Ensuring Hawke's Bay contractors get cyclone recovery work is an increasing priority.
An auditor may be appointed to ensure Hawke’s Bay contractors get their slice of an estimated $1 billion infrastructure resilience spend up.
Tukituki MP Anna Lorck said she was eager to see the work of the Regional Recovery Agency’s progressive procurement process - to rebuild cyclone-damaged roads, bridges and stopbanks- go to local contractors and businesses.
Economic forecasts suggest Cyclone Gabrielle might take a $1b bite out of the Hawke’s Bay horticultural industry.
But the loss of local economic activity could be offset by infrastructure work - provided it gets into the right hands, Lorck says.
“Hawke’s Bay and our impacted communities have been hit hard by the cyclone and need ongoing support to help rebuild their lives, and that means building back stronger and much more resilient infrastructure.
“A big part of that is ensuring a proactive approach that guarantees Hawke’s Bay gets as much opportunity as possible from the work ahead. And, as we do, this does create a once-in-a-generation opportunity to grow our capability and capacity and build the region’s workforce with transportable and new skills.
“This also has the significant benefit of the money earned going back into the region’s economy, further supporting local service providers, hospitality and retailers – those businesses that are also so critical to our regional growth.”
Lorck’s fear is that the bulk of infrastructure project funding will go to international and national firms and not benefit the communities that need it most.
To that end, the Regional Recovery Agency (RRA), which co-ordinates efforts on behalf of Hawke’s Bay’s six councils, iwi and central government, says it has developed an approach to prioritise the local workforce where possible.
That includes the preferred use of local and Māori suppliers, as well as on-the-job training for those who require it.
“For example, central government entities Waka Kotahi [New Zealand Transport Agency] and KiwiRail have established the Transport Rebuild East Coast alliance model to lead their rebuild work,” the RRA said in a statement.
“This approach will cover both physical works and professional services. While focused on major national firms with significant capacity, we understand the arrangements include specifying at least 30 per cent local supplier involvement in subcontractor arrangements.
“They will also likely look to engage local labour.”
But that remains a little informal. So the Regional Economic Development Agency, with RRA support, has suggested an “auditor” be installed to ensure Hawke’s Bay labour and expertise is definitely involved across the various rebuild projects.
The RRA says that would require a definite “framework” which would take the Government and councils’ intention that local workers be awarded contracts and turn it into a reality.
“This framework will likely mandate and support local supplier involvement and progressive procurement approaches, and will need to contain proposed policy and guidance with a set of targets,” said the RRA.