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

 


Lot at stake for taxpayers and road users

Lot at stake for taxpayers and road users over road/rail freight options

Business and taxpayers will be concerned about the impact of Toll switching freight from rail to road in the event Ontrack and Toll don't reach agreement over the proposed $60m rail access fee, the Employers and Manufacturers Association (Northern) says.

"Any agreement over the cost of rail access has to be commercially sound," said Alasdair Thompson, EMA's chief executive.

"However there are broader considerations since a switch from rail to road would shift both income and costs to the road owner, Transit New Zealand with a big impact on road users.

"Ontrack would lose a big chunk of revenue, and with more trucks on the roads, revenues from road users would increase but so too will the costs of road maintenance and capital to increase their capacity.

"The government on behalf of taxpayers owns both state highways and the rail network managed by Ontrack; it would be financially affected by the revenue loss to Ontrack with an increase of both revenue and costs to Transit.

"Clearly Toll would not have made its views public were it not seriously looking at switching freight from rail to road on the basis that for them and their customers it would be cheaper to do that than pay the level of access fees proposed.

"Putting rail freight onto roads could be costly for business and consumers if it led to higher freight costs; the ministers of transport and finance on behalf of taxpayers have a lot at stake."

ends

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

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:

Half A Billion Accounts, Including Xtra: Yahoo Confirms Huge Data Breach

The account information may have included names, email addresses, telephone numbers, dates of birth, hashed passwords (the vast majority with bcrypt) and, in some cases, encrypted or unencrypted security questions and answers. More>>

ALSO:

Rural Branches: Westpac To Close 19 Branches, ANZ Looks At 7

Westpac confirms it will close nineteen branches across the country; ANZ closes its Ngaruawahia branch and is consulting on plans to close six more branches; The bank workers union says many of its members are nervous about their futures and asking ... More>>

Interest Rates: RBNZ's Wheeler Keeps OCR At 2%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2 percent and said more easing will be needed to get inflation back within the target band. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news