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Northland business leaders are calling for local employment and procurement requirements to be included in two major infrastructure projects, saying the investments represent a once-in-a-generation opportunity for the region’s workers and businesses.
The call from NorthChamber and Northland NZ follows the start of work on the Whangārei Hospital redevelopment and confirmation of the contractor for the $3.6 billion Warkworth-to-Te Hana expressway.
The hospital redevelopment is expected to add $233 million to Northland’s GDP and support more than 2700 full-time-equivalent jobs across construction and related industries.
The final project cost of the section of Northland Expressway is expected to be $3.6 billion.
NorthChamber interim chief executive Tim Robinson is calling for minimum levels of local employment and supply of construction materials and resources to be included in the contracts of these latest two projects.
“Specifying the local supply of labour and materials has been a feature of previous government contracts, and we urge the respective ministers and their officials to include it in these two very important, large-scale contracts,” he said.
“This is a once-in-a-generation opportunity for local businesses and people to participate in what will be game-changing projects for the region.”
Northland NZ chief executive Paul Linton said the scale of investment coming into Northland creates a significant opportunity to build lasting regional capability, but large contracts need an active local procurement process that is measurable.
“Northland NZ has long argued for infrastructure investment in Te Tai Tokerau, and it’s great to see that investment arriving. However, the way these projects are delivered will determine whether local businesses, workers and communities genuinely share in the benefits.
“If we get this right, we will grow more than new assets. We will grow businesses, Māori enterprise, skills, household incomes and regional resilience, while creating pathways for our young people into long-term employment.”
Robinson said a “willing and able pool” of prospective construction workers combined with a renewed NorthTec is a “winning formula” for Te Tai Tokerau.
“We can offer qualified construction workers immediately to fulfil the lead contractors’ requirements, as well as offering locally-owned building supply companies new opportunities to fulfil these contracts,” he said.
NorthChamber is actively working with businesses and agencies such as the Ministry for Social Development to ensure that a coordinated and compelling proposition is presented to lead contractors, which demonstrates local capability and the ability to deliver.
“We have a mandate to be part of the process and are looking forward to working with the respective ministers to achieve this,” Robinson said. “We all need to benefit from it.”
