Response to Minister of Transport’s comments on rail access charges

Minister of Transport Hon Steven Joyce says the Auckland region will need to “stand up and meet the costs of using the rail network for passenger operations”. ARC Chairman Mike Lee says in case the Minister hadn’t noticed, in terms of investing in rail transport, the Auckland region stood up many years ago, and for a lot of that time stood alone.

“In terms of fighting for a first world rail infrastructure, Auckland is still standing and we are still fighting.

“The Minister needs to be told that over the five years to 2006, some $363 million was invested in upgrading the Auckland rail network.

“Of this, approximately $288 million or 80% was provided by the Auckland region and its ratepayers. This funding provided for the construction of Britomart, upgrading of stations, double-tracking, and the purchase and refurbishment of trains.

“The ARC initiated the first stage of double tracking the Western Line, funded by an Infrastructure Auckland grant, because the Government refused to do so.

“Between 2006 and 2009, the ARC funded the costs of purchasing and refurbishing trains and upgrading stations, and received no Government subsidy for this at all.

“The ARC also funded the costs needed to get the electrification project off the ground and 40% of the costs of passenger rail services.

“In 2009/10, the ARC has provided $25 million in operating funding to ARTA for rail passenger services, and $66 million for investment in refurbished trains and upgraded rail stations.

“The Minister states that neither Auckland nor Wellington are paying the actual amounts required to renew and maintain their share of the network.

“In this regard, he may well be true,” says Mr Lee. “But again he seems to overlook that since 2003, the ARC and ARTA have been paying more than $5 million a year in access charges to use the Auckland rail network.”

Mr Lee says the ARC is already working with the Ministry of Transport on rail access charges.

“The key issues will be ensuring robust and reliable costs, and a fair allocation of those costs between passenger and freight. But expecting commuter operations to make a profit is unrealistic.

“Passenger rail operations are simply not commercially profitable and will always need public subsidy.

“New Zealand is integrating itself into the first world economy. All modern, first world economies are now investing heavily in rail infrastructure – the operations of which are subsidised by the state sector.

“National Party politicians like Steven Joyce need to shift out of their quaint rural 1950s mind-set and move into the 21st century.

“If New Zealand is to become a first world economy and society, we need first world, rail rapid transit in our major cities.”

ENDS

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