Don't Throw Good Money After Bad on Gisborne Line

The Taxpayers’ Union is slamming the Hawke’s Bay Regional Council for not ruling out more money to prop up the Napier-Gisborne railway line. Responding to today's report in the Hawke's Bay Today, Taxpayers’ Union Executive Director, Jordan Williams, says:

“The Government has piled billions into rail over the last decade, and it can't even get the national network to breakeven. We are staggered that the Regional Council would risk even more money trying to breathe life into this black hole.”

Since Helen Clark’s Government renationalised rail in 2008, the total cost of subsidies and write-downs of KiwiRail has totalled $12.8 billion.

"12.8 billion is an average of $2,863 for every New Zealander," says Mr Williams. "That is the equivalent of a return trip to London for every Kiwi, wasted on rail."

“We all love trains, but the idea of rebuilding a line for one daily service with five carriages makes no sense.”

"The Regional Council would have more luck pushing water uphill with a rake, than getting the Gisborne line to cover its costs. The pain on taxpayers is enough, don't let ratepayers suffer the same fate."

More information about the cost of rail to taxpayers can be found in the New Zealand Taxpayers’ Union report on corporate welfare, Monopoly Money.

ENDS

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