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

 


More outages will follow cuts to KiwiRail maintenance

November 16, 2012

More outages will follow cuts to KiwiRail maintenance

The use of outside contractors will grow and outages like that experienced in Auckland this week will increase as a result of cuts to KiwiRail maintenance capacity, the rail union warns.

Earlier this year KiwiRail announced plans to cut $200 million and 158 jobs from its Infrastructure and Engineering division. Its own planning documents admit disruption will grow and performance will drop as result.

RMTU Acting General Secretary Todd Valster said that the increased use of contractors would see more outages like that experienced by Auckland commuters this week, and put safety at risk for rail operators and the public.

“It was a huge mistake to contract out jobs and the wealth of experience in KiwiRail’s Infrastructure and Engineering division,” he said.

“Customers and staff will pay the true cost of these cuts, as contractors increasingly carry out essential maintenance work, because KiwiRail is cutting its own capacity back too much.”

“The 2013-2015 Business Plan, initially leaked and then released, noted that the “asset will decline, disruption will grow, asset failure risk will grow” as a result of its cut backs.”

“Many will be familiar with 2001 UK film The Navigators about the privatisation of rail maintenance and the safety chaos that ensued.”

“New Zealanders would be wise the get the film out from their local video store and remind themselves of both the risks and false economies of contracted-out maintenance work, and support rail workers’ concerns about this happening in New Zealand,” Todd Valster said.

Excerpt from KiwiRail Infrastructure and Engineering Business Plan 2013-2015:

“At best the customer service levels in FY13 will be around but no better than FY12 levels in some line segments. The network will experience falling performance and carry a higher disruption-risk profile. This risk will be managed to limit the impact as much as is practicable on premier corridors.

In FY14 – FY15 the asset will decline, disruption will grow, asset failure risk will grow and the legacy bow wave will get bigger. Even when expenditure gets back to current levels, it will take time to pull back from the decline and regain an improving performance trend to underpin increasing service reliability expectations.”

ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Maritime: Navigation Safety Review Raises Big Issues For The Govt

Shipping Federation: "The reports makes it clear that the ratification of the Maritime Labour convention (MLC) is long overdue. Only when the MLC is ratified will Maritime NZ be able to inspect and enforce the labour conditions on international ships visiting our ports." More>>

ALSO:

100 Years After Einstein Prediction: Gravitational Waves Found

For the first time, scientists have observed ripples in the fabric of spacetime called gravitational waves, arriving at the earth from a cataclysmic event in the distant universe. This confirms a major prediction of Albert Einstein’s 1915 general theory of relativity and opens an unprecedented new window onto the cosmos. More>>

ALSO:

Farming: Alliance Plans To Start Docking Farmer Payments

Alliance Group, New Zealand's second-largest meat cooperative, plans to start withholding some stock payments to its farmers from next week to bolster its balance sheet and force suppliers to meet their share requirements. More>>

ALSO:

Gambling: SkyCity First Half Profit Rises 30%, Helped By High Rollers

SkyCity anticipates the Auckland business will benefit from government gaming concessions which were triggered on Nov. 11 in recognition of SkyCity’s $470 million Convention Centre development. Morrison said the concessions would allow the Auckland business to lift its activity during peak period, noting it had a record revenue week over the Christmas and New Year period. More>>

ALSO:

Money For Light: Kiwi Scientists Secure Preferential Access To Synchrotron

Science and Innovation Minister Steven Joyce today announced a three-year investment of $2.8 million in the Australian Synchrotron, the largest piece of scientific infrastructure in the Southern Hemisphere, to secure preferential access for Kiwi scientists. More>>

Telco Industry Report: Investment Hits $1.7 Bln A Year

Investment in the telecommunications sector is $1.7 billion a year, proportionately one of the highest levels in the OECD, according to a report released today on the status of the New Zealand sector. More>>

ALSO:

PGPs: New Programme Sets Sights On Strong Wool

A new collaboration between The New Zealand Merino Company (NZM) and the Ministry for Primary Industries (MPI), announced today, aims to deliver premiums for New Zealand's strong wool sector... More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news