Movies and casinos, but not rail?

Steven Joyce
Steven Joyce
It is puzzling that this Government can break the rules - or at least create new ones - to allow films to be made in Wellington, or facilitate the growth of gambling in Auckland, yet it will not lift a finger to protect jobs and safeguard the future of an important national engineering industry in Dunedin.

It is hard not to discern a pattern, nor ascribe a political dimension to this unhappy state of affairs. And while the present indifference eminating from the capital is attached to the National-led Government, arguably the city and other communities south of the Waitaki have been ignored in the past under Labour. Political stability, it seems, has its costs.

With respect to the issue of the moment, there is a growing level of dissent among city residents as they watch with disappointment the refusal by Transport Minister Steven Joyce to offer assistance to KiwiRail's Hillside Workshops as it faces the redundancies of nearly one-quarter of its workforce.

KiwiRail accepted a Chinese tender to build rolling stock and locomotives for the $500 million electrification of Auckland's rail network and, subsequently, 500 new flatdeck wagons. Hillside was prevented from tendering for the former and its bid for the latter came in higher by amounts varying, according to source, of between 15% and 25%.

There are no plans to contract further engineering work to Hillside to build flatdeck wagons. If Dunedin is to retain an engineering presence at Hillside it seems it will be through the efforts of its workers and those in the city - including the Rail and Maritime Transport Union, the Dunedin City Council, Otago Chamber of Commerce and Dunedin politicians - who are campaigning on its behalf.

Mr Joyce says the rules could not be changed for KiwiRail. If the Government could not dictate to privately-owned companies about commercial decisions, he said, neither could it force KiwiRail to use its own local workshops situated in Dunedin and Lower Hutt - coincidentally in seats held by Labour MPs.

But last year, Prime Minister John Key and Warner Brothers executives hammered out a deal to ensure the Hobbit would be filmed in New Zealand after actors threatened strike action.

Mr Key agreed to tighten up employment laws in the film industry and give extra tax breaks, despite the film being ready without them before the union ultimatum. The employment law change made it less likely for workers to embark upon an employment dispute in the middle of the project.

The Prime Minister has also been willing to bend the laws to accommodate another commercial enterprise, SkyCity Entertainment.

In return for SkyCity spending $350 million on building a National Convention Centre beside its Auckland casino, Mr Key appeared last week accommodating to the prospect of a change in the requisite laws and to acquiescing in the casino company's demands. These included an increase in the number of its gaming tables and machines and an extension of its gambling licence past 2021. Where does that leave Dunedin and its Hillside workshops?

Electorates south of the Waitaki have a long history of stability when it comes to electing their politicians. In the case of Dunedin, the city regularly supplies Labour MPs first to caucus and then to Cabinet. But even when there were three Labour MPs in the city, and a Labour government in power, the MPs, including former finance minister Michael Cullen, faced a battle to get fiscal wins for the city and the South.

It is the same in reverse with National. While Labour ignores the city because of its penchant for electing Labour MPs, National tends to punish the city for the same reason. Even former Dunedin National list MP Katherine Rich faced caucus resistance when she put Dunedin causes to the forefront.

In Southland, the seats are usually held by National politicians and Clutha-Southland MP Bill English, who is also Finance Minister, is hardly going to lead the charge with what could be perceived as pork barrel politics given his mastery of fiscal restraint.

In the run-up to this year's election, current and aspiring politicians need to be put on the spot over how they view the future of the South - and what they intend to do to enhance its prospects. Voters must then hold those MPs and their political parties alike accountable.

 

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