Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

KiwiRail Needs To Operate For The Long Term Benefit To The Economy, Not For Short Term Profit


The union representing rail workers says KiwiRail needs to be turned into a ‘public benefit entity’ so it can operate for the greater good of New Zealand.

The Government has recently asked the Treasury and the Ministry of Transport to consider KiwiRail’s “entity form” as the current State-owned Enterprise (SOE) model is not working.

Rail and Maritime Transport Union General Secretary Wayne Butson says SOE legislation requires Kiwirail to have an overriding commercial focus, and this short-term approach undermines any long term strategy for rail as essential infrastructure.

The SOE model works against the retention of services on lines which may be marginal today but may become essential under a new transition industry, he says.

Mr Butson says an example is TranzRail removing the double tracking between Mosgiel and Dunedin, which would have been useful today for moving the Fonterra tonnage from Mosgiel to Port Chalmers, and in pathways for a future that may include regional passenger trains.

He says KiwiRail’s SOE status restricts the ability of any Government, present or future, to give directions to the company which may be of national benefit – an example of which was the Government’s intervention to preserve the electric locomotives on the North Island Main Trunk Line.

Mr Butson says the RMTU also believes the short term incentives programme paid to senior KiwiRail managers is out of control, and a return to oversight of the State Services Commission would rein in this plundering of public money.

“Rail is now seen as an essential element of our logistics and passenger supply chain and is in need of significant investment in our national interest, and so it is only right for it to be returned to being a crown public benefit entity.”

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

TradeMe: Property Prices In Every Region Hit New High For The Very First Time

Property prices experienced their hottest month on record in December, with record highs in every region, according to the latest Trade Me Property Price Index.\ Trade Me Property spokesperson Logan Mudge said the property market ended the year with ... More>>

Motor Industry Association: 2020 New Vehicle Registrations Suffer From Covid-19

Chief Executive David Crawford says that like some other sectors of the New Zealand economy, the new vehicle sector suffered from a case of Covid-19. Confirmed figures for December 2020 show registrations of 8,383 were 25% ... More>>

CTU 2021 Work Life Survey: COVID And Bullying Hit Workplaces Hard, Huge Support For Increased Sick Leave

New data from the CTU’s annual work life survey shows a snapshot of working people’s experiences and outlook heading out of 2020 and into the new year. Concerningly 42% of respondents cite workplace bullying as an issue in their workplace - a number ... More>>

Smelter: Tiwai Deal Gives Time For Managed Transition

Today’s deal between Meridian and Rio Tinto for the Tiwai smelter to remain open another four years provides time for a managed transition for Southland. “The deal provides welcome certainty to the Southland community by protecting jobs and incomes as the region plans for the future. The Government is committed to working on a managed transition with the local community,” Grant Robertson said. More>>

ALSO:

OECD: Area Employment Rate Rose By 1.9 Percentage Points In The Third Quarter Of 2020

OECD area employment rate rose by 1.9 percentage points in the third quarter of 2020, but remained 2.5 percentage points below its pre-pandemic level The OECD area [1] employment rate – the share of the working-age population with jobs – rose ... More>>

Economy: Strong Job Ad Performance In Quarter Four

SEEK Quarterly Employment Report data shows a positive q/q performance with a 19% national growth in jobs advertised during Q4 2020, which includes October, November and December. Comparing quarter 4, 2020, with the same quarter in 2019 shows that job ad volumes are 7% lower...More>>

NIWA: 2020 - NZ’s 7th-warmest Year On Record

The nationwide average temperature for 2020, calculated using stations in NIWA’s seven-station temperature series which began in 1909, was 13.24°C (0.63°C above the 1981–2010 annual average). New Zealand’s hottest year on record remains 2016, when... More>>

Quotable Value New Zealand: Property Market Set To Cool From Sizzling To Warm In 2021

Nostradamus himself could not have predicted the strange series of events that befell our world in 2020 – nor the wild trajectory of New Zealand’s property market, which has gone from “doom and gloom” to “boom and Zoom” in record time. Even ... More>>