Local Government New Zealand Welcomes Government’s Proposal on TranzRail

Local Government New Zealand welcomes the Government’s proposal regarding TranzRail announced last Friday, President Basil Morrison said today.

“Local government has urged for some time the return to public ownership of the rail corridor, track and infrastructure in order to ensure adequate investment and to facilitate a level playing field between road and rail.

“The rail network is a strategically important national asset that is vital to supporting New Zealand’s economy, particularly the agriculture and forestry sectors. For regions like Southland, Otago, Gisborne and Northland, the rail network is hugely important.”

Mr Morrison says the proposal also has the potential to ensure the sustainability of urban rail which is vital if New Zealand’s urban centers are to function efficiently and to also support more effective regional land transport strategies that better integrates both road and rail networks.

The Government’s proposed 35% ownership of the company, and its proposal to establish a Crown Entity to manage the rail network, provides a framework that has the potential to create a sustainable rail network that will support New Zealand’s economic growth well into the future.

“If our communities are to prosper, we need to be able to move produce from farm gate, or forest, to port. Rail is a key part of the transport network for doing just that and safeguarding the rail network is in all our interests.”

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