5. Hon DAVID PARKER (Labour) Link to this
to the Minister of Finance
Does he believe that in the current economic environment kiwi companies should be considered favourably with regards to big government contracts?
Hon BILL ENGLISH (Minister of Finance) Link to this
I believe the current economic environment makes it even more important that Government spending achieves the best value for money possible on behalf of taxpayers. In that respect we are simply following the guidelines that the previous Labour Government laid down in 2007. I quote: “New Zealand’s own government procurement market is open and competitive, and the policy does not call for discrimination against foreign suppliers.”
Have members of his Government vowed that the multimillion-dollar contracts to build thousands of temporary houses and utility blocks in Christchurch will go to Kiwi companies, and does he agree?
No, I have not heard such vows being made. The Government has been exploring the market for temporary housing, and some results of that will be coming back in pretty soon, I think.
Does he believe that preference should be given to New Zealand companies in the building of thousands of temporary homes in Christchurch?
I believe preference should be given to the people of Christchurch being able to get access as quickly as is necessary to a reasonable quality of temporary housing, and that is what the Government processes aim to do.
Will the Government release a cost-benefit analysis as to the benefits of those houses being built by New Zealand companies rather than overseas contractors?
That might be an interesting idea; I am not sure what it would show. We have been focusing more on the needs of the people of Christchurch, some of whom need temporary accommodation, and we will continue to do so.
Clare CurranGiven the significant size of the flat-deck wagon contract with KiwiRail and the implications for New Zealand’s rail engineering workforce, will he commission a report into the real cost difference, if any, between imported flat-deck wagons and New Zealand - built ones?
As has been discussed in the House, decisions about that issue were made on a commercial basis by the KiwiRail board. The Government needs to give KiwiRail the best possible opportunity to be a successful and viable organisation. As I think everyone knows, that is quite a challenge. It needs every advantage we can give it.
Does he deny that a senior KiwiRail representative said at a meeting of KiwiRail’s mechanical council committee on 23 March that a political decision had been made to buy the 3,700 flat-deck wagons from outside New Zealand, rather than have them built in New Zealand?