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Public-private partnerships – a model for future

5 June 2002 Media Statement

Public-private partnerships – a model for the future

Finance Minister Michael Cullen today welcomed the 50/50 joint venture between the Wellington Regional Council and Stagecoach to provide passenger rail services to greater Wellington, Porirua and the Wairarapa.

“The government is promoting the use of public-private partnerships in the transport area and this is a good example of what the model has to offer,” Dr Cullen said.

“The 50/50 partnership brings benefits to both the WRC and Stagecoach while allowing them each to share the financial risk. For Stagecoach it creates a stable, long-term investment opportunity.

“For the WRC, it gives access to Stagecoach’s rail and business expertise not only in the running of the network but also in the purchase negotiations with Tranz Rail.

“And for the travelling public it will mean a continuing service with improved facilities. There are no losers from this deal, only winners,” Dr Cullen said.

ENDS

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