Instyle Contract Textiles says it put in a bid to supply the upholstery fabric for the project which will involve manufacturing and maintaining more than 600 carriages for the NSW rail network.

While no fabric had been ordered as yet or upholsterer appointed, Rail Corp had specified it wanted a moquette fabric (a velvet type fabric) used.

Instyle managing director Michael Fitzsimons claimed the Australian-made fabric it proposed would provide savings of around $500,000 over the moquette and would help protect jobs in the farming and textile manufacturing industries in Australia.

“This is a disappointing result as it is a missed opportunity to support Australia's woolgrowers and textile manufacturing sector...it does not make sense," Mr Fitzsimons said.

The wool required for this project is in the tens of thousands of kilograms.

Instyle is already supplying upholstery fabric for CityRail's Millenium trains - new electric trains operating in Sydney and across Australia since 2002.

He said Instyle’s fabric is manufactured from wool sourced from farms that practise holistic farming methods and is manufactured to strict environmental guidelines.

The Australian made fabric is also “half the weight” of imported moquette fabric and therefore less expensive to carry around the network resulting in less greenhouse gas emissions.

“The imported fabric does not offer the same environmental benefits as the Australian manufactured fabric,” he said.

Mr Fitzsimons said the rail upgrade was one of the largest infrastructure projects undertaken in Australia.

“In this economic climate, particularly in NSW, a contract of this significant size will certainly assist in the retention of jobs in NSW particularly in the struggling farming and textile manufacturing sectors,” Mr Fitzsimons said.

“I acknowledge that the decision was not made by politicians, but they have the power to reverse it.”

The NSW Minister for Transport, David Campbell did not return Rural Press calls this week.

There is no moquette production in Australia.