it would make a fantastic rail manufacturing facility. Wait, it actually was. Tangaras, red rattlers and diesel locomotives were all produced on that site until 2013, when UGL shut up shop because the work just stopped flowing. Imagine what could be done in a facility like that. Rather than manufacturing in India, maybe some metro vehicles could be built there. Instead of buying from South Korea, we could try to build the new innercity fleet here. Maybe then the trains would fit the tracks.

The member for Blue Mountains is present online. Comrade, the trains that do not fit on the tracks, that do not fit in the tunnels and are too long for the platforms are a disgrace. The member for Blue Mountains has advocated strongly on that issue. When those contracts were awarded where was the member for Myall Lakes? He is in government, after all. Did he tell the Minister for offshoring—sorry, the Minister for employment in Spain, South Korea and Indonesia. Sorry, I mean the Minister for Transport and Roads what facilities were available in his electorate and what an opportunity it could be for his electorate? On Channel 9 he was very clear about the rail manufacturing site. The member said, "People from Taree and Manning Valley look at it and they say what if. 'What if we could get something happening there?' and I would love to see manufacturing come back."

Good on the member for Myall Lakes for taking the populist road on metro media. I will give the member for Myall Lakes a little tip: If you want to advocate for your community you actually need to speak to the person in charge before the contracts are awarded. There is no point in grandstanding in the media after the event. It is too late now, mate. Billions of dollars in contracts—poof—have already gone overseas. Why are the manufacturing contracts sent overseas? "It is all about value for money", this Government says. But that is just a tired old line from a tired old government. In fact, we were hearing it a decade ago from a transport Minister by the name of Gladys Berejiklian.

In March 2010 the Labor State Government awarded a $106 million contract to build 150 articulated buses, which created 250 jobs in the Hunter, at Tomago. A year later the Liberals came to power. By September the next year, 60 jobs were lost and the country's largest spray-painting bay was closed when the Liberal-Nationals Government changed how buses were procured and the work dried up. Why? According to the former Minister for clay target shooting—sorry, I mean the former Minister for Transport, Gladys Berejiklian—it was great value for money. We have heard that before, have we not? We have heard it a few times. It is a line that is trotted out to this day.

Time expired.

Let us just dive into this, because I have a list. We have buses built in Malaysia, trains built in China and South Korea, metro carriages built in India, light rail vehicles from France and Spain, and ferries built in China and Indonesia. The South Korean trains, apart from being massively late, have arrived too long and too wide, and their design poses a safety risk to passengers. The ferries, also delivered too late, arrived filled with asbestos. The drivers cannot see out of them at night, they stall when they are put in reverse and they do not fit under bridges. Then we come to the inner west light rail vehicles. What a farce! They have 30-centimetre cracks and will be completely offline for 18 months. What a debacle! This Government could have created 5,000 direct and indirect jobs if it had bothered to keep those contracts onshore. It could have delivered real value for money by putting locals in work so they could spend money at local businesses and give money to their local communities. When you purchase overseas, you purchase twice and the locals lose. When you purchase in New South Wales, everybody wins. []

Mrs LESLIE WILLIAMS (Port Macquarie) (17:06:37):

I welcome the motion that has been brought to the House today by the member for Newcastle, and I am so glad that he mentioned the word "ferries". The last time I spoke about ferries in this House I also spoke about the great manufacturing industry we have in Port Macquarie in Birdon marine. Of course, we have many fantastic manufacturing businesses, including Birdon—which I will talk about a little more in a minute—HF Hand and Bale Engineering. They employ dozens and dozens of local people, and the work that we, as the Government, are providing to them creates dozens and dozens of local jobs.

I ask the member for Newcastle, when he responds to this debate, how he is going to refer to the ferries that we manufacture in Port Macquarie, because the last time I spoke in this House about the ferries those opposite referred to them as "cheap junk". That is the way they referred to the great work done by the engineers, fabricators and designers in Port Macquarie. Those opposite referred to the ferries that came out of my electorate of Port Macquarie as "cheap junk". I want to know from the member for Newcastle: Is he going to refer to those same ferries that come out of the electorate of Port Macquarie as "cheap junk" or will he use some other term to refer to them? I look forward to hearing that from him.

Let me return to the wonderful work that is being done in my electorate of Port Macquarie by the great family-owned company Birdon, a company that the people of my electorate, my community, are so incredibly proud of. It was established in 1977 by the late Jim Bruce, a wonderful man who leaves an incredible legacy that is being carried on by his family under the leadership of Jamie Bruce, who operates the company. As I said, the company employs dozens and dozens of local people. It is an industry leader. It showcases expertise to the world from the banks of the Hastings River in Port Macquarie and the people of my electorate are proud that it can make that happen. The company is also an outstanding corporate citizen. Just last week I attended an event in my electorate to name our latest Marine Rescue vessel after the late Jim Bruce because of the support he gave to Marine Rescue—and the company continues to provide support to this day. It invests tens of thousands of dollars in Marine Rescue every year to support that great volunteer organisation.

Let us talk about the ferries and make it very clear that this Government is committed to creating local jobs and supporting local families right across New South Wales, including in the regions and the electorate of Port Macquarie. We all know that the needs, the wants and the expectations of our customers are always evolving. There is now greater demand for technology-enabled personalisation, flexibility and ease of use. We are committed to ensuring that we harness rapid advances in technology and innovation to design, build and maintain a world-class transport system. A team of 16 people were involved in construction of the MiniCat ferry in my electorate of Port Macquarie. The River Class and the Emerald Second Generation Class fleet programs have employed 54 workers in New South Wales—36 have been supporting the entire program and handover of the River Class fleet to Transdev Sydney Ferries, and up to 18 additional workers have been engaged to carry out completion work on the three new Emerald Class ferries right there in Port Macquarie. Refurbishment of the First Fleet ferries employed 22 people, with a further six specialist consultants to support the program.

Outstanding work is being done right across our communities, all supported by the New South Wales Government. I also mention that, under the fantastic leadership of shipbuilders Birdon, two new multipurpose firefighting vessels will be built in Port Macquarie after the Port Authority of New South Wales signed a $10 million contract. That money is going straight into my electorate, supporting local jobs and local families. It is absolutely fantastic to have Birdon on board to build and deliver purpose-built firefighting vessels right here in New South Wales—not overseas, as those on the other side purport. As I said, it is a great investment in local jobs in Port Macquarie, with 40 Birdon staff and an additional 20 subcontractors to work on the vessels locally. Again I ask the member for Newcastle how he is going to refer, in his reply, to the ferries in Port Macquarie because last time Opposition members referred to them as "cheap junk". Will he stand by that comment?

TEMPORARY SPEAKER (Mr Gurmesh Singh):

I call the member for Newcastle to order. The member will have an opportunity to reply to the debate.

Mr ANOULACK CHANTHIVONG (Macquarie Fields) (17:12:07):

I support this public interest debate motion moved by my colleague the member for Newcastle—a member who understands the importance of local manufacturing and its positive economic and social benefits to the local community, and indeed to the New South Wales economy. Of course, Newcastle has a proud manufacturing tradition and history. Along with Wollongong, it is one of our great steel cities, a manufacturing hub and a place for minerals exports. The member for Newcastle knows first-hand how important it is for us to rebuild our economy through our local manufacturing industry.

In addition to jobs, economic opportunities and industry development, this motion is also about our confidence in the different pillars of our local economy. In moving this motion, New South Wales Labor has confidence in our local manufacturers to build high-quality transport infrastructure projects. We have confidence in the skills of our local workforce. We have confidence in our people and their hardworking ethic to help rebuild our economy. Where we are competitive, we should be using the powers of State government contracts and procurement to benefit our local manufacturing, invest in the skills of our people and support ancillary industries to employ more people.

For too long, this Liberal Government has followed a kindergarten economic approach in managing multibillion-dollar contracts based on savings that have not eventuated. For too long, this Liberal Government has had little confidence in the competitiveness of our industries and business, and the skills of our people. The rationale was that offshore would produce significant savings—up to 25 per cent of the contract, it said. It was a single variable equation when managing major contracts. Let us look at the facts, let us look at the evidence and let us shine some accountability on the rhetoric and economic rationale. Example number one is the Intercity Fleet contract valued at $2.8 billion. A 25 per cent saving is about $700 million—enough to fund thousands of nurses and teachers. Did we achieve this saving? Not even close. There was a 40 per cent budget blowout of $1.1 billion. So a projected 25 per cent saving turned into a 40 per cent budget blowout.

Jerry McGuire

Exhibit number two is the Sydney Metro project, which had a budget of $1.15 billion and a potential saving of about $250 million. What happened and how much did we save? Twenty-five per cent? Ten per cent? Five per cent? One per cent? We saved zilch. In fact, there was a 100 per cent budget blowout. I am not seeing a lot of financial savings. The suburban fleet was an original project that was to cost $2.6 billion with potential savings of about $650 million. The end result was a 44 per cent budget blowout of $1.16 billion. Then of course there is the Sydney light rail. I say no more. If the rationale is to save public money, then where is this saving? As they say in the movie , "Show me the money."

For these four rail projects alone, the cost blowout was approximately $4.7 billion. That does not include the disruption cost to the community and the adverse economic flow‑on effects to the New South Wales economy. We were told there would be financial savings of up to 25 per cent, but all we have seen is financial ruin and ongoing costs to the New South Wales taxpayer. The NSW Labor Party is not about protectionism or unsustainable financial parochialism; it is about the facts. This Government promised New South Wales taxpayers financial savings of hundreds of millions of dollars and cumulatively billions of dollars in its management of local infrastructure asset contracts. That has not occurred. Its mismanagement of transport projects have ended up costing taxpayers millions—indeed billions—of dollars. If things are not working, surely the solution is to change your mind. As a humble working-class economist, I follow the words of John Maynard Keynes, who wrote:

When the facts change, I change my mind. What do you do, sir?

It is time that we change our minds about how we use procurement and government contracts for major transport assets, how we value and assess the entire economic benefits and how we can use the powers of the State to repair our economy as it bounces back from the pandemic. In the spirit of fairness and facts, let me say what the Liberals are actually good at: cooking the books, fudging the figures, blowing the project budget, pork‑barrelling over probity in funding projects, mismanaging public money, inflating their imaginary economic competence, buying trains that do not fit, buying ferries that do not work at night or go under bridges, using rail lines that crack, and an it has an inner west tram set that does not even work. The Government's Opal card is a "tap and do not go and do not work". The facts and the evidence show that the Liberal Government is incompetent when it manages transport projects on behalf of the New South Wales taxpayer.

Ms ELENI PETINOS (Miranda) (17:17:09):

No-one on the Government side of the Chamber will be lectured by Opposition members about how to run a budget, how to mismanage finances and how to completely not deliver on promises. That is all they did for 16 years. This State was completely neglected for 16 years under Labor, and the people of New South Wales know that, which is why this Government has been returned to office so many times. We have a fantastic record to stand by when it comes to transport and infrastructure projects. This Government is committed to placing the customer at the heart of planning and delivering transport services and infrastructure to each and every person in this State. It has always done that and will continue to do so.

Our customers rely on the transport system to access vital services and places, whether that be in health, education, employment, a learning centre or a leisure precinct. The people of New South Wales value a transport network that is integrated, safe, reliable, accessible and affordable. That has continued to be delivered by this Government over the past 10 years. Transport for NSW complies with the New South Wales Government's procurement and policy guidelines to ensure that all tenders are competitive and transparent to deliver the best outcomes for customers and value for the New South Wales taxpayer.

The DEPUTY SPEAKER:

Order! The member for Shellharbour will come to order.

Ms ELENI PETINOS:

Where possible, Transport for NSW assets are built, designed, managed and maintained in Australia. An example of how the delivery of the transport network in New South Wales is supporting jobs is the Waratah Series 2. I correct the record for members opposite. There was no local tenderer proposed to build the Waratah trains in Australia; however, the fleet is maintained in Sydney. The maintenance of 41 Waratah Series 2 trains has resulted in 60 new jobs for the life of the 25‑year maintenance contract.

When it comes to the new intercity fleet, no local manufacturer bid to build the trains in Australia despite Australian manufacturers being provided the same opportunities to bid for the new intercity fleet. Parts of the new fleet will be procured from local and overseas suppliers. Construction of the new maintenance facility at Kangy Angy and enabling work across the intercity network has created around 1,600 local jobs. There will be around 90 permanent jobs created when the Kangy Angy facility is fully operational. John Holland, which is the contractor responsible for designing and building the maintenance facility, hired local Central Coast residents, including members of the local Aboriginal community, for this project. John Holland also achieved the employment target of one apprentice for every four tradespeople.

The DEPUTY SPEAKER:

Order! I remind the member for Summer Hill that she is already on three calls.

Ms ELENI PETINOS:

The New South Wales Government is a strong supporter of the local steel industry and is leading the nation in the delivery of roads, rail and other infrastructure, making us the largest purchaser of steel in the nation. For example, the majority of steel procured for the WestConnex project was Australian‑made steel sourced from Australian mills. On NorthConnex, 99 per cent of steel used to build it was Australian steel, with a majority sourced from InfraBuild. On the Sydney Metro Northwest, 100 per cent of around 7,000 tonnes of steel used to reinforce the tunnels was sourced in Australia. On Central Station Metro, 92 per cent of the steel, which is around 7,300 tonnes, that is being used to build the new underground metro platforms and Central Walk is being sourced in Australia.

I do not need to tell the Deputy Speaker about the things going on in her electorate of Port Macquarie. The build of the River Class and Emerald Class ferries has seen 54 people locally employed, with 18 of them directly and locally employed by Birdon, eight people indirectly employed by Birdon, 18 people during the final fit‑out employed in Port Macquarie and 10 people employed during the final acceptance phase. Clearly this Government delivers jobs and infrastructure for the people of New South Wales. We know that by working collaboratively, we will all benefit by leveraging expertise and sharing our success with the people of New South Wales.

Mr RON HOENIG (Heffron) (17:22:09):

I am an old public defender and I have taken a few difficult briefs in my time. I have got to say, the member for Miranda made a good fist of it. One would not want her opening the bowling in the first test with a long hop. At the end of the day, she was given a brief. I thought she did as well as she possibly could, bearing in mind the quality of the Government that she is purporting to represent. I nearly choked today in question time when the Minister for Transport and Roads was asked about the procurement of trains overseas and he bleated that he has been in the role for only four weeks. Someone ought to tell him about collective ministerial responsibility. Members opposite have been in Government for 11 long years and I would have at least thought that when they really bugger something up, they might say, "They are challenges. We are sorry. We have had problems in procurement."

I thought I should check with the manufacturers to see what they have to say. The CEO of Weld Australia, Jeff Crittenden, reminds everyone that when former Premier Gladys Berejiklian was asked about train manufacturing in Australia she said, "not good at building trains". Former Minister for Transport and Roads Andrew Constance said, "Train manufacturing does not exist in Australia." That is the response by the people that call privatisation by the new term "asset recycling". I will tell members what the industry says. In Manufacturers' Monthly Crittenden said:

Reforming procurement practices in Australia would have deep benefits for local and national comments.

State government rail procurement practices that support local welders and fabricators would create thousands of jobs, supporting local families and local economies in a post COVID-19 world. It would facilitate technology transfer and drive some of the world's most innovative research and development.

That is from the manufacturers of trains, Weld Australia, which is the representative of them all, reminding us what the former Premier said about procurement. Crittenden continued:

… NSW's trains are manufactured overseas with the $900 million Waratah 2 trains being fabricated in China, the $2.3 billion Intercity fleet of trains is being fabricated and built in South Korea, and the light rail trains are being built in Spain.

He indicated that those projects could have been awarded to local fabricators, which would have created thousands of jobs in New South Wales. He highlighted one issue that I think is relevant. He said:

As COVID-19 has highlighted how sensitive we are to global supply chains and as unemployment is rising, particularly in regional areas, now more than ever we need a plan for manufacturing which includes rail.

I do not know what has happened to the National Party in this House. It used to fight for regional New South Wales and provide local jobs. If the train procurement by this highly intelligent, well-organised Government had been successful, we would not have a $2.3 billion contract for 512 double-decker train carriages awarded to a UGL-led consortium. The trains that were built in South Korea were too wide to go through the tunnels because standard trains are 2.9 metres wide but the replacements were 3.1 metres wide. Transport for NSW, which manages the State's rail program, had to widen the tunnels so the trains could go through them. What sort of procurement process exists in this State?

We have seen significant cracks in the inner west light rail carriages that were manufactured in Spain. They are off the rails. You could put your head through the cracks, I have been told. That is not all. The same manufacturers from Spain that built those dodgy-looking trams will now be used for Parramatta. Of course, there is also the embarrassment of the ferries that do not fit underneath the bridges and that cannot be used at night‑time. At some point will someone on the other side of the House say, "We stuffed it up, we're sorry and we're going to do better"?

Mr Mark Coure:

Five minutes of Mark Coure—I'm sorry.

Ms Anna Watson:

Oh no.

The DEPUTY SPEAKER:

I have not given the member for Oatley the call. I am waiting for members to come to order. I remind members, particularly Opposition members, that a number of them are on three calls to order. I do not want to have to remove them from the Chamber.

Mr MARK COURE (Oatley) (17:27:54):

Which State in Australia is leading the recovery? New South Wales. Which State is on track to recover all the jobs lost during the pandemic by September next year? New South Wales. Which State is creating an additional 25,000 jobs? New South Wales. Which State has committed more than $12.8 billion in its package to support residents during the outbreak? New South Wales. The Government aspires to recover all jobs lost by the September quarter 2022 and to create an additional 25,000 jobs by December next year. The Government's stimulus and support measures are aimed at boosting the economy, and restoring and creating jobs.

Which State is spending $500 million to restore consumer and business confidence? New South Wales. Which State is spending $250 million to support jobs and skills, including help for jobseekers to retain their jobs or upskill? New South Wales. Which State is spending $212.2 million to boost vital sectors, including funding for the arts sector, Restart packages and, of course, support to bring our cities back to life across New South Wales? New South Wales and this Government is. Which State is spending $200 million to boost the regions? It is this State and this Government. We are supporting events and facilities, local infrastructure and, of course, housing.

Madam Deputy Speaker, as the member for Port Macquarie, you would be well aware that we are spending $25 million to support the sport and recreation sector, particularly in regional New South Wales and the local government areas heavily impacted by COVID restrictions. The $5 billion WestInvest fund will support a strategy to rejuvenate western Sydney communities and boost jobs. But wait, there's more. The New South Wales Government has provided $3.6 billion in Commonwealth and State cash flow support for businesses and not‑for‑profits through the JobSaver program. More than 212,000 applications have been received from businesses for the JobSaver program, and over 206,000 have been paid. There was also $250 million for the Jobs Plus program, which was announced in November 2020, to support Australian and international companies that want to enter or expand their footprint in New South Wales.

Labor frontbench members should take note of this because New South Wales is leading the recovery effort across Australia. It gets better. In March the then Premier announced the creation of Investment NSW, a new body with a focus on jobs, skills and investment through consolidated funding opportunities, targeting business investment and attracting global companies to New South Wales. Investment NSW has been established to drive all trade and investment activities as a one-stop shop to maximise economic benefits and jobs growth across New South Wales. The New South Wales September unemployment rate stands at 4.6 per cent, the best of every single State except Western Australia. As of September 2021, New South Wales has almost four million people employed. Full-time and part-time employment have increased as well. When it comes to the economy, only a Liberal-Nationals Government will deliver the best for New South Wales.

Mr TIM CRAKANTHORP (Newcastle) (17:32:53):

In reply: It beggars belief that for two years the member for Oatley was the Parliamentary Secretary for Transport and Infrastructure. I think he picked up the wrong speech on his way into the Chamber because he seemed to completely miss the brief—he completely missed the topic. I thought being a Parliamentary Secretary for two years, he might have been able to speak off the cuff. But no, he picked up his speech on the way in—very odd—and talked about many things. I thank the member for Port Macquarie for her contribution. She talked a lot about the Emerald Class ships that were fitted out in Port Macquarie. A lot of steel was involved in the production of those ships, which came from China. Imagine how many more jobs would have been created if they had been constructed completely in Port Macquarie—happy days! She and the member for Myall Lakes could go on a unity ticket and talk up manufacturing in New South Wales. That would be fantastic. I was referring to the River Class ferries. They are full of asbestos and a lot of people are trying to fix the ones that cannot reverse or be driven at night. I also thank the member for Macquarie Fields, who made a great contribution on the blowouts and mismanagements of this Government. He said this Government is "cooking the books", and I could not agree more with that. The member for Miranda was trying to defend the indefensible when she said that customers are the priority. The member for Summer Hill asked, "How is that going for the people in the inner west? How are customers feeling?"

Ms Jo Haylen:

You can't get on a train.

Mr TIM CRAKANTHORP:

You can't get on a train. Customers are number one. Absolutely.

The DEPUTY SPEAKER:

The member for Macquarie Fields and the member for Heffron will come to order.

Mr TIM CRAKANTHORP:

The Government says, "Why didn't New South Wales companies tender?" Train manufacturing is so run-down that there is no-one around to tender anymore. That is why the Senate inquiry into train manufacturing said that we have to plan train manufacturing and coordinate it throughout the country. The member for Heffron made a good contribution, particularly on the member for Miranda making a total fist of what she could. I could not support that more.

We have a great legacy of manufacturing in New South Wales. Before she exited, the former Premier indicated that we were going to turn over a new leaf and try to do a bit of that. The proof is in the pudding; we have not seen much of it. The poor old member for Myall Lakes was lamenting that just last night on Channel 9, saying how sad it is for his local people. It speaks for itself when a government representative says how sad it is and how it would have benefited his local community. The Government is turning on itself and eating its own people alive.

The DEPUTY SPEAKER:

The question is that the motion be agreed to.

The House divided.

Ayes13

Noes17

Majority4

Motion negatived.