Phil Goff says government departments will be required to give preference to firms employing local workers when awarding contracts under Labour’s procurement policy.
“What we want is a government procurement policy that does take into account the wider cost and benefit of New Zealand companies providing these services, and a lot of other benefits aside,” Mr Goff told NZPA.
It sounds fine in theory but in practice it would be taking us back more than two decades to the bad old days when the economy was distorted by subsidies and trade barriers.
If everything else was more or less equal there could be a very good case for awarding a contract to a company which employs local staff.
But if the price was higher or quality lower it would be effectively a return to subsidies.
Goff acknowledges that too:
Asked if there was a danger that favouring New Zealand companies could end up costing more, Mr Goff said cost and quality would still be the paramount considerations.
In other words, the policy is a slogan without substance.
Government departments would be acting irresponsibly if they awarded contracts to companies which provided goods or services at a higher price or inferior quality just because they employed local staff.
Homepaddock 
What political BS>
Building new rolling stock at Hillside is as relevant as building houses with rimu framing or putting Colin Meads in the test team next Weekend.
Yes it is sad that Hillside has to move on and 44 people lose their jobs but that is the real world and PG is just acting as a politician whose use by date is not just passed but has come off the container.
During a NZMCA Rally at Whitecliffs Domain last year we visited a nearby “blacksmiths shop” where an ex NZR tradesman makes springs for older and antique rolling stock. It is a one man band, he has accumulated the necessary equipment from disposals and as a part hobby, part income generating activity he is able to keep up with the dwindling demand and is a happy man.
Even he realises that his place in the future of rail in NZ is very limited.
Had Dinner the other evening with a senior exec of Toll NZ he had an interesting take on the future of Freight in this country, a major plank of which was the rebuilding of coastal shipping with an emphasis on container type units and no freighting of rolling stock ,
the bypassing of the CHCH to Picton line and other major revamps of how we get heavy freight around these islands.
Had some interesting facts on which lines have a future whether we adopt the theories he mentioned or not, as the politics will dictate.
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