5. Hon DAVID PARKER (Labour) Link to this
to the Prime Minister
Does he stand by his statement “each of us can do something that could save someone’s job, create a new job for another person or help someone else find a new job as soon as possible”?
Hon STEVEN JOYCEDoes the Prime Minister accept that his Minister of Transport, Minister Joyce, was plainly wrong in saying that blocking Hillside and Hutt railway workshops from even tendering for the manufacture of rolling stock and instead purchasing rolling stock from overseas would not put jobs at risk?
No. The Prime Minister has spoken with the Minister of Transport, and the Minister has informed him that KiwiRail has never been stopped from bidding for any of the projects that the member mentions.
Does the Prime Minister think that successful Asian, USA, and Australian economies are wrong to use Government procurement to achieve outcomes that support businesses in their countries; if not, why did his Government not do it in respect of rolling stock?
I point out that the member was part of a previous Government that also saw fit to have an international tender for rolling stock and under its watch the Korean trains were built in Korea. It is important, when New Zealand is a trading nation, that we trade with other countries and we allow them to bid for our projects in the same way that we have the opportunity to export to their countries.
Clare CurranIs he aware of any analysis done by the Government of the lost income, GST, and extra cost of benefit caused by his Government’s decision to lay off New Zealand manufacturers of rolling stock in favour of jobs in other countries; if so, can he make that analysis available?
I reject the member’s assertion. It is for KiwiRail to determine the best mix of resources it needs to try to turn round its operations. It is an organisation of some 4,000 staff, it needs to be turned round successfully, and it is very challenging to do so. We need it to be able to make sensible business decisions, and we need to stop asking KiwiRail to do something that we would ask of no other New Zealand company.
I raise a point of order, Mr Speaker. I asked whether he is aware of any analysis done by the Government.
Mr SPEAKERI think the Minister’s answer indicated it was not the Government’s role to do that analysis, because it was not the Government making the decision. It was my understanding of the Minister’s answer that he was arguing that KiwiRail has to be left to make its own decisions. I cannot judge that answer, and I cannot insist on the Minister answering further, because it appears the Government was not involved.
Why was no analysis done by the Government of the relative cost and benefits of supporting rail engineering jobs compared with the $35 million in subsidies in this year’s Budget for new irrigation schemes?
In answer to the first part of the question, again it is important to point out that KiwiRail is a company that has been charged with turning round its performance and actually performing well for all the 4,000-odd staff who work for that organisation. We do not expect any other company or organisation in the country to maintain the exact same workforce and the exact same roles for ever and a day. It would be great if we could do that, but we do not do that. They have to have the ability to adapt and make changes, and that is no different from any other organisation in this country.
Hon Trevor Mallard Link to this
Why is it appropriate to use regulatory methods to favour Telecom with regard to ultra-fast broadband and to favour Skycity with regard to tourism jobs but not to add up how much tax the Government is losing and the benefits it will be paying by giving Chinese workers Kiwi jobs?