Industry and Trade Minister Theo Theophanous and Bombardier Transport managing director Dan Osborne with one of the 40 VLocity trains Bombardier has built for the State Government thanks to its Victorian Industry Participation Policy.
ALL eyes were on Dandenong train-maker Bombardier Transportation last week as the State Government spruiked a policy that promotes Victorian businesses as preferred tenders for its projects and events.
Industry and Trade Minister Theo Theophanous last week visited the Dandenong South-based manufacturer to talk about the Victorian Industry Participation Policy (VIPP).
Mr Theophanous said Bombardier was a shining example of how the VIPP provides greater opportunities for Victorian small and medium enterprise businesses to be involved in government funded major projects and major events.
“Bombardier Transportation Australia is a leader in rail equipment manufacture and servicing and has just completed its 40th two-carriage VLocity fast train for regional Victoria,” Mr Theophanous said.
“This is part of the Victorian Government’s Regional Fast Rail project worth $535 million. We have recently announced that Bombardier has been awarded a $65 million contact extension to supply a further 14 intermediate VLocity cars to provide additional capacity.”
In a boost to Victorian businesses, a record high of 224 public projects were covered by the VIPP last financial year according to a report tabled in Parliament recently.
“Since 2001, the VIPP has been applied to 765 projects worth a total of almost $15 billion that have generated more than 18,500 new jobs,” Mr Theophanous said.
“Nearly $300 million in import replacement has been recorded from VIPP projects to date, including nearly $48 million in 2006-07.
“For contractors, purchasers and project managers, the VIPP helps ensure they are receiving the best value for money and enjoying the benefits of purchasing locally such as better after-sales service and no import or other duties.
“Bombardier exceeded their VIPP commitment of 55 per cent local content to more than 70 per cent for the manufacturing phase of the project.“
Dandenong MP John Pandazopoulos said that this translated into additional contracts worth about $40 million awarded to local companies that might otherwise have been placed with overseas companies.
