The ASI has applauded the Victorian Public Transport Minister, Martin Pakula’s latest announcement affirming a minimum of 25 percent local content for developing the State’s new fleet of low-floor trams, currently being tendered out for manufacture.
“We welcome the clear signal from Mr Pakula stipulating a sizeable requirement for the manufacturing component to be sourced locally,” said ASI Chief Executive, Don McDonald. “It is fitting that such an iconic element of Melbourne’s streetscape maintains a substantial Australian component and this value was obviously not lost on the Victorian Government.”
Mr McDonald said that using local industry often pays dividends in the form of lower freight costs, more responsive supply, less downtime due to rework of poor work, more reliable operation and less maintenance required over the full life of a project. “Purchasing locally provides other significant savings for a project’s whole-of-life costing, like lower inventory costs, reduced lead times and improved after sales support. When the proximity of the domestic workforce, the high quality of workmanship available and investment in high technology are considered, the Australian steel industry is in many cases competitive with foreign competition. We would encourage the Federal and other State Governments to strongly consider the 25 percent local content (for manufacturing) clause in their policies, especially in the many upcoming major resource projects. It is reasonable to expect a return on Government’s support of major projects through investment in infrastructure by generating local jobs, enhancing workplace skills and future prospects for Australians. We wish the two shortlisted companies, Alstom and Bombardier the best of luck in bidding for the new light rail vehicle work.”
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