Back on track: Auckland's rail system could stimulate the economy

According to this article, business leaders in Auckland are lobbying to locally manufacture electric trains for New Zealand’s rail system. A recently released report suggests that assembling 70 percent of the trains locally could contribute as much as a quarter of a billion dollars to the country’s GDP. Furthermore, it would allow for the creation of almost 1300 jobs. The creation of these new jobs would only serve to enhance the currently slumping economic conditions. This would be done by stimulating local spending and, thus, improving currently lackluster sectors of New Zealand’s economy such as the housing industry.

New Zealand’s government would lend a half-billion dollars to KiwiRail. This money would be used to manufacture up to 114 railcars by a 2013 deadline. Inevitably, some of the initial loan would be relocated to locations overseas. However, despite the importation of specific components, it is estimated that 260 million dollars would be absorbed directly into the country’s economy.
http://www.nzherald.co.nz/economy/news/article.cfm?c_id=34&objectid=10642374