Inquiry into the State of Manufacturing in Victoria by the ......Bombardier is the only global manufacturer or producer of rail transportation passenger train and tram rolling stock

BOMBARDIER TRANSPORTATION AUSTRALIA

Inquiry into the State of Manufacturing in Victoria by the Economic Development & Infrastructure Committee

of the Parliament of Victoria SUBMISSION

Bombardier submits proposals to the Committee on how the Victorian Government could enhance its support of local manufacturing to create more skilled jobs, improve the environment and encourage innovation. Bombardier has a significant design and production presence in Australia, and together with suppliers in its production supply chain cluster is producing trains in Dandenong for operation by V/Line.

Submission by Bombardier to the Economic Development & Infrastructure Committee

CONTENTS

SUMMARY 3

1. INTRODUCTION 4

2. MANUCTURING IN VICTORIA 8

3. POLICY ENVIRONMENT IN VICTORIA 16

4. CRITERIA USED BY BUSINESSES TO TRANSFER OFFSHORE 24

MANUFACTURING TO VICTORIA

5. FACTORS WHICH INFLUENCE BUSINESSES DETERMINING 26

WHETHER TO MANUFACTURE IN AUSTRALIA OR OVERSEAS

6. CONCLUSION AND RECOMMENDATIONS 28

Figures

Figure 1: Production of a Train in a Supply Chain Cluster 10

Boxes

Box 1: Skills Required to Produce a Train 11

Tables

Table 1: Goods Used in the Production of a Train 12 Table 2: Location of Businesses in the Supply Chain Cluster 12

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Table 3: Maintenance Cost of Rail Vehicles Over a 30 Year Life 22

Inquiry into the State of Manufacturing in Victoria


SUMMARY

Every developed country should have the ability and ambition to produce high quality goods. These activities provide jobs, enhance a country’s sovereignty and self containment, and through trade, connect it to other communities, including innovation that is taking place elsewhere in the world. Bombardier, together with the businesses in its production supply chain cluster, has a significant design and production presence in Australia. Indeed, it is the only global manufacturer of rail transportation passenger train and tram rolling stock in Australia. Bombardier’s rail transportation business, together with businesses in its Dandenong supply chain cluster, is dependent on government investment in rail transportation and government purchase of locally manufactured goods. The significant benefits arising from government purchase of locally made goods through Bombardier’s Dandenong supply chain cluster include job creation, skill enhancement, access to innovation and new technology, introduction to overseas markets and the development of a strong entrepreneurial culture. The State Government would create more skilled jobs in targeted areas, improve the environment and encourage innovation if it enhanced its support for the local manufacturing of rail infrastructure. State Government policy recognises that manufacturing is changing and is being driven by technology, particularly design, R&D, licensing and branding, and importantly, manufacturing production is converging with services. Bombardier welcomes the commitment of the Government to “make substantial investments in passenger rail rolling stock over the next 15 years.” Bombardier also welcomes the decision of the State Government to identify future rail rolling stock purchases as projects of ‘Strategic Significance’. As a consequence, rail rolling stock purchases by the Government will be subject to additional local content requirements.

Page 3 The Victorian Industry Participation Policy could, however, be improved to ensure that it

properly captures local content in the manufacturing phase. Changes need to be made in the way the minimum local content target of 40% is calculated so that it accounts for only initial capital costs and related training but does not include whole‐of‐life maintenance.



The Government should give attention to solving the problems faced by manufactures that must plan their production schedules to match the often lumpy budgetary allocations of major procurements programs. The Government could assist manufactures to plan their production if departments provided appropriate lead time for the procurement of major goods. Action by government to address this issue would improve the competiveness of local businesses by assisting them to source goods and services from within this country.

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1. INTRODUCTION

Bombardier Transportation Australia welcomes the decision of the Parliament to give the Economic Development and Infrastructure Committee a reference to inquire into the state of manufacturing in Victoria. Bombardier thanks the Committee for inviting us to express our views on the inquiry’s Terms of Reference. 1 This submission was prepared by Bombardier with the assistance of the Strategic Connections Group.2

Bombardier, a global or multinational public company, operates aerospace and rail transportation businesses in Victoria and elsewhere in Australia. Bombardier’s headquarters is in Victoria and its manufacturing focus in Victoria is based around the rail transportation industry. Bombardier has a special interest in the policies and programs of governments which encourage Bombardier and similar global companies with operations in Australia to continue to invest in Victoria. 1.1 Bombardier Incorporated Bombardier has a significant design and production presence in its aerospace and rail transportation divisions in Australia. Bombardier’s Australian investment presence in rail is substantial. As well as its facilities in Victoria, Bombardier Transportation operates in New South Wales (Pymont), Queensland (Maryborough, Mayne and Milton), South Australia (Adelaide), and Western Australia (Nowergup). Bombardier also operates aerospace service and line maintenance facilities in Melbourne and Sydney, a service facility in Bankstown and a parts distribution centre in Sydney. Bombardier Transportation Australia is part of Bombardier Incorporated, a global transportation public company, with a presence in more than 60 countries on five continents.3 Bombardier Incorporated‘s headquarters is in Montréal, Canada, and its 66,900 employees located around the world, design, produce, sell and support the widest range of world‐class products in aerospace and rail transportation, using significant supply chain clusters.

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Whilst not a household name in Australia, Bombardier is a similar size to Canadian businesses such as George Weston and Thomson Reuters, 4 and sits with some of the largest businesses in the world such as Mitsubishi Motors, Goodyear Tire and Rubber, and Kimberly‐Clark.5



Bombardier’s mission is to be the world's leading manufacturer or producer of planes and trains. Bombardier’s policy is to support global employment through decentralisation. Indeed, 96% of Bombardier’s revenue for the fiscal year ending 31 January 2009, was generated outside of Canada. Most of our revenue was derived from Europe (51%), followed by USA (28%), and the Asia‐Pacific, including Australia (11%).6

Aerospace With more than 32,500 employees and well‐positioned in global markets, Bombardier Aerospace ranks as the world’s third largest civil aircraft manufacturer or producer. Its high‐performance aircraft and services set the standard of excellence in several markets, including: • Business aircraft ‐ the Learjet, Challenger and Global aircraft families • Commercial aircraft ‐ the new CSeries program, CRJ Series and Q‐Series aircraft families • Amphibious aircraft ‐ Bombardier 415 and Bombardier 415 MP aircraft • Jet travel solutions ‐ Flexjet • Specialized aircraft solutions ‐ Bombardier aircraft modified for special missions, such

as fire fighting • Aircraft services and training ‐ aircraft parts, maintenance, comprehensive training,

technical support and publications, and online services. The aerospace business is also significant for its very high investment in R&D. Rail Transportation With operations in more than 24 countries, Bombardier Transportation leads the world’s rail equipment manufacturing and servicing industry. In the Asia‐Pacific area, Bombardier Transportation has production and service centres in Australia, India, People’s Republic of China and Thailand. Its 34,200 employees deliver rail transportation solutions, including: • Rail vehicles ‐ automated people movers, monorails, light rail vehicles, advanced rapid

transit, metros, commuter/regional trains, intercity/high‐speed trains and locomotives

Page 6 • Propulsion and controls ‐ a complete product portfolio for applications ranging from

trolley buses to freight locomotives



• Bogies (wheel and axle suspension units which support rail vehicles) ‐ a product portfolio for the entire range of rail vehicles

• Services ‐ fleet maintenance, operations and maintenance, vehicle refurbishment and

modernization, and material management • Transportation systems ‐ customized “design‐build‐operate‐maintain” transportation

system solutions • Rail control solutions ‐ advanced signalling solutions for mass transit and mainline

systems. 1.2 This Submission One of Bombardier’s corporate aspirations is to strive for the “public, NGOs and Governments to welcome us because we are a well‐respected corporate citizen which contributes to the communities where we operate.” 7

Accordingly, we welcome the Committee’s invitation to express our views on the inquiry’s Terms of Reference. Bombardier has an interest in the inquiry and is in a position to advise the Committee, first on Bombardier’s experience in the local manufacturing of rolling stock for the rail transportation industry, and second on the criteria used by businesses to transfer offshore manufacturing to Victoria and the factors which influence business in determining whether to manufacture in Australia or overseas.8 These matters are addressed in sections 2, 4 and 5 of the submission. The Terms of Reference also raise questions about the policies and programs of governments which encourage Bombardier and similar global companies with operations in Australia to continue to invest in Victoria.9 Policies and programs which encourage the ongoing presence of global companies to manufacture in Victoria are addressed in section 5. Bombardier is pleased to submit public policy proposals to the Committee on how the Victorian Government could enhance its support of manufacturing and production (in particular on rail infrastructure) in a way that addresses the: • Creation of local jobs in target areas

• Enhancement of skills and innovation

• Social and environmental challenges of climate change • Increased demand for rail travel due to urban growth, climate change awareness and

increased cost and sustainability of oil supplies. • The new manufacturing and production paradigm.

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The conclusions and recommendations in section 6 bring together Bombardier’s views on additional steps the Government could take to retain existing and attract other manufacturers and producers to Victoria. 1.3 Site Inspection of the Bombardier’s Dandenong Production Centre and Suppliers Bombardier operates a world‐class railway train production centre in Dandenong and works in close co‐operation with other businesses in our supply chain cluster. If the Committee decides to undertake site inspections, Bombardier would welcome the opportunity to assist the Committee to inspect the Dandenong production centre, together with businesses in Bombardier’s supply chain cluster. 1.4 Fact Finding Interstate and Overseas

In the event the Committee decides to undertake an interstate or overseas study tour, Bombardier would welcome the opportunity to assist the Committee to make contact with Bombardier’s interstate and overseas production centres. The next section of this submission addresses manufacturing in Victoria, including the crucial subject, why the Government should support this activity.

Main Points About Bombardier

Bombardier is a global transportation public company

Bombardier has a significant presence in Victoria, namely its Australian headquarters, the rail transportation production centre in Dandenong and

associated businesses in its supply chain cluster

Bombardier wishes to contribute useful information and policy proposals to the Committee’s inquiry.

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2. MANUFACTURING IN VICTORIA

Manufacturing in 2009 is no longer the making of goods by manual labour in factories.

Manufacturing is now based around supply chain clusters of R&D and design firms, suppliers of materials and components, marketing services, and wholesale and retail businesses. This ‘new manufacturing or production paradigm’ is driven by the globalisation of R&D, production and markets, the rapid integration of large emerging countries such as India and China, and the need for customer‐focussed, environmentally sustainable products and services.

2.1 Bombardier’s Presence in Victoria Bombardier is the only global manufacturer or producer of rail transportation passenger train and tram rolling stock in Australia. Bombardier’s Australian headquarters is in Dandenong, together with its rail production and customer support centres. The Dandenong site, where 130 people are employed, comprises a 28,000 square metre production centre and a 1 km standard gauge test track located in a 17 hectare property. The site is connected to Melbourne’s suburban rail network. Dandenong, a major population business and transport hub, is the focal point of significant new public and private sector investment in infrastructure and development, and one of the Central Activities Districts identified for special support by the Government. 10 Indeed, manufacturing in Dandenong, together with other areas in the outer south‐east, northern and western suburbs of Melbourne, is the largest employing industry.11

Bombardier’s carriage maintenance depot is located in West Melbourne where 13 people are employed managing the maintenance of trains manufactured at Dandenong. Bombardier’s presence in Victoria followed the purchase of Commonwealth Engineering (Comeng) by Australian National Industries, which was sold to ASEA Brown Boveri, later merged with Daimler Benz Transportation to become ADtranz, and which in 2001, became part of Bombardier. Since 2001, Bombardier has invested A$13 million in capital funds in Dandenong, whilst expenditure in R&D reached A$9.7 million during 2007‐09. Bombardier’s presence in Victoria is dependent on: • A substantial capital investment in sophisticated transportation equipment

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• Technology take up and on‐going R&D • Skilled, mostly Victorian workforce



• A mostly Victorian supply chain cluster • Predictable, long‐term steady government demand, together with transparent planning

lead time. Bombardier’s rail transportation business is heavily reliant on government infrastructure policies and investment in passenger rail (trains and trams). The company is presently building trains in Dandenong for the State Government for operation by V/Line Passenger. Bombardier has successfully tendered for a significant portion of rail and tram transportation work in Victoria and is currently producing the Australian designed VLocity 160 diesel rail cars for V/Line. The local manufacturing content of the V/Line project is 70% local content.

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2.2 Bombardier’s Local Supply Chain Cluster

Bombardier produces tram and train rolling stock in close co‐operation with its supply chain cluster. The company’s operations are similar to the more well known motor vehicle production supply chain which designs, manufactures and exports vehicle parts and components, including engines, panels, braking and clutch systems, suspension systems, exhausts, transmissions and rear axles, air conditioning, occupant safety, vehicle instrumentation and electronics, lighting and mirrors, and wheels and tyres. The Australian Bureau of Statistics (ABS) reports that there are over 200 automobile component firms, around 500 small firms providing tooling to vehicle and component producers, and a number of other firms that provide specialist automobile services. 12

“Bombardier are one of our best employers”

“We should not be ashamed to say we buy Australian ...

we compete on true cost and quality”

Cesar Melhem, Victorian Branch Secretary, Australian Workers’ Union

According to the ABS, these collaborative arrangements, including participation in supply chains, where businesses work together for mutual benefit (but not including straight fee‐for‐service and franchising) occur in 10% of businesses, ranging from 8.7% to business employing up to 4 people, to 25% of businesses employing 200 or more people. Integrated supply chain arrangements occur in 1.8% of businesses, ranging from 1.6% to business employing up to 4 people, to 6.8% of businesses employing 200 or more people.13 Interestingly, the ABS reported that innovation‐active businesses, at 16%, were more than twice as likely to be involved in some type of collaborative arrangements than non innovation‐active businesses (6%).14

In the case of Bombardier, activities in the Dandenong plant include: • Head office activities • Design • Project management • Manufacturing management • Quality assurance and control • Sales and marketing



• Tooling • Vehicle fabrication and assembly • Testing • Maintenance support. The local businesses in the supply chain cluster provide: • Component and system design • Manufacture of steel, stainless steel, sheet metal and fibreglass components • Manufacture of sub‐assembly components • Vehicle interiors • Windows • Air conditioning • Wheels • Propulsion equipment • Communication systems • Controls • Brakes. Bombardier is committed to the success of its supply chain cluster has allocated space at its Dandenong plant to key component suppliers. Nationwide, Bombardier’s workforce comprises 339 people who together with people working in the various businesses that comprise the associated supply chain clusters build and maintain trains and trams for Victoria, Queensland, South Australia and Western Australia. The collaborative process involved in the production of a train is illustrated in Figure 1. Figure 1: Production of a Train in a Supply Chain Cluster

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Steel Fabrications

Interiors

Propulsion

Car body

Sheet metal

Tooling

Fibreglass mouldings

Communications

Brakes

Train carriage

Other Systems

Components Systems Vehicle

Source: Research by Strategic Connections Group



The extent of the supply chain that operates around the Dandenong plant is illustrated in Box 1, and Tables 1 and 2. The skills which are brought together in the supply chain to build a train are listed in Box 1, and the goods used to produce a train are set out in Table 1.

Box 1 Skills Required to Produce a Train

Design and Commercial Engineers (mechanical, electrical, electronics, communications, structural, manufacturing) Manufacturing specialists (supervisors, technicians) Project managers CAD drafting Inspectors (quality, testing) Procurement specialists (buyers) Logistics, stores, drivers Production Manufacturing Welding Fitting (assembly) Machinists Tooling Electricians Electronics technicians Fibreglass workers Painters Labourers cleaners Source: Research by Strategic Connections Group

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Table 1: Goods Used in the Production of a Train Product Estimated proportion of cost of

materials Motor systems & gear boxes 27% Materials: steel, mild, stainless 9% Electrical controls 9% Interiors: floors, walls, fabrics 6% Fabricated steel body components

6%

Fibreglass 5% Wheels, axles, bogies 5% Pipe work & ducts 3% Seats: passenger & driver 3% Sheet, structural 3% Brakes 3% Windows 2% Suspension 1% Fasteners 1% Floor covering 1% Electric cables 1% Communications 1% Couplers 1% Lights 0.5% Safety equipment 0.5% Driver controls, gauges, CCTV 0.5% Other 10% Source: Research Strategic Connections Group; estimates based on the production of an electric train There are in addition, businesses within the local supply chain cluster which provide services to the Dandenong plant, including design, quality assurance, calibration, audit, transport, craneage, machinery hire, security, facility maintenance and cleaning. The locations of the businesses, together with an estimate of the supply chain cluster workforce included in Table 1 are set out in Table 2. Table 2: Location of Businesses in the Supply Chain Cluster

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Location Estimated Number of Businesses

Estimated Size of Workforce

Victoria 80 350 New South Wales 20 60 Elsewhere in Australia 20 40 New Zealand 1 40 Asia 1 90 Europe 15 80 Source: Research by Strategic Connections Group Source: estimates based on the production of an electric train



Businesses in the supply chain play a key role in our products and services, and have a major impact on the value chain, environmental improvements and social responsibility. The businesses in the supply chain also benefit from their association with Bombardier through: • Sharing in the economic benefits of large orders that a large business such as

Bombardier is able to procure • Enhancing skills through their participation in new technological advances and access to

Bombardier’s Intellectual Property • Accessing local sources of skilled labour, including apprentices and graduates • Accessing the export market through their participation with overseas businesses, as

well as with local businesses already providing goods and services to the overseas market.

The developed supply chain in turn leads to: • Increased job creation in decentralised centres of service and production located around

the supply chain • The enhancement of creativity and innovation • A strong entrepreneurial culture. An example is the way the Bombardier Procurement System ensures that businesses in the supply chain fulfil their role as part of a complete team. Bombardier places ambitious demands on performance, and has a catalogue of criteria relating to quality guarantees, internal learning processes, pricing systems and the ability to deliver goods. Using these criteria, we strive to learn more about our suppliers’ environment and safety management systems. Our highest assessment goes to suppliers who work with an externally audited environmental management system and where a series of ecological criteria have been considered at the product development stage. In terms of workplace safety, we prefer suppliers who use a management system based on OHSAS 18001 or a comparable standard. Bombardier expects suppliers to comply with the principles in our Code of Ethics and Business Conduct and our HSE Policy. In our standard contracts, we have established a language related to supplier environmental compliance, and are expanding our coverage of health and safety requirements.

Page 14 We also hold regular symposiums and forums with key suppliers. This enables us to share

the challenges and strategies associated with suppliers’ products, and discuss emerging opportunities and technologies.



Bombardier believes that a strong commitment and a strategic approach to corporate responsibility are essential for managing the challenges and opportunities of a rapidly changing global environment. Bombardier is a signatory to the United Nations Global Compact, a voluntary initiative that promotes business leadership in support of the Compact's ten principles on human rights, labour standards, environment and anti‐corruption. Bombardier places substantial value upon suppliers in its supply chain who support and respect the internationally proclaimed human rights contained in the Universal Declaration of Human Rights, such as equality, life and security, and freedom. Compliance with the principles contained in the Supplier Code is a criterion that is taken into consideration in Bombardier’s supplier selection process. Bombardier also encourages our suppliers to implement policies, procedures, tools and indicators necessary to ensure compliance with the principles and to commit to the principles of the United Nations Global Compact and to participate in a Corporate Social Responsibility (CSR) network, such as the United Nations Global Compact, the European Association for CSR, or CSR Asia. 2.3 Why Government Must Support Manufacturing and Associated Supply Chains

Clusters Some economic commentators talk‐down the importance of Australian manufacturing to the economy. Bombardier draws the Committee’s attention to a paper developed at the Centre for Strategic Economic Studies, Victoria University of Technology on the ‘knowledge economy’ which recognises that the goods producing businesses are at the core of the economy:

The commonly held notion that a knowledge economy is a services economy is dangerously misleading. As information and knowledge add value to basic products, manufacturing and services are becoming increasingly integrated into complex chains of creation, production and distribution. At the core of the economy are goods producing industries, linked into value chains which see inputs coming from knowledge‐based business services and goods related construction and energy industries, and outputs going to goods related distribution service industries. Industries concerned with the creation, production and distribution of goods (including manufacturing) remain at the heart of the economy. For example, employment in the combined goods producing and good related industries increased by more than 764,000 in Australia between 1985‐86 and 1995‐96, and still accounts for almost 65 per cent of total employment. Our policies must reflect the increasingly complex interrelation between goods producing and related services activities in the economy and the consequent emergence of complex product systems, and not simplistic interpretations of a structural shift from manufacturing to services.15

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15Research commissioned in 2002 by the then DIIRD Office of Manufacturing, The Economic

Impact of Manufacturing Replacement Trams for Melbourne (AEC Group), showed there are significant benefits for the Victorian economy by acquiring trams from local producers. The



report (quoted by the Australian Industry Group in a submission to government) showed that by acquiring only 40 vehicles each year, it would: • Increase annual output of Victorian manufacturing by $120 million per year • Create export opportunities based around a strong and vibrant manufacturing sector

which would become competitive with overseas producers • Generate a further $87 million in supply chain based activities • Provide direct employment of 150 full time employees and 450 in the supply chain.16 For example, the ARM Group, a consortium of four local manufacturing companies based in Dandenong and who supply equipment and components to Bombardier, collectively employs 250 people and has attracted $30 million worth of work. This was a direct result of Bombardier’s contract to produce the VLocity train.17

Jobs were also created within the supply chain for disadvantaged workers. For example, Acto‐Pickering Metal Industries employs 6‐9 physically and intellectually disabled workers (10‐15 % of its workforce) at any one time. The work associated with the VLocity contract allowed the ARM Group as a whole to employ 76 unskilled job‐seekers, many of whom have since moved on to other work.18

Investment supports local economies with new jobs provided by the company, and additional employment via multipliers both within the supply chain cluster and the local economy. 19

Main Points About Manufacturing in Victoria

Businesses concerned with the creation, production and distribution of

goods are at the heart of the economy

Contemporary manufacturing is now based around supply chains clusters of business producing knowledge‐based goods and services

Bombardier’s rail transportation business, together with businesses in its supply chain cluster, is dependent on government investment in rail

transportation and government purchase of locally manufactured goods

The significant benefits arising from government purchase of locally made goods through Bombardier’s Dandenong supply chain cluster

include job creation, skill enhancement, access to innovation and new

technology, introduction to overseas markets and the development of a strong entrepreneurial culture.

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3. POLICY ENVIRONMENT IN VICTORIA

Manufacturing policy in Victoria is set out in Building Our Industries for the Future: Action Plans for Victorian Industry and Manufacturing (November 2008)20 which includes changes to the Victorian Industry Participation Policy.21

3.1 Manufacturing Policy Building Our Industries for the Future: Action Plans for Victorian Industry and Manufacturing contains several statements and policies which are supported by Bombardier and encourage our active participation in the State’s economy. The policy recognises that manufacturing is changing and that is being driven by technology, particularly design, R&D, licensing and branding, and importantly, manufacturing production is converging with services. Building Our Industries states that the Government’s goal is to reinforce Victoria’s position as a global leader in strategic industry sectors driven by skills and technology; and as a supplier of high value added goods and services.22 The policy sets out how the Government can make a contribution by: • Building a competitive business environment • Using Government purchasing power to grow local businesses • Developing the skills base • Boosting innovative capabilities • Adding value to goods and services by investing in enabling capabilities such as design,

ICT, nanotechnology and biotechnology • Supporting actions to boost sustainability and capture new business opportunities

created by carbon reduction strategies • Championing Victorian industry at the national level as industry reforms are introduced • Providing targeted support to help key industry sectors build their competitive

advantage and enter global markets.23 Bombardier acknowledges the reductions to business costs that have taken place in Victoria and supports ongoing measures to reduce the cost of doing business in Victoria.

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Bombardier considers that the Government should give attention to solving the problems faced by manufactures that must plan their production schedules to match the often lumpy

Building Our Industries includes several financial initiatives aimed at strengthening specific industry sectors and recognises the importance of supporting regional and export clusters.24



budgetary allocations of major procurements programs. The Government could assist manufactures to plan their production if departments provided appropriate lead time for the procurement of major goods. Action by government to address this issue would improve the competiveness of local businesses by assisting them to source goods and services from within this country. Government commitment to giving lead‐time notice of major procurement programs would also assist businesses such as Bombardier to have the confidence to allocate additional resources into training and R&D. The lumpy nature of supply of work, either a surge or drought, also emphasises the need and importance of government action to fund training that can deliver a skilled workforce, and research at universities, specialist institutions and R&D units in businesses. The smoothing of government orders is also addressed in section 3.3. Current socio‐economic trends strongly support rail transport because it is eco‐friendly and an immediately available solution to address today’s major challenges: climate change, urban growth, congestion, road transport generated pollution and rising energy costs. Bombardier estimates that moving one passenger‐kilometre from road to rail transport would reduce CO2 emissions by 70% per kilometre. 25

In April 2009, Environment Victoria released Victoria – the Green Jobs State: Seizing the Opportunities to coincide with the Green Jobs Summit that was organised by Environment Victoria and the Brotherhood of St Laurence. 26 The report, which included rail manufacturing in its case studies of five industries, states that Victoria is well placed to become the “Green Jobs State”.27 The report states that:

That green jobs not only deliver the double dividend of economic stimulus and environmental solutions, they can also deliver the third dimension of social equity.28

The report states, and Bombardier agrees, the green job industries need to be identified and supported through deliberate policy measures and economic stimulus packages.29

The State Government’s Victorian Climate Change Green Paper (2009) recognises that transport is the second largest producer of greenhouse gas emissions in this State, with almost 90% of transport emissions coming from road transport vehicles. The paper states:

Substantial growth in the demand for travel in Victoria is predicted over the coming decades, including forecasts of a significant increase in motor vehicle travel. If this growth in the demand for travel is not accompanied by a shift to low emissions modes of transport or improvements in vehicle fuel efficiency, it will result in a significant increase in emissions.30

The paper also notes research by the National Transport Commission which found that a carbon price alone will not lead to a significant short to medium term reduction in emissions from transport, especially freight transport. The paper states:

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18Additional measures will be needed, including a more integrated freight network, the greater use of high productivity road vehicles, more rail freight services and innovative applications of new technologies within the freight supply chain. 31



The Green paper acknowledges the Government’s “record levels of investment in the state’s transport system” and the release of The Victorian Transport Plan (2008). 32

3.2 Government Procurement for Public Transport The actions announced in The Victorian Transport Plan together with that announced in the 2009‐10 State Budget that are of interest to Bombardier include the purchase of: • Up to 70 new six‐car trains for the metropolitan system • 50 new trams • 20 new V/Line carriages. This is in addition to 130 new V/Line cars being produced by Bombardier that were ordered by the Government over several stages since 2001. These procurements are necessary because of the increase in demand and the age of the existing rail fleet (about 23 years old, where the design life is 30 years). The size of these government procurement plans compares favourably with orders Bombardier as a global group won during 2008‐09, and tenders announced elsewhere in the world. The State budget also allocates $1.2 million, over two years, to establish the Transport Infrastructure Manufacturing Scheme to boost Victoria’s capacity to manufacture trains, buses and other major transport assets.33 Bombardier waits with great interest, for further information on this scheme. The Australasian Railway Association has written:

In recent years, the New South Wales and Victorian governments have collectively ordered more than $3.8 billion worth of rail rolling stock to be manufactured overseas. This is equivalent to total annual national sales for Toyota, Holden and Ford combined. The car industry employs around 15,000 people and another 30,000 in its supply chain, and receives millions of dollars in government assistance. Given that rail manufacturing is less automated than car‐making and so has the potential to employ more people, it is clear that had this $3.8 billion of government investment stayed in Australia, it could have generated tens of thousands of jobs.34

Bombardier strongly supports action by governments to regularly allocate capital funds to rail transportation projects and the preferences by governments to purchase goods produced in Australia. Both of these activities create local jobs. 3.3 The Victorian Industry Participation Policy

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The Victorian Industry Participation Policy (VIPP) was introduced in 2001 to encourage participation by small and medium sized enterprises (SMEs) in major government



procurement contracts for projects and infrastructure, major events, investment attraction and community facilities grants. The objectives of the policy are: • To boost employment and business growth in Victoria by expanding market

opportunities for local SMEs • To provide the main contractors for major projects with increased access to a wider

range of companies able to deliver the best value for money • To promote a cultural change in local business, raising awareness and shifting

perceptions from “imports are always best”, to “local suppliers can be world class” • To expose Victorian companies to world best practice in workplace innovation, e‐

commerce and use of new technologies and materials • To develop industry’s international competitiveness and flexibility in responding to

changing global markets, by giving local SMEs a fair opportunity to compete against overseas suppliers

• Maximising skills and training outcomes. 35 Effective from 1 July 2009, the VIPP applies to all Government projects with a value of $3 million and over in metropolitan Melbourne and $1 million and over in regional Victoria, including government procurements, investment‐attraction, industry and regional development grants, major projects and events, and Partnerships Victoria infrastructure projects. VIPP is an evaluation criterion in tender selection at short‐listed stage. All short‐listed bidders are required to complete a VIPP Plan addressing three main reporting requirements: • The level of local content • The number of new jobs created • Possible skills, training and technology transfer generated by the project. According to the policy, the Plan also needs to outline how the bidder intends to implement these local industry development commitments. Major VIPP‐applicable projects meeting certain criteria can be declared ‘of strategic significance’ to the Victorian economy if they: • Have whole‐of‐life costs of $250 million or more

20 • Contribute over their whole lives to the productive capability of Victoria and make a

strategic contribution to our ongoing economic wellbeing

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• Have potential to generate significant local SME participation, employment and skills/technology transfer during the project or procurement activity (design, construction, etc)

• Have potential for building ongoing capability, skills and employment benefits within the

local SME supplier base resulting from the project • Present a clear choice between using local and overseas suppliers. In addition to the normal application of VIPP, a declared Strategic Project will be subject to a target that a minimum percentage of the procurement value (on a whole‐of‐life basis) should be comprised of local content. The level of this local content target will depend upon the project’s economic value and contribution to the productive capability of the local SME supplier base. Considering the scale and complexity of Strategic Projects, it is expected that tenderers’ VIPP Plans will take the form of detailed Local Industry Development Plans. Bombardier welcomes the commitment of the Government in Building Our Industries to “make substantial investments in passenger rail rolling stock over the next 15 years.” 36 The policy statement adds:

The procurement process for the next generation of rolling stock will facilitate the involvement of competitive local suppliers at every stage, including through establishing appropriate certainty on the quantity to be required and the delivery timelines. Moreover, local content considerations will be a formal selection criterion in tender selection (with a weighting of 10%). In designing the procurement process, the Government will aim to achieve a minimum of 40% local content on a whole‐of‐life basis – including initial capital costs, maintenance and any related training. 37

The State Government has decided to identify future rail rolling stock purchases as projects of ‘Strategic Significance’. As a consequence, rail rolling stock purchases by the government will be subject to additional local content requirements, including: • Setting a minimum local content target of 40% as measured on a whole‐of‐life basis

(including capital costs, maintenance and training) • Local content to be a formal selection criterion in tender evaluation with a weighting of

10% • Tenderers for rolling stock projects to produce detailed Local Industry Development

Plans in consultation with the ICN to be used in assessing competing bids • Tenderers to identify opportunities to train and engage apprentices. 38

Page 21 Bombardier understands that studies by Department of Innovation, Industry and Regional

Department have shown that the benefits of a local manufacturer winning this work at a rate of 20 light rail vehicles (trams) per year and achieving 50% local content would:



• Increase the value of Victoria’s manufacturing by $100 million per annum • Create 80‐100 direct full time jobs and another 250 full‐time jobs in the supply chain • Generate income of $4.3 million per year and another $9 million in income generated

through suppliers in the supply chain • Generate some $3.5 million per year for the State Government in payroll tax.39 Indeed, the State Government has stated that there could be similar or greater benefits if the next generation trains committed under The Victorian Transport Plan were manufactured in Victoria, a project expected to cost $2 billion.40

The Government’s policy is a revision of earlier prescriptions which since 1999 has resulted in purchases being made of German, French and Polish manufactured trams and trains, with fit‐outs of the Polish trains taking place in Italy and Victoria.41

If manufactured goods are imported, local communities do not derive economic and social benefits from the employment and training of the local workforce, the development or transfer of Intellectual Property and the receipt of taxes. Over reliance on the export of unimproved primary goods, whilst making a major contribution to government revenue and the income of investors, does not generate knowledge‐based jobs or play a lasting role in the development of communities. The Victorian Industry Participation Policy (VIPP) could, however, be improved. The VIPP guidelines specify that rail rolling stock projects as Strategic Projects will be “subject to a minimum local content target of 40% on a whole of life basis, and the VIPP commitments of tenderers will have a weighting of 10% in tender evaluation”. 42 Whilst Bombardier understands that the Government believes that considering value for money on a “whole of life basis” can deliver advantages to local suppliers (compared with overseas suppliers) in areas such as technical support, maintenance and after sales service, in practice this is and will not be the case. Changes need to be made in the way the minimum local content target of 40% is calculated so that it accounts for only initial capital costs and related training but does not include whole‐of‐life maintenance. Whole‐of‐life maintenance would anyway be undertaken locally and therefore should be discounted in the local content target. An aim of the Strategic Project status is to develop local industry and this will not occur if the “local content” is fully contained in ongoing maintenance.

22

Table 3 illustrates the issue. The table shows that the median capital cost for purchase of railway and tramway rolling stock is less than 50% of the total whole‐of‐life cost due to the significant cost of rolling stock maintenance over its 30 year life. As maintenance is always carried out in Australia, the 40% local component of this policy will always be satisfied by maintenance alone. This means that the train can be fully imported but still satisfy the local content requirement of the policy.

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Table 3: Maintenance Cost of Rail Vehicles Over a 30 Year Life Vehicle type

Maintenance cost

Av km travelled

Maintenance cost pa (including training)

Lifecycle maintenance cost, and as proportion of whole of life cost

Purchase price (including spare parts & training)

Total whole of life cost

Electric train

$0.65c per km

180,000 $117,000 $3.5 million 64% of cost

$2 million $5.5 million

Tram $2 per km 75,000 $150,000 $4.5 million 53% of cost

$4 million $8.5 million

Diesel train

$1.50 per km 200,000 $300,000 $9.0 million 75% of cost

$12 million $12 million

Source: Research by Strategic Connections Group Bombardier strongly supports the Australian Industry Group, which in a submission to the State Government wrote:

The procurement requirements for any contract must, as well, not simply consider the contract as a whole. For example, maintenance contracts which are, under most circumstances, impossible to undertake offshore, should not be included in the local content quotient.43

Bombardier agrees with the Australasian Railway Association’s position on this matter:

Victorian local content rules should be strengthened to require 50% local content in manufacturing and 95% in maintenance. Because it generally costs less to maintain locally‐made vehicles (because they are designed for local conditions and are less reliant on imported parts), and local manufacturing generates significant downstream employment and economic benefits, it is also reasonable for local bids to be eligible for a price premium on overseas companies.44

The Australasian Railway Association has written:

The lack of a specific local content requirement relating to manufacturing (versus maintenance), makes the Victorian regulations weaker than examples interstate and overseas. Recent rolling stock manufacturing contracts in Western Australia mandated a 10% local content with 30% of the contract value in counter‐trade opportunities. Internationally, the United States mandates a minimum 60% local content requirement for rolling stock, the European Union 50%, China 70% and Canada 25%.45

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Bombardier also considers that penalties should be imposed if beneficiaries of the Victorian Industry Participation Policy do not deliver local content commitments according to their contractual undertakings. Research undertaken by AiG in 2008, shows that other countries have mandated the following local content rules:



• Canada: in its recent tender for rail rolling stock purchases, a 25% minimum local content was introduced

• China: requires 70% of the product to be manufactured in China and technology transfer

requirements are enforced where the locally manufactured product is owned by foreign companies

• Europe: a minimum of 50% of the product’s value in most major capital projects is to be

manufactured within the EU; a 3% price differential is applied to goods not made by European countries

• Japan: government funded contracts significantly assist Japanese companies to develop

new technologies

• Mexico: local manufacturers have a 10% price advantage whilst there are further benefits provided to companies where significant amounts of the project are completed by domestic companies

• USA : the ‘Buy America Act’ requires public transport, transit contracts using Federal

funds to have 60% of components from the US and the final assembly done entirely in the US; Australia / US and NA Free Trade Agreements are excluded from federally funded rail purchases, while a number of local States by American regulations and Disadvantaged Business Enterprises attract other local preferences for US products. 46

Bombardier supports the decision of the Council for the Australian Federation to establish a taskforce to examine the opportunities for the States and Territories to achieve both value for money and encouraging relevant Australian industry. 47 There would be considerable benefit to Australian railway producers if there was a co‐ordinated States and Territories approach to the procurement of train and tram rolling stock, given that more than $10 billion worth of orders are already or shortly to be placed. Bombardier believes that such an approach should consider the benefits of similar local content requirements, and smoothing the lumps from procurement orders so that local industry has the capacity to plan, design and produce the rolling stock (which could be up to 5 years). Page 24

Main Points About Policy

The Government should promote, foster and leverage benefits for other producers from Bombardier’s presence in Victoria

Bombardier strongly supports increased government funding, with appropriate lead‐times, for rail infrastructure and proposals to co‐ordinate the nation’s

approach to such procurement

Bombardier strongly advocates local content rules for the manufactured cost component in government procurement policies

VIPP should be changed so that the minimum local content target of 40% is

calculated to focus on the manufacturing cost component of the procurement cycle.



4. CRITERIA USED BY BUSINESSES TO TRANSFER OFFSHORE

MANUFACTURING TO VICTORIA

Bombardier has located part of its global manufacturing transport business in Victoria and is thus in a position to advise the Committee of some of the necessary criteria a company would consider in making a decision to transfer offshore manufacturing to Victoria. Consideration of the criteria and Bombardier’s comments may assist the Committee to develop an understanding of the local conditions which could drive a company off‐shore and what policies are required to encourage a company to stay, as well as attract overseas investment to Victoria. The criteria are of course comparative with conditions present or being offered in other countries or states. Global companies continually assess whether to stay in a country or to relocate; hence the criteria differ depending on whether a company or a division of the company is deciding to locate, stay or to move. 4.1 The Criteria The criteria used by business to transfer offshore manufacturing to Victoria (not in priority order) include: • Company policy to support global employment through decentralisation

• Local and regional demand for goods and services, including market access conditions,

growth potential, and the efficiency and effectiveness of transportation to markets • Infrastructure (including availability, condition, reliability and age) for production,

communications and transport • Productive workforce, including availability of skills, government training support,

consistent labour relations and costs • Supply chain clusters, including a range of easily accessible supply and other services and

processes • Links with R&D facilities, including public and private institutions, and universities • Materials, including cost and the efficiency and effectiveness of transportation

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• Natural environment for staff and business, including wider environmental policies and those affecting and protecting specific manufacturing properties, for example from



pollution and residential encroachment

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• The wider social environment including safety, cultural and political stability,

opportunities for education, employment and recreation • Market failure issues, including support of innovation, local industry investment,

marketing of the State’s ‘brand’ overseas and advocacy of State issues with central governments and international bodies

• Government policies, including taxes and tax treatments, charges, procurement budgets

and programs that mandate strong support local manufacturing and supply chain clusters

• Public sector processes, including transparency, honesty, legal processes, support of

business and easy access to decision‐makers • Banking system, including the availability of finance for investment and R&D. 4.2 Policies and Programs Which Encourage the Ongoing Presence of Global

Companies in Victoria Criteria specific to Bombardier in deciding to stay or move include: • Government budget certainty for transportation procurement

• The condition of supply chain clusters, including Government policies and strategies that

value and support local manufacturing and supply chain clusters • Government recognition of business investment and the importance of manufacturing

industry in Victoria • How government policies and programs are administered by government departments • Cost of doing business, including taxes and tax treatments • Workforce skills, government training support, labour relations and costs.

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Main Points About Transferring Offshore Manufacturing to Victoria

Overseas companies will assess the attitude of government to manufacturing by examining government policies and programs, and investigating how government actually values and supports continued

investment by local manufacturers

Bombardier supports commitments made by the State Government on investment in rail infrastructure, reducing the cost of doing business

and to training

Bombardier urges the State Government to continue to invest in rail infrastructure with a strong emphasis on local content.


5. FACTORS WHICH INFLUENCE BUSINESSES DETERMINING WHETHER TO

MANUFACTURE IN AUSTRALIA OR OVERSEAS

The Committee is required to consider the factors which influence businesses in determining whether to manufacture in Australia or overseas. This section of the submission addresses the factors listed in the Terms of Reference. 5.1 Intellectual Property Rights

The retention of intellectual property rights has not been an issue for Bombardier in Victoria. Indeed, Bombardier shares its intellectual property with businesses in its supply chain cluster. Bombardier also shares the intellectual property of its public transportation products with government so that whole‐of‐life maintenance outcomes are achieved. Australia’s legal structure represents a competitive advantage for Victoria compared to countries which have an inadequate enforcement system. 5.2 Maintaining Consistent Quality Standards With Commonwealth and State Laws The maintaining of consistent quality Standards in line with both Commonwealth and State laws has not been an issue for Bombardier, although we have been concerned that some local and international Standards and practices may have not been met by imports. 48

The federal system in Australia is a competitive disadvantage for Victoria compared to countries with unitary governance or uniform rules and standards. Victoria should continue to pursue the making and administration of uniform rules and standards both with the Commonwealth and through intergovernmental forums such as the Council of Australian Governments’ (COAG) and the Council for the Australian Federation. 5.3 Probity Matters The strength of probity in government has not been an issue for Bombardier in Victoria. Australia’s legal structure represents a competitive advantage for Victoria compared to countries which have not developed high standards of honest and ethical conduct, propriety in dealings and transparent processes where tenders are all treated in a fair and equal manner. For example, Bombardier can report that the tender process for the Melbourne metropolitan tram and train franchises was managed in a very professional manner by the Department of Transport.

Page 28 5.4 Assistance and Incentives Provided by Governments



This issue is addressed in section 3.4 of this submission where Bombardier recommends improvements to Victoria’s manufacturing policies and programs. 5.5 Impact of the Global Financial Crisis on the Location of Manufacturing Bombardier does not expect the Global Financial Crisis to have a major or lasting impact on the rail industry. As noted in our 2008‐09 Annual Report, the fundamentals of the industry are strong and many of our customers are planning large replacement orders in the coming years that cannot be delayed too long for operational reasons. Australia, like other countries around the world has embarked on a stimulus program and which includes rail infrastructure funding. These measures are supported by Bombardier.

Main Points About Factors Which Influence Business Location Decisions

Victoria has a competitive advantage over countries which have not fully embraced the enforcement of IP and transparent government processes and

probity

Victoria should continue to pursue the making and administration of uniform rules

and standards with the Commonwealth, and through intergovernmental forums such as COAG and the Council for the Australian Federation

Victoria should improve its manufacturing policies and programs to better

demonstrate certainty of investment in transport infrastructure and support for development of a strong, sustainable and strategic manufacturing industry in

rail

The Global Financial Crisis is not expected to have a major or lasting impact on the rail industry.

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6. CONCLUSION AND RECOMMENDATIONS

Every developed country should have the ability and ambition to produce high quality goods. These activities provide jobs, enhance a country’s sovereignty and self containment, and through trade, connect it to other communities, including innovation that is taking place elsewhere in the world. 6.1 Conclusion The challenge for the Committee will be to develop practical measures to encourage global companies to continue to invest in Victoria, and to attract new offshore producers to work in this State. Government support of existing companies sends positive messages to overseas businesses considering whether or not to invest in Victoria. Large overseas‐based businesses, such as Bombardier have the willingness and capacity to lead the development of supply chain clusters, share systems and IP, and to introduce those businesses to new markets. 6.2 Recommendations to the Committee

1. That the Government supports the creation of local jobs by having a preference to purchase goods produced in Australia.

2. That the Government regularly allocates capital funds for rail transportation.

3. That the Government provides appropriate lead time for the procurement of major goods to assist local businesses to plan their production schedules.

4. That the Government pursues national co‐ordination of the procurement of train

and tram rolling stock, including planning and local content requirements, in appropriate intergovernmental forums.

5. That the Victorian Industry Participation Policy be improved to properly capture local content, including changing the way the minimum local content target of 40% is calculated so that it accounts for only initial capital costs and related training but does not include whole‐of‐life maintenance.

6. That the penalty regime for non compliance with local content undertakings made to

the Government be reviewed.

7. That the Government takes a lead in intergovernmental forums to pursue the application of uniform rules and standards throughout the country.

Page 30

Dan Osborne Managing Director



Bombardier Transportation August 2009

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1 Letter of 30 June 2009, from the Chair of the Committee inviting Bombardier to make a submission to the inquiry 2 Strategic Connections Group a consultancy to the rail industry which brings engineering, social science and creative business skills and experience to help clients solve problems and manage projects within the underlying political and socio‐economic environment 3 North and South America, Europe, Asia and Australia 4 Other companies listed on the Toronto Stock Exchange’s S&P/TSX 60 share index; the index has 60 constituents and represents Canadian large cap securities 5 Bombardier with a revenue of US$1,9721 is ranked 468 in the 2009 Fortune Global 500 Annual Ranking of the world’s largest corporations; Mitsubishi Motors ranks 470, Goodyear Tire & Rubber 472 and Kimberly‐Clark 475 6 As at 31 January 2009 7 Bombardier Inc. 2008‐09 Annual Report, page 33 8 Terms of Reference 1 9 Terms of Reference 2 10 The Revitalising Central Dandenong initiative is being delivered by VicUrban, in partnership with the City of Greater Dandenong: Dandenong Central Activities District page on Department of Planning and Community Development web viewed on 28 July 2009 11 Department of Infrastructure, Transport, Regional Development & Local Government (2009) Changes in Australia’s Industry Structure: Main Cities 2001‐06, page 15 12 Sourced from article on Australia’s motor vehicle industry in ABS (2005) Year Book Australia, catalogue no. 1301.0 13 ABS (2008) Selected Characteristics of Australian Business, 2006‐07, catalogue no. 8167.0 14 ABS (2008) Selected Characteristics of Australian Business, 2006‐07, catalogue no. 8167.0 15 Houghton, J & Sheehan, P (2000) A Primer on the Knowledge Economy, Victoria University, Centre for Strategic Economic Research, page 14 16 Australian Industry Group (2008) Foundations for Successful Global Engagement Supporting Local Industry: Ai Group Submission on the Development of a New Victorian Industry and Manufacturing Strategy, page 16 17 Australasian Railway Association (2009) Rail Manufacturing in Victoria – Submission to Environment Victoria on "Victoria ‐ The Green Jobs State: Seizing the Opportunities", page 3 18 Australasian Railway Association (2009) Rail Manufacturing in Victoria – Submission to Environment Victoria on "Victoria ‐ The Green Jobs State: Seizing the Opportunities", page 5 19 The multiplier effect on output could result in an increase in $2.50 in Gross State Product for every new dollar invested 20 Published by Department of Innovation, Industry and Regional Development 21 Published by Department of Innovation, Industry and Regional Development 22 Building our Industries, page 4 23 Building our Industries, page 13 24 Building our Industries, page 26 for the Regional Innovation Clusters Program; page 51 for the Export Clusters Program 25 Bombardier Inc. 2008‐09 Annual Report, page 100 26 A report on the summit, Victoria: The Green Jobs State. Creating a green, prosperous and socially inclusive Victoria, was prepared by The Nous Group for the Brotherhood of St Laurence and Environment Victoria 27 Victoria: The Green Jobs State, page 3 28 Victoria: The Green Jobs State, page 3 29 Victoria: The Green Jobs State, page 3 30 Victorian Climate Change Green Paper, page 37



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31 Victorian Climate Change Green Paper, page 38 32 Victorian Climate Change Green Paper , page 37 33 Victorian Budget 2009‐10 Budget Paper No. 3, Service Delivery, page 17 34 Australasian Railway Association (2009) Rail Manufacturing in Victoria – Submission to Environment Victoria on "Victoria ‐ The Green Jobs State: Seizing the Opportunities", page 4 35 Victorian Industry Victorian Participation Policy which is in operation from 1 July 2009, page 1 36Building our Industries, page 17 37 Building our Industries, page 17 38 Victorian Government (2009) Submission to the Education & Training Committee Inquiry into Skills Shortage in the Rail Industry, page 8 39 Victorian Government (2009) Submission to the Education & Training Committee Inquiry into Skills Shortage in the Rail Industry, page 8 40 Victorian Government (2009) Submission to the Education & Training Committee Inquiry into Skills Shortage in the Rail Industry, page 8 41 The X’Trapolis trains were manufactured in Poland and fitted‐out in Italy; recent X’Trapolis trains purchased by the Government will be manufactured in Poland and most of these will be fitted‐out in Victoria 42 VIPP Guidelines (effective 1 July 2009), Attachment 7 43 Australian Industry Group (2008) Foundations for Successful Global Engagement Supporting Local Industry: Ai Group Submission on the Development of a New Victorian Industry and Manufacturing Strategy, page 18 44 Australasian Railway Association (2009) Rail Manufacturing in Victoria – Submission to Environment Victoria on "Victoria ‐ The Green Jobs State: Seizing the Opportunities", page 6 45 Australasian Railway Association (2009) Rail Manufacturing in Victoria – Submission to Environment Victoria on "Victoria ‐ The Green Jobs State: Seizing the Opportunities", page 6 46 Australian Industry Group (2008) Foundations for Successful Global Engagement Supporting Local Industry: Ai Group Submission on the Development of a New Victorian Industry and Manufacturing Strategy, page 18 47 Council for the Australian Federation (May 2009) Communique, page 5 48 See for example, article in the Herald Sun, “Connex Sues on Break Defect”, 28 December 2008.


Documents

Inquiry into the State of Manufacturing in Victoria by the ......Bombardier is the only global manufacturer or producer of rail transportation passenger train and tram rolling stock