Labour supports paying three times as much for a boat

The Herald reports:

The Government has defended its decision to award an $8 million ferry contract to a Bangladesh company rather than a local boat builder as the option offering the best value for money.

Economic Development Minister Steven Joyce said the difference between the local tenders and the Bangladesh bid was around $14 million.

“The numbers here were just too big to bridge, whatever way you want to cut it. If we were to prefer New Zealand suppliers at any cost, it would be a recipe for economic disaster,” Joyce said.

Twelve shipyards from Australia, Bangladesh, China, New Zealand, Poland and Singapore submitted tenders for the 43m vessel.

If the costs are similar, then there is sense in favouring the local company. But its would be a reckless use of taxpayers money to pay three times the price, just to go with an NZ company.

Also note that with CER one can not discriminate between NZ and Australian tenders.

Labour’s spokesman for economic development, , said the contract showed the Government’s new procurement rules were merely paying lip service. “It is bizarre New Zealand’s boat building industry was good enough for Oracle Team USA but is not good enough for the Pacific Islands,” Jones said.

So Labour support the taxpayers paying an extra $14 million. Is it now their policy that they will withdraw from all trade agreements and CER and ban all overseas companies from being able to tender for NZ Government contracts? I presume they will also be happy for overseas Governments to do the same, and ban NZ companies from being able to win overseas Govt contracts.

Comments (147)

Login to comment or vote