Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Rail network price critical


Rail network price critical

Any decision to re-nationalise the rail network must be treated with great care, warns the Employers & Manufacturers (Northern).

"Government or private investors have to make their investment decisions based on supply and demand, and economic pricing, or ignore market reality," said Alasdair Thompson, EMA's chief executive.

"The result will be a cost to the taxpayer one way or another.

"If rail cannot survive without taxpayer support, the question has to be asked: 'Is rail the right solution?' For some purposes it may well be, for example, to get logs and other bulk goods to port.

"However, roads though largely publicly owned*, have a wide variety of private users with road transport companies operating in competition on them. Many more roads could be built under public/private partnerships as toll roads.

"In theory the same principle could apply on publicly owned rail networks.

"The question is, whether there are competitors who would pay an economic price to access the rail network irrespective of the network being publicly or privately owned.

"If the unsubsidised price of access is low enough, and the network can be used for a range of transport modes, the answer may well be affirmative.

"Everyone agrees if private investors make a mistake they have to bear the cost themselves. But when government makes investment mistakes, taxpayers meet the bill.

"Unfortunately experience shows government spending other people's money means it generally has a higher propensity to make mistakes. Hence the degree of care needed in considering whether the rail network might be re-nationalised."


© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Onetai Station: Overseas Investment Office Puts Ceol & Muir On Notice

The Overseas Investment Office (OIO) has issued a formal warning to Ceol & Muir and its owners, Argentinian brothers Rafael and Federico Grozovsky, for failing to provide complete and accurate information when they applied to buy Onetai Station in 2013. More>>

ALSO:

Tomorrow, The UN: Feds President Takes Reins At World Farming Body

Federated Farmers president Dr William Rolleston has been appointed acting president of the World Farmers’ Organisation (WFO) at a meeting in Geneva overnight. More>>

ALSO:

I Sing The Highway Electric: Charge Net NZ To Connect New Zealand

BMW is turning Middle Earth electric after today announcing a substantial contribution to the charging network Charge Net NZ. This landmark partnership will enable Kiwis to drive their electric vehicles (EVs) right across New Zealand through the installation of a fast charging highway stretching from Kaitaia to Invercargill. More>>

ALSO:

Watch This Space: Mahia Rocket Lab Launch Site Officially Opened

Economic Development Minster Steven Joyce today opened New Zealand’s first orbital launch site, Rocket Lab Launch Complex 1, on the Mahia Peninsula on the North Island’s east coast. More>>

Earlier:

Marketing Rocks!
Ig Nobel Award Winners Assess The Personality Of Rocks

A Massey University marketing lecturer has received the 2016 Ig Nobel Prize for economics for a research project that asked university students to describe the “brand personalities” of three rocks. More>>

ALSO:

Nurofen Promotion: Reckitt Benckiser To Plead Guilty To Misleading Ads

Reckitt Benckiser (New Zealand) intends to plead guilty to charges of misleading consumers over the way it promoted a range of Nurofen products, the Commerce Commission says. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news