A MID NORTH COAST bus manufacturer may be at risk of closing over what Member for Oxley Michael Kemp has described as a “broken Labor promise”.

Express Coach Builders in Macksville has reportedly been forced to lay off a quarter of its workforce in recent months, with Mr Kemp pointing the finger of blame at the State Government for having “failed to finalise” the new Bus Procurement Panel 4, an approved manufacturers list with updated building guidelines.

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In NSW, contracted bus operators purchase new buses from the Transport for NSW Bus Procurement Panel consisting of pre-approved prime manufacturers.

These prime manufacturers regularly engage subcontractors, like Express Coach Builders, to assist in the manufacture of new buses.

Transport for NSW (TfNSW) has no direct engagement with these subcontractors and for reasons of fairness and probity cannot directly intervene in the procurement process.

Bus Procurement Panel 3 was established on 20 March 2020 for an initial period of five years (two years with three one year extension options).

TfNSW activated two of the extension options, in March 2022 and March 2023.

Mr Kemp said uncertainty over the delivery of Bus Procurement Panel 4 has left “jobs hanging on the line”, claiming to have been calling on the State Government to release Panel 4 since last year.

He said the delays are “a slap to the face for regional manufacturers who are now left without any orders in the pipeline”.

“I met with Transport Minister Jo Haylen and a senior staffer from the Minister of Regional Roads and Transport Jenny Aitchison’s office in December, who shook my hand, looked me in the eye, and assured me that Express Coach Builders would have the newest specifications before Christmas,” Mr Kemp said.

“A month later, we are still stuck in this situation where one of Macksville’s largest employers could be forced to shut down, while Labor continues to ignore the hardships this setback has imposed on our valuable manufacturing industry.”

Express Coach Builders began its operations in 1995 and has since expanded their production line from 20 vehicles to 75 per year, including coaches and school buses.

Now down to 40 employees, Express Coach Builders Director Mark Foster is fearful the business may have to close after almost three decades of service to the community, which provides opportunities to more than 100 apprentices and trainees.

“It’s terribly sad to put your heart and soul into something you love for it to be potentially taken away because the government and their agencies can’t sort out a procurement process,” Mr Forster said.

“Both ministers have the power to intervene and get the Panel 4 list out or at least offer relief to manufacturers to stay afloat.

“I had to lay off staff just before Christmas – no employer wants to do that.

“I do not want to start the new year with more, so I am pleading with the government to step up and fix it.”

A spokesperson for NSW Transport Minister Jo Haylen however, said the release of Bus Procurement Panel 4 is not delayed.

“The current panel, Bus Procurement Panel 3 is due to expire on 19 March this year,” they said.

“The process to finalise its replacement – Procurement Panel 4 – will be completed by 1 March.

“Bus operators can and have continued to place orders for new buses under Procurement Panel 3, there has been no direction to operators to delay new bus orders until Procurement Panel 4 is established.

“Express Coaches has undertaken work for primary manufacturers on orders taken under Procurement Panel 3 after March 2023.”

The spokesperson indicated that Minister Haylen has engaged with the department and Mr Kemp to ensure that Express Coach Builders, like other local manufacturers, are given an opportunity to be selected to undertake subcontracting work for new buses as part of Transport for NSW bus panels.

“This has included meeting with the Local Member and to make sure that appropriate senior officials from Transport for NSW are engaging with Express Coach Builders when they have asked for information,” they said.

“The department advised that it had targeted to issue Bus Panel 4 Deeds – the first step to move to a new bus panel – to manufacturers prior to Christmas last year.

“It’s disappointing that it did not meet this target date.

“However, letters will be sent to manufacturers this week notifying them that the new bus panel be in place by 1 March.”

A Transport for NSW spokesperson confirmed that NSW Bus Procurement Panel 4 is on schedule to commence in March 2024, including with sub-contractors chosen by the prime contractors to be in partnership.

“Contracted operators have a choice of supply of buses from the bus procurement panel when buses are to be replaced.

“Operators undertake due diligence in selecting the appropriate bus and bus body combination to suit the operating conditions.

“Transport for NSW works hard to support the bus manufacturing industry, however, we do not promote any specific prime or bus body manufacturers or suppliers individually as this would compromise the integrity of our procurement requirements,” the spokesperson said.