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Tranz Rail: Tracks good, monopoly bad

Dunne on Tranz Rail: Tracks good, monopoly bad

United Future leader Peter Dunne today supported the Government decision to buy back the New Zealand rail track network.

"We welcome that and have been calling for such a move for some time now," Mr Dunne said.

However, he voiced concern that the deal could also leave Tranz Rail with an effective monopoly for the next 67 years.

"And that is not what we want," he said.

"There are still far too many unresolved questions here, prime among them the monopoly factor and the total uncertainty over urban rail services, such as for Wellington.

"It seems apparent that the Government has been prepared to go too far in what effectively appears to be a bail-out.

"While it is important that the country's rail future be secured, United Future does not support ransoming the future of rail commuters and freight-users for generations to come to one company to achieve that," Mr Dunne said.

He said the deal's 'use it or lose it' provisions requiring Tranz Rail to carry tonnage equivalent to 60 percent of that carried this financial year does not create sufficient incentive for the increase in rail services that people will demand.

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