The Government’s decision to put money into electric trains is embarrassing and a step back to a by-gone era of politicians meddling in sound business decisions of the Government-owned railway, says the New Zealand Taxpayers’ Union.

Taxpayers’ Union Executive Director Jordan Williams says “KiwiRail’s strong view was that diesel makes much more economic sense than wasting $36 million more of taxpayers’ money on electric trains. Intsead of respecting that independence the politicians are polluting the pond for the sake of a good headline.”

“Good environmental policy should be made objectively, after taking the relavant costs into account: that’s the purpose of the emissions trading scheme. These sorts of ad hoc decisions undermine good environmental and economic policy.”

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