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Govt Should Have All Options on Table to Deal with Kiwifail

Govt Should Have All Options on the Table to Deal with Kiwifail

27 APRIL 2016
FOR IMMEDIATE RELEASE

The Taxpayers’ Union says that Minister for State Owned Enterprises, Todd McClay, is in dream land telling Kiwirail not to change its structure but to rely less on taxpayer funded handouts amounting to hundreds of millions per year. Taxpayers’ UnionExecutive Director Jordan Williams says:

“The Minister appears to think that by continuing to keep his head in the sand the problem will go away. Since this Government was elected, the eye watering amounts of taxpayer money shovelled into Kiwirail could have bought every New Zealander a return trip to London. But McClay still won’t turn.”

“At least with NZ Post the Government recognised that the business has had its day. Somehow the romance with Kiwirail continues to capture politicians' imaginations and we are forced to prop up provincial lines which have no hope of covering their costs.”

“When Kiwirail's own management is calling for the Government to stem the bleeding, all options should be on the table. If Kiwirail is worth subsidising, say because of the number of trucks it gets off the road, the Government should know that figure and balance the costs and benefits transparently. Only then can taxpayers really know whether we’re getting any value for money.”

“Why for example does Kiwirail still own the Interislander ferries? Only one of the ships, the smallest, still carries trains, it’s mismanaged, and there are plenty of private operators that would do a better job.”

“This report is effectively the captain saying ‘abandon ship’ but the shareholders saying it’s unsinkable.”

ENDS


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