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Call in Some Experts to Save Kiwirail

29 MAY 2015

Call in Some Experts to Save Kiwirail

The government must urgently appoint some shipping and transport business talent to KiwiRail to avoid the further waste of hundreds of millions of dollars of taxpayers’ money on a failing rail and ferry network, says New Zealand First Leader and Member for Northland Rt Hon Winston Peters.

The Budget showed that KiwiRail will receive $210 million in 2015/16 and a further $190m as a pre-commitment against Budget 2016.

Mr Peters says since the 2010 Budget KiwiRail has received $1.43 billion in capital injections from taxpayers.

“In return taxpayers have received regional rail link closures, downgrades and a Cook Strait ferry service plagued with self-inflicted problems.

“The government says the funding will allow KiwiRail to deliver services and maintain the national rail network to a safe and reliable standard but appears to have not told KiwiRail about this.”

Mr Peters says the biggest mistake has been the expensive and unwise plan to lengthen Aratere, which now cannot maintain a shipping schedule and has suffered numerous problems.

“Aratere will be the only Cook Strait ferry capable of carrying rail wagons when Arahura is withdrawn from service and this does not bode well for the future of rail freight across Cook Strait.

“The so-called iron bridge between the North and South Islands has been an integral part of our national rail system and this is now at serious risk.
“We understand contingency plans are already being prepared to deal with the situation.”

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Meanwhile, Mr Peters says millions of dollars is being poured into the rust bucket Stena Alegra.

“We have been reliably informed that a large area of decking has to be replaced, the freight doors have rusted closed and numerous alterations have to be made for passenger access and fire safety systems.

“A National government has already wrecked the railway system once and it must not happen again,” says Mr Peters.

ENDS

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