❓ Ms. Saffioti questions the Treasurer's estimates regarding the number of railcars needed and the cost of a local railcar construction facility. The Treasurer defends his statements by clarifying the railcar orders and associated infrastructure costs, while also criticising the opposition's proposal.
AnsweredQoN 675Legislative Assembly
QuestionView source ↗
RAILCAR CONSTRUCTION — LOCAL CONTENT
675. Ms R. SAFFIOTI to the Treasurer:
I refer to the Treasurer's
comments in this house yesterday regarding the building of railcars in Western Australia,
in particular his comments that over the next 10 years we will need to build,
at most, 60 railcars; and also that that would require a facility that would
cost billions of dollars—or hundreds of millions of dollars at least;
and that that would be satisfied within two months.
(1) Does the
Treasurer still believe that Western Australia will need only 60 new railcars
over the next 10 years?
(2) Does the
Treasurer still believe that to have a railcar construction facility would
require $1 billion; and, if so, how did the Treasurer derive this cost?
675. Ms R. SAFFIOTI to the Treasurer:
I refer to the Treasurer's
comments in this house yesterday regarding the building of railcars in Western Australia,
in particular his comments that over the next 10 years we will need to build,
at most, 60 railcars; and also that that would require a facility that would
cost billions of dollars—or hundreds of millions of dollars at least;
and that that would be satisfied within two months.
(1) Does the
Treasurer still believe that Western Australia will need only 60 new railcars
over the next 10 years?
(2) Does the
Treasurer still believe that to have a railcar construction facility would
require $1 billion; and, if so, how did the Treasurer derive this cost?
AnswerView source ↗
I thank the member for the question.
(1)–(2) What I said,
correctly, was that we are currently purchasing 10 three-car —
Several members interjected.
Dr
M.D. NAHAN : Calm down!
The
SPEAKER : Give the Treasurer a chance.
Dr
M.D. NAHAN : We are currently committed to purchasing—ordered—10
three-car sets for the Forrestfield–Airport Link. That is the B-series.
Several members interjected.
Dr
M.D. NAHAN : No, no; just the B-series. Yesterday, I thought it was 50, but
it is actually 10 B-series three‑car sets; okay? We are also moving to
the C-series, with 50 six-car sets.
Several members interjected.
Dr
M.D. NAHAN : Yes. We have not ordered those yet; there are 50 six-car sets.
Several members interjected.
The
SPEAKER : Members!
Several members interjected.
Dr
M.D. NAHAN : The $1 billion included not only purchasing the railcars, but
also all associated additional infrastructure—all associated
infrastructure. This started from a criticism—I made it legitimately
and stand by it—I made of the Labor proposal to build a railcar
manufacturing plant in WA. The opposition committed to investigate that, and I criticised
that in my budget speech—appropriately so. The member for West Swan
then indicated that if Victoria can do it, why can we not? Victoria has
committed to a project to purchase 65 railcars, in a joint venture between
Downer Rail and a large Chinese company. All I can say about this thing is that
much of the money spent there is exactly what we are doing. It is building new
depots, large and small. Victoria's project also includes 30 years'
maintenance of the railcars. A great deal of the expenditure in Victoria, as it
would be done here, is done locally by maintaining the depots and whatnot.
Several members interjected.
Dr M.D. NAHAN : The
head of the Australian Workers' Union described and criticised the
Victorian project as such —
''The decision is plain wrong
when $2 billion of Victorian taxpayers' money goes to a contractor with
a track record of not delivering the goods, or the jobs,'' Mr Davis
said.
''The contract should have
gone to the bidder who would create the most local jobs. It is beyond
disappointing when jobs go to China, but this is heart-breaking to see what
should have been a manufacturing boost for the state turned into little more
than an assembly project.''
That is what the opposition is
promoting.
Mr
M. McGowan : Who said that?
Dr
M.D. NAHAN : Mr Davis, head of the Australian Workers' Union.
(1)–(2) What I said,
correctly, was that we are currently purchasing 10 three-car —
Several members interjected.
Dr
M.D. NAHAN : Calm down!
The
SPEAKER : Give the Treasurer a chance.
Dr
M.D. NAHAN : We are currently committed to purchasing—ordered—10
three-car sets for the Forrestfield–Airport Link. That is the B-series.
Several members interjected.
Dr
M.D. NAHAN : No, no; just the B-series. Yesterday, I thought it was 50, but
it is actually 10 B-series three‑car sets; okay? We are also moving to
the C-series, with 50 six-car sets.
Several members interjected.
Dr
M.D. NAHAN : Yes. We have not ordered those yet; there are 50 six-car sets.
Several members interjected.
The
SPEAKER : Members!
Several members interjected.
Dr
M.D. NAHAN : The $1 billion included not only purchasing the railcars, but
also all associated additional infrastructure—all associated
infrastructure. This started from a criticism—I made it legitimately
and stand by it—I made of the Labor proposal to build a railcar
manufacturing plant in WA. The opposition committed to investigate that, and I criticised
that in my budget speech—appropriately so. The member for West Swan
then indicated that if Victoria can do it, why can we not? Victoria has
committed to a project to purchase 65 railcars, in a joint venture between
Downer Rail and a large Chinese company. All I can say about this thing is that
much of the money spent there is exactly what we are doing. It is building new
depots, large and small. Victoria's project also includes 30 years'
maintenance of the railcars. A great deal of the expenditure in Victoria, as it
would be done here, is done locally by maintaining the depots and whatnot.
Several members interjected.
Dr M.D. NAHAN : The
head of the Australian Workers' Union described and criticised the
Victorian project as such —
''The decision is plain wrong
when $2 billion of Victorian taxpayers' money goes to a contractor with
a track record of not delivering the goods, or the jobs,'' Mr Davis
said.
''The contract should have
gone to the bidder who would create the most local jobs. It is beyond
disappointing when jobs go to China, but this is heart-breaking to see what
should have been a manufacturing boost for the state turned into little more
than an assembly project.''
That is what the opposition is
promoting.
Mr
M. McGowan : Who said that?
Dr
M.D. NAHAN : Mr Davis, head of the Australian Workers' Union.
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