Tender decision threatens jobs
MORE than 1000 Australian jobs will be threatened by train manufacturer Downer EDI’s decision to pull out of a Queensland Rail tender to build new rolling stock.
Downer EDI has pulled out of a global tender to provide Queensland Rail with 200 three-car sets.
The Queensland Government announced in October last year it would invest $ 189 million to buy another tilt train and upgrade its existing two.
The work was to be carried out at Maryborough’s Downer EDI facility, supporting 800 direct and indirect jobs in that region.
The step was also meant to support the company so it could compete for a future lucrative QR contract.
In an email to staff, Downer EDI said the decision was not taken lightly.
‘‘ In Downer EDI’s view, the terms and conditions . . . relating to the bid and the terms and conditions of the contract are too onerous, and the risks borne by the contractor are too great, to proceed with the bid and incur tender costs in excess of $ 10 million,’’ the email said.
Premier Anna Bligh said she hoped the company’s joint venture partner Bombardier would continue with the bid.
‘‘I’m very disappointed with Downer EDI. The Queensland Government backed them with the tilt train contract. Unfortunately they haven’t backed themselves,’’ she said.