Slavery concerns over NSW electric bus imports to be investigated

The NSW antislavery commissioner will commence an immediate investigation after concerns were raised that new electric buses commissioned by the NSW government may have links to slavery.

The NSW antislavery commissioner will commence an immediate investigation after concerns were raised that new electric buses commissioned by the Minns government may have links to slavery and child labour.

As part of the investigation, commissioner James Cockayne will ask Transport for NSW to provide information about what steps were taken when assessing electric vehicle providers, to ensure there was no use of forced labour in the supply chain.

The investigation comes after The Daily Telegraph revealed shadow treasurer Damien Tudehope had written to the Commissioner citing grave concerns that TfNSW failed in its “due diligence” to assess the risks of modern slavery prior to approving two electric bus suppliers Foton Mobility Distribution (FMD) and VDI-Yutong in March last year.

A bus for Transport for NSW’s existing fleet. Picture: NewsWire / Nikki Short

The two companies, while Australian-owned, are contracted to provide nearly 200 Chinese-made electric buses to the state. These buses will arrive in “Ikea-style” flatpack form and be bolted together by local workers.

As a result concerns have arisen over the use of Chinese Communist Party-linked battery company, Contemporary Amperex Technology Limited (CATL), which is supplying the EV batteries for both FMD and VDI-Yutong. Multiple reports have flagged concerns over the high risk of Uyghur slave labour in the production of the batteries, as well as concerns over forced labour used to mine its components in the Democratic Republic of Congo.

In a letter sent to Mr Tudehope on Monday, the NSW antislavery commissioner said he would “seek information that will clarify whether these government agencies have been taking reasonable steps to address” the risks of modern slavery in their procurement of electric vehicles and related infrastructure.

NSW Antislavery Commissioner Dr James Cockayne. Picture: Danielle Smith

Under the Modern Slavery Act, the commissioner is unable to investigate individual cases where forced labour is believed to exist in the supply chain but can incorporate those instances into a broader investigation of the procurement process.

Mr Cockayne wrote that he will report his findings to the Attorney-General, who will then present them to parliament.

The letter also revealed the commissioner already had concerns about the “high inherent risk” of the use of child and forced labour in the procurement of electric vehicles, which he raised with multiple government agencies in January.

Shadow Minister Treasurer Damien Tudehope. Picture: NewsWire / Christian Gilles

In response, the commissioner published new guidelines as to the “reasonable steps” for government departments to take to avoid procuring products associated with slave labour.

“There are child and forced labour risks in multiple components of vehicle manufacturing,” he wrote.

“Notably, these include risks of child and forced labour in the production of cobalt used in producing lithium-ion batteries used in electric vehicles,” Mr Cockayne wrote in the letter.

A visitor looks at a Shenxing Plus battery pack for electric vehicles in the showroom at the headquarters of Chinese EV battery maker CATL in southeast China’s Fujian province. Picture: Greg Baker / AFP

A spokesperson for Transport for NSW said the department takes its obligations under modern slavery laws “very seriously” and would continue to engage with the antislavery commissioner on the issue.

“We have a range of measures in place, developed in line with the Anti-Slavery Commissioner’s guidance, to ensure we’re taking reasonable steps to avoid slavery in our supply chain,” the spokesperson said.

Shadow treasurer Damien Tudehope said concerns that the creation of the state’s new electric bus fleet could be connected “to children mining cobalt in the Congo and Uyghur slaves making batteries in Chinese factories before being assembled here in NSW” was “a matter for shame and vigorous action”.

A spokesperson for FMD said the company had complied with all NSW government procurement regulations in relation to its supply chain. VDI-Yutong could not provide comment before deadline.

Originally published as Slavery concerns over NSW electric bus imports to be investigated