Hon Dr Michael Cullen
Minister of Finance

Wednesday 24 September 2008 Media Statement

Next step in integrated rail business

The Cabinet has confirmed the final arrangements for the rail industry in New Zealand which will take effect from 1 October, Finance Minister Michael Cullen said today.

The current members of the NZ Railways Corporation Board, led by Cam Moore and including Linda Constable, Dr Clive Matthewson, Mike Williams, Lex Henry and Jon Mayson, have resigned with effect from 30 September. They will be replaced by a board led by the Rt. Hon Jim Bolger from 1 October, 2008.

"Ministers wish to thank the retiring members who were brought together to run a new business in September 2004. They inherited a rundown asset and have commissioned a large rebuilding programme which is delivering improvements to important portions of the network and upgrades to the metros of Wellington and Auckland," Dr Cullen said.

"With the purchase of the rail and ferry business of Toll NZ, the direction and purpose of the Crown’s ownership of rail has changed and it is the view of Cabinet that a new board should lead rail into the next phase of development," Dr Cullen said.

From October 1, the New Zealand Railways Corporation will be the single entity responsible for both rail and ferry services and the rail infrastructure. It will purchase KiwiRail Holdings.

Under the new structure, KiwiRail and ONTRACK will be separate operating units reporting to the New Zealand Railways Corporation Board chaired by Jim Bolger. The new Board includes Brian Corban, Mark Franklin, Ross Wilson, Ross Martin, Bryan Jackson and Linda Constable.

The government will next week announce the first tranche of new capital agreed to by the Cabinet for the integrated rail business's next phase of upgrades and expansion.

ENDS

© Scoop Media