By CAM LUCADOU-WELLS
IN THE throes of the local auto industry’s demise, Dandenong’s manufacturers are seeking government guarantees that Victoria’s next train and tram fleets won’t be built overseas.
The State Government did not respond to rumours last week that 25 new trains for the Dandenong rail corridor project could be largely built overseas under minimum 30 per cent local content levels.
Bombardier Transportation, which employs 430 staff at its Dandenong factory, is in the running for the train contract.
It also wants the State Government to exercise an option for a further 100 Dandenong-built trams.The project – so far comprising 50 Bombardier-built trams – has a supply-chain of 350 Australian and New Zealand businesses.
Andrew Spink, director of Bombardier Transportation, wouldn’t comment on the company’s quest to build the Dandenong rail corridor fleet.
However he said the company was seeking extension of its tram-building contract from the government before November’s state election.
“The trams have proven to have fantastic quality. Our Vlocity (diesel train) vehicles are one of the best for reliability in the world.
“It’s not as though we’re desperate, but we’re looking for long-term sustainability.
“We need to know for next year if we can continue production beyond those 50 trams.”
Bombardier is also currently building 43 Vlocity train carriages for V’Line and 66 electric train cars for Adelaide lines.
Mr Spink said the factory was “Dandenong’s biggest employer”, creating specialised welding schools for the tram project.
“We’ll never be a direct replacement for the car industry.
“But if we have a long-term rail manufacturer, it will go a long way to making a dent into the (departing) auto industry.”
Jill Walsh, of Dandenong-based Actco Pickering Metal Industries, said “time had gone past quoting local content percentages”.
“Hopefully the government mandates for the train shells to be built here. That is the key to the whole train being built locally and for the value-adding down the supply chain.
“We make great trains in Dandenong – among the most reliable in the world. We just need the opportunity to do it.”
Australian Industry Group state director Tim Piper said a 30 per cent local content level could deny local suppliers “a run at it”.
He said manufacturers bringing in overseas parts and assembling them locally could meet 30 per cent local content.
“By buying in Australia, governments make sure skills are retained here, jobs are kept here and social infrastructure is given a positive boost.
“The income tax, payroll tax and WorkCover payments stay here. They don’t have to pay as much social welfare.”
Opposition manufacturing spokesman Adem Somyurek said a Labor Government would lift local content for rail rolling stock above 30 per cent.
“We will be using government procurement to create jobs.
“In principle, we believe in local content and $15 billion of State Government purchasing is a powerful way of driving the local economy.”
He said the rail stock-making industry was important because it had crossover in skills and technology with the departing auto industry
A spokeswoman for Manufacturing Minister David Hodgett did not respond before deadline.
