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

 

Inequality: Top 10% Of Housholds Have Half Of Total Net Worth

The average New Zealand household was worth $289,000 in the year to June 2015, Statistics New Zealand said today. However wealth was not evenly distributed, with the top 10 percent accounting for around half of total wealth. In contrast, the bottom 40 percent held 3 percent of total wealth. More>>

ALSO:

What Winter? Temperature Records Set For June 20-22

The days around the winter soltice produced a number of notably warm tempertaures. More>>

Conservation Deal: New Kākāpō Recovery Partnership Welcomed

Conservation Minister Maggie Barry says the new kakapo recovery partnership between DOC and Meridian Energy is great news for efforts to save one of New Zealand’s most beloved birds. More>>

ALSO:

Tech Sector Report: Joyce Warns Asian Tech Investors View NZ As Hobbits And Food

Speaking in Wellington at the launch of a report showcasing the value of the technology sector to the New Zealand economy, Joyce said more had to be done to tell the country's technology stories overseas. More>>

ALSO:

Mediaglommeration: APN Gets OIO Approval For Demerger Plan

APN News & Media has received Overseas Investment Office approval for its plan to split out its NZME unit ahead of a potential merger with rival Fairfax Media's New Zealand operations. More>>

New Paper: Ninety-Day Trial Period Has No Impact On Firms' Hiring

The introduction of a 90-day trial period has had no impact on hiring by New Zealand companies although they are now in widespread use, according to researchers at Motu Economic and Public Policy Research. More>>

ALSO:

Corrections: Serco Exits Equity Stake, Remains As Operator

Serco has sold its equity stake in the company that holds the contract to design, build and run Wiri Prison in South Auckland but continues as sub-contractor to operate the facility. More>>

GDP: NZ Economy Grows Faster-Than-Forecast 0.7%

New Zealand's economy grew at a faster pace than expected in the first quarter of 2016 as construction expanded at the quickest rate in two years. The kiwi dollar jumped after the data was released. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news