Building trains could help NZ economy

A new report out earlier this week by economics consultancy BERL shows the economic advantages of building trains in New Zealand. KiwiRail, the state owned rail company, has $500 million to purchase 38 three-car electric multiple units and 13 locomotives for the Auckland rail network. BERL has estimated that building these trains in New Zealand would add between 770 to 1270 additional jobs, $232 to $250 million to GDP and an increase in crown revenue by a net $65 million to $70 million. The rail and maritime union (RMTU) is supportive of this idea, “The expertise and equipment needed to build these new trains exists in New Zealand rail workshops.  NZ rail workers are skilled, experienced, and want to do this work,” Rail and Maritime Transport Union (RMTU) General Secretary Wayne Butson said.

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The union launched a petition and is organising event in Wellington and public meetings in Lower Hutt and South Dunedin, cities where there are rail workshops. The Council of Trade Unions (CTU) has got behind the campaign. Peter Conway, CTU Secretary, said: “We have the people, we have the expertise, we have the engineering capability and we have local suppliers to build the Electric Multiple Units for Auckland right here in New Zealand.”

The Dunedin City Council is also keen to have trains built in their city, Dunedin City Councillor and Chair of the Dunedin City Council Economic Development Unit John Bezett stated

This BERL report confirms what we have long believed in Dunedin - that in many specialist areas the city has the expertise and resources to compete with anybody, anywhere. This is clearly demonstrated with the Hillside operation which is renowned for its innovation, commercial competitiveness and quality workmanship. It is imperative that New Zealand retains the long term viability of such a business.