WA Companies Snubbed by Labor

Jun 21, 2020 | State News

WA Liberal spokesperson for Transport Libby Mettam has called on the WA Labor Government to prioritise local companies in their delivery of major infrastructure projects.

“At a time when there are more unemployed West Australians than ever before it is infuriating that Labor have ruled local WA contractors out of bidding on the Morley Ellenbrook train line and will instead award the work to a tier 1 international contractor,” Mrs Mettam said.

“While it is certainly welcome to see the Tonkin Gap Project has allowed local contractors to compete, there is an outstanding concern about the Morley Ellenbrook line, with the McGowan Labor Government announcing the $1 billion Morley Ellenbrook line would be shortlisted to two tier one foreign led consortiums.

“The new Office of Major Transport Infrastructure Delivery (OMTID) is a reflection of the McGowan Labor Government’s poor performance in the Transport portfolio – a point which has been highlighted by the Morley Ellenbrook project.

“We already have a METRONET taskforce chaired by the Premier, METRONET Executive Committees and an integrated METRONET Office comprising specialists from across Government.

“The announcement of an Office of Major Transport Infrastructure Delivery simply creates a new layer of bureaucracy around projects that are already heavily delayed.

“It is understood the department will oversee the major projects of the METRONET Program including the Thornlie Cockburn Line, Yanchep Rail Extension, Morley Ellenbrook Line, Bayswater Stations, Byford Rail Extension – projects that have so far missed most major milestones and exceeded their original cost by hundreds of millions of dollars.”

Mrs Mettam said the McGowan Labor Government seemed to be focused on providing more support to overseas owned construction companies than Western Australian owned companies.

“It is of significant concern that this office is largely overseeing projects over $100 million, which are being delivered by foreign tier-one contractors as a result of Labor’s flawed procurement process,” she said.

“Spanish owned CPB Contractors were awarded the contract for Yanchep and Thornlie Cockburn lines and Spanish Acciona subsidiary Coleman Rail have been awarded the contract for Bayswater Station.

“Collectively this is over $2.5 billion worth of work which is going to foreign contractors on projects which should have local WA mid-tier construction companies.

“Going forward it is essential that the McGowan Labor Government ensure that larger projects are planned where necessary to ensure smaller local WA tier-two contractors have the opportunity to compete.

“There is already a concern in the industry that METRONET will be a multibillion dollar Western Australian project delivered by foreign contractors.

“Instead of creating a new office that simply duplicates processes that are already in place, West Australians need a full-time Transport Minister who can do the job and deliver these job creating projects without further delays and the wasteful cost blowouts. This will be essential to our Coronavirus recovery.”

Fast Facts

  • Metronet is becoming a Western Australian project delivered largely by foreign contractors.
  • Costs associated with the Morley Ellenbrook line include; $1 billion for MEL, $253 million for Bayswater Station, $200 million for MEL works in Tonkin Gap
  • Morley Ellenbrook Line was promised $863 million, currently budget line is $1 billion. Construction was to start in 2019, contract to be awarded 2020.
  • Yanchep line promised $386 million, now $531 million (38% increase). Construction was promised for 2019, major works now late 2020.
  • Thornlie Cockburn line promised $474 million, now $716 million (51% increase). Construction was promised for 2019, major works now late 2020.
  • Byford Rail extension promised $291 million, now $481 million (63% increase). Construction promised for 2021, final business case to be delivered by late 2020.
  • The McGowan Labor Government has confirmed all of the above contracts which will form part of the OMTID will go to major tier 1 contractors (exception of Byford).
  • The McGowan Labor Government have overseen the largest cost and time blowouts for rail projects in WA history.
  • In three and a half years not a single centimetre of new rail has been laid by the McGowan Labor Government.
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