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


Business “appalled” with government’s treatment of KiwiRail

Business “appalled” with government’s treatment of KiwiRail

The rail workers’ union is backing calls from Mainfreight chairman Bruce Plested for “more positive support for long-term rail infrastructure”, says Rail and Maritime Transport Union (RMTU) General Secretary Wayne Butson.

“Earlier this month Treasury documents revealed that the government had received advice to downsize or shut down KiwiRail.”

“Yet Mr Plested’s comments, delivered at the annual Mainfreight shareholders meeting, indicate that there’s business appetite for greater investment in rail. The government advice to downsize or shut down wasn’t based on business confidence or empirical evidence, it was all ideological,” says Butson.

“KiwiRail is the victim of years of systematic underinvestment. After the company was privatised it was stripped by corporate raiders. But even after the public took back control, successive governments never formulated a long-term plan for the state company.”

“Rail is an important part of the national infrastructure and it needs government support. KiwiRail is currently considering whether to reinvest in an electric fleet or downgrade to a cheaper and dirtier diesel fleet. If there was a long-term plan in place then it would be an easy decision to reinvest in the electric fleet,” says Butson.

“But continual pressure from government to minimise costs and maximise returns means that the diesel fleet looks attractive because it’s cheaper in the short term. The government needs to get its act together and formulate a long-term plan.”


© Scoop Media

Business Headlines | Sci-Tech Headlines


Fuel Leak: Refinery Prepares To Repair Damaged Pipeline

Refining NZ has confirmed that it is to start repairs on a section of its multi-product fuel pipeline which was shut down following a jet fuel leak last Thursday. More>>uption.htm">More>>


StatsNZ: Economy Grows 0.8% In June Quarter

“Strong export and domestic demand underpinned growth this quarter,” national accounts senior manager Gary Dunnet said. “Demand for exports has resulted in strong production growth in manufacturing and service industries.” More>>


Stats NZ: Annual Net Migration Remains High

Annual net migration was 72,100 in the August 2017 year... Migrant arrivals reached 132,200, a new annual record, and migrant departures were 60,100 in the year ended August 2017. More>>


Expert Reaction: Cassini's Grand Saturn Finale

After a 20 year mission, NASA's spacecraft Cassini will meet its demise this week by plunging into Saturn's atmosphere and burning up. More>>


Jurisdiction: Court Rejects Cathay Unit's Retirement Age Of 55 For Pilots

The Supreme Court has backed two Auckland-based Cathay Pacific pilots who claimed local law meant they couldn't be forced to retire at 55. More>>


Supreme Court: AFFCO Loses Lockout Appeal

The essential question in the appeal was whether those who presented themselves for work at the beginning of the 2015/2016 season were at that time “employees” for the purposes of the lockout provision... This Court has unanimously dismissed the appeal. More>>