Answers to Questions

TRAMS AND TRAINS

173 The Hon. D.G.E. HOOD (28 October 2008) (Fifty-First Parliament) (Third Session). Can the Minister for Transport advise:

1. Will the state government upgrade or build new facilities to manufacture our new trams and trains here in South Australia, keeping employment here for those who live in the state; or

2. Will our new rolling stock be built interstate or overseas?

The Hon. I.K. HUNTER (Minister for Sustainability, Environment and Conservation, Minister for Water and the River Murray, Minister for Aboriginal Affairs and Reconciliation): The Minister for Transport Services has received this advice:

1. In the international and national markets, South Australia's orders for trams and trains are relatively modest, though significant for the size of our city. The state government is committed to, and considers, local and Australian content in all of its procurement processes, usually requiring bidders to provide a local content policy, whereby the opportunity for local industry to support an overseas or interstate acquisition is identified. This was a mandatory requirement as part of the new electric train acquisition. The government also considers value for money and whether the necessary skills, expertise and resources exist locally. However, it is not in the practise of creating economically unviable businesses.

2. The state government has purchased six Alstom Citadis trams from the Madrid government infrastructure owner Mintra, as these trams were excess to their needs. These trams were built in Europe. Despite Melbourne being the second largest tram operator in the world, it has been many years since Melbourne had trams built in Australia. However, in October 2010 though, the Victorian government announced an order for trams to be built by Bombardier Transportation Australia, located in Dandenong. This order is for the substantial number of 50 trams, with large numbers of additional trams to be ordered as Melbourne replaces its older trams in the future. This development will be closely monitored by the South Australian government.

With regard to the new electric trains, in November 2010, the Minister for Transport and Infrastructure, the Hon. Patrick Conlon MP, announced that Bombardier Transportation Australia had been selected as the preferred bidder, with the trains to be built in Dandenong, Victoria.