Parliament

Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search

 

Rail buy back marks new sustainable transport era

Rt Hon Helen Clark
Prime Minister of New Zealand
Hon Dr Michael Cullen
Minister of Finance


5 May 2008 Media Statement

Embargoed until 10am

Rail buy back marks new sustainable era for transport

The Labour-led government has reached agreement with Toll Holdings Ltd for the purchase of Toll New Zealand’s rail and ferry business, Prime Minister Helen Clark and Finance Minister Michael Cullen announced today.

“Modernising our transport sector is central to transforming our economy and making it truly sustainable,” Helen Clark said.

“With rising fuel prices and growing awareness about the challenge of global climate change, many nations are looking to rail as a central part of 21st century economic infrastructure.

“A modern rail system can lessen the carbon footprint of our wider transportation network, taking pressure off our roads and allowing our trucking and shipping businesses to operate more efficiently. Combined with an increase of almost 1,100 per cent in public transport investment since 1999, today’s announcement marks a major step forward in building a truly sustainable transport network.”

The government will pay a purchase price of $665 million for the rail and ferry business with settlement on 30 June 2008.

“The selling off our public rail system in the early 1990s and the running down of the asset afterward has been a painful lesson for New Zealand,” Dr Cullen said.

“During the negotiations with Toll it transpired that buying the rail operating business including the ferries was the best way to increase investment in the industry and enable it to be more responsive to the needs of New Zealand customers.



“Running a commercially viable business that was able to contribute to the economic and environmental development of New Zealand was proving extremely difficult without government support.

“The government will now avoid paying subsidies to third parties and we also avoid the on-going disputes over the implementation of the National Rail Access Agreement that had the potential to destroy value in the business and erode the morale of the people who work in it.

“We acknowledge the important role that Toll has played in the industry by increasing the volumes carried by rail and improvements that they have made to the operation of the terminals. We look forward to continuing to work with them in their ongoing freight forwarding business.

“In the months ahead, I will explore options for significant investments in new, modern rolling stock. These will be presented to Cabinet and full details will be made available as soon as possible.”

Dr Cullen will hold a media briefing at 10am. Further details including background material will be provided later in the day.


ENDS

© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

SCOOP COVERAGE: CHRISTCHURCH MOSQUES TERROR ATTACK


Gordon Campbell: On Reforming Parliament’s Toxic Culture

It would be nice to think Parliament was a forum where rationality ruled – and where policies are raised and evaluated in terms of their contribution to the greater good. Obviously, it isn’t like that... More>>

Historic Assualt Allegation: Parliamentary Service Staff Member Stood Down
Rt Hon Trevor Mallard said today: “I do not want to cut across any employment or possible police investigations, but I am satisfied that the Parliamentary Service has removed a threat to the safety of women working in the Parliamentary complex." More>>


 

PM And FinMin's Post-Cab: Mental Health Inquiry And Budget Responsibility

Prime Minister Jacinda Ardern was joined by Minister of Finance Grant Robertson for the last post-cabinet press conference before Thursday's budget. The Government will also announce its delayed response to the mental health inquiry this week. More>>

Budget: New Service For Young People Leaving Care

The Wellbeing Budget contains funding to build a new nation-wide Transition Support Service which is expected to help around 3,000 young people over the next four years after it starts on July 1. More>>

ALSO:

Children's Commissioner: Too Many Youths On Remand In Secure Facilities

It is unacceptable that young people are being remanded to youth detention facilities on charges that have not been proven, Children's Commissioner Andrew Becroft says. More>>

ALSO:

Media Fund: New Alliance For Local Democracy Reporting

The pilot will see eight journalists recruited to provide local democracy news to a wide array of media. Funding will come from the RNZ /NZ On Air Innovation Fund, a one-off $6m fund announced last year. More>>

Gordon Campbell: On Coal’s Negative Message To The School Protest

As schoolkids around the world commited to another round of protest action against climate change, the re-election of (a) the Morrison government in Australia and (b) the Modi government in India have been a kick in the teeth for future generations. More>>

ALSO:

Fatal 2018 Crash: Police Officer Should Not Have Engaged In Pursuit

The Independent Police Conduct Authority has found that a Police officer should not have tried to stop or pursue a car thought to contain young people in Palmerston North on 28 May 2018. More>>

ALSO:

New Poverty Targets: Goals Overlook 174000 Children In Worst Poverty

Child Poverty Action Group is pleased to see the Government set ambitious 10-year targets for child poverty reduction, but we are disappointed not to see a target set for improving thousands of young lives where the worst of poverty is found. More>>

ALSO:

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

InfoPages News Channels