THE Launceston-based company that missed out on a multimillion-dollar TasRail contract that went to a Chinese company has questioned the state government's commitment to a local manufacturing industry.
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Steel fabricator Crisp Bros Haywards said Australian suppliers were not on a level playing field when competing for contracts against Chinese companies and government-owned businesses should give greater consideration to the benefits of using Tasmanian companies.
Haywards had formed an alliance with other fabrication workshops to bid for a contract to replace the state-owned rail operator's ageing rolling stock.
TasRail this week announced Chinese-owned CNR-Australia had been selected to build the 191 wagons for ``substantially less'' than the $20 million budgeted.
Haywards managing director Steve Edmunds said his group was ``extremely disappointed'' to miss out.
The deal would have represented 18 months' work for 100 people.
``It is very concerning and regrettable that we have lost the opportunity to upskill our workforce and to allow us to provide employment opportunities, especially new apprentices who form a critical part of our workforce,'' Mr Edmunds said.
``We are very annoyed that we're continuing to have contracts awarded to Chinese companies based on low prices as a result of substantial government export incentives, very low manufacturing input costs, lower labour costs and lower quality and safety standards.''
In comparison, he said Tasmanian companies had to budget for high energy, transport and labour costs.
``There's not a level playing field. We then question whether the state government wants a manufacturing industry in Tasmania.''
Mr Edmunds said his company was not considering laying off any of its 240 employees but faced a challenging year.
TasRail chief executive Damien White confirmed a Tasmanian company had been shortlisted but a local supplier would have cost taxpayers more.
Mr White said the new 26 ore wagons, 17 coal wagons, 18 cement wagons and more than 100 for containerised freight were expected to be ready from mid-2013.
Late last year, TasRail ordered 17 locomotives to be built in the US for $60 million.
Haywards was last year awarded the contract to build 56 towers for state-owned Hydro Tasmania's Musselroe wind farm.
