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

 

Govt warns KiwiRail annual support won't last

Govt warns KiwiRail that hundreds of millions in annual support can’t last

By Pattrick Smellie

May 21 (BusinessDesk) - State-owned rail operator KiwiRail takes the lion’ share of $249 million additional transport funding over the next four years, with an extra $209.8 million available for the year ahead and $190 million in the 2016/17 fiscal year.

But the extra funds come with a warning.

“KiwiRail must continue to drive significant efficiency and productivity improvements to reduce an ongoing level of Crown funding required,” said Transport Minister Simon Bridges said in a statement.

Finance Minister Bill English says in his budget speech that ongoing support at recent levels for KiwiRail is “unsustainable”, with funding coming from the Future Investment Fund created by the partial sale of government electricity companies and a reduced holding in Air New Zealand.

“KiwiRail is integral to New Zealand’s land transport system,” said Bridges. “This funding will allow it to deliver services and maintain the national network to a safe and reliable standard.”

Once next year’s allocation is spent, total capital injections to KiwiRail since the 2010 Budget will have totalled $1.43 billion.

Meanwhile, free travel for pensioners under the SuperGold Card will expand, with funding rising by $10.2 million in 2015/16 to total $28.1 million.

Briefing journalists, English said the government had hoped before now not to be giving such high levels of support to KiwiRail.

(BusinessDesk)

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Voluntary Administration: Renaissance Brewing Up For Sale

Renaissance Brewing, the first local company to raise capital through equity crowdfunding, is up for sale after cash flow woes and product management issues led to the appointment of voluntary administrators. More>>

Elsewhere:

Approval: Northern Corridor Decision Released

The approval gives the green light to construction of the last link of Auckland’s Western Ring Route, providing an alternative route from South Auckland to the North Shore. More>>

ALSO:

Media Mega Merger: Full Steam Ahead For Appeal

New Zealand's two largest news publishers have confirmed they are committed to pursuing their appeal against the Commerce Commission's rejection of the proposal to merge their operations. More>>

Crown Accounts: $4.1 Billion Surplus

The New Zealand Government has achieved its third fiscal surplus in a row with the Crown accounts for the year ended 30 June 2017 showing an OBEGAL surplus of $4.1 billion, $2.2 billion stronger than last year, Finance Minister Steven Joyce says. More>>

ALSO:

Mycoplasma Bovis: One New Property Tests Positive

The newly identified property... was already under a Restricted Place notice under the Biosecurity Act. More>>

Accounting Scandal: Suspension Of Fuji Xerox From All-Of-Government Contract

General Manager of New Zealand Government Procurement John Ivil says, “FXNZ has been formally suspended from the Print Technology and Associated Services (PTAS) contract and terminated from the Office Supplies contract.” More>>