It's Time Kiwirail Stopped Hiding Information From Its Bankers

29 NOVEMBER 2016
FOR IMMEDIATE RELEASE

The Taxpayers’ Union is calling on KiwiRail to disclose the extent of its insurance and expected cost of damage to the South Island rail network from the Kaikoura earthquake.

Taxpayers’ Union Executive Director, Jordan Williams, says: “We’ve been asking KiwiRail for confirmation that it has no insurance cover for this type of event. Incredibly, KiwiRail’s spin doctors refused to answer citing commercial sensitivity. When we digged further we found that the only commercial sensitively is in relation to insurance renewal — nothing to do with the events in Kaikoura.”

“KiwiRail most recent annual report lists only $13.5 million expensed on ‘Incidents and insurance’. If KiwiRail is trying to pretend that buys any protection for its assets — disclosed as having a $17b replacement value — for $13.5 million, it must think the public are mugs."

"It appears that behind the scenes KiwiRail is desperately lobbying the Government for another billion dollar bailout. It wants to stitch up a deal before the full costs of rebuilding hundreds of kilometers of coastal line becomes clear. It knows that previous analysis by the Treasury has questioned the viability of most of the South Island rail network, even prior to the Quake.”

"Cool heads must prevail. Rebuilding the rail needs to be weighed against a higher capacity, or more secure, road corridor inland from the East Coast. After all, with more than $3.7 billion spent on bailing out KiwiRail since it was renationalised in 2008, it’s New Zealand taxpayers who are the bankers here. And as taxpayers we deserve some answers from KiwiRail."

The correspondence between KiwiRail's Communications Co-ordinator, Louise Jago, and the Taxpayers’ Union is available on request.

ENDS

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