Downer has lost its roading contract with Rangitikei District Council in favour of Manawatu company Higgins. The council announced yesterday it and two other district councils (Manawatu and Horowhenua) had entered a contract with Higgins. It will begin on July 1.
Last week more than 20 Marton business owners pleaded with council to retain Downer, who have a Marton depot. Taking the contract out of town would cost up to 30 local jobs, they said.
McVerry Crawford manager David Wilson said it would be a "kick in the backside" for local business. "I think you guys are about to put the nail in the coffin of a number of our businesses," he told the council last week.
After a tender process, council voted last week which company to award the contract to. It was done behind closed doors due to commercial sensitivities.
After yesterday's announcement, Rangitikei mayor Andy Watson said the new contract would save council about $1.3 million over three years. He supported the move as the best option for the district. "It will save the council a significant amount of money. In that sense I'm happy. In the sense of, have Downer done a good job and have they employed local people? It's disappointing to lose them."