Debate on Crown Entities, Public Organisations, and State Enterprises — New Zealand Railways Corporation

Thank you for the opportunity to talk in regard to KiwiRail today, and just the importance that that organisation has for the future of this country as we look forward. We are a trading nation and we rely on getting freight to ports quickly, efficiently, and in a timely manner. We also rely on taking freight from ports to New Zealand’s businesses.

💬 Hon Trevor Mallard: What’s the Government doing about the Gisborne line?

The Labour Party wants us to talk about Gisborne. Is the Gisborne line what you want to talk about? Well, we will come to that. But we have to look at the essence of what KiwiRail is there for. It is a major infrastructural asset that we have as a country. This Government has committed to turning KiwiRail round. We have a turn-round plan, which has a distinct Government investment in that organisation, and it is in the best interest of KiwiRail and New Zealand business going forward.

We want KiwiRail to be effective and to have a long-term strategy. To do that, KiwiRail needs to stand on its own two feet. And what KiwiRail has suffered from for many years is political interference telling it how to run its business. KiwiRail has then been required to do things that are not economically in its best interests and cost it money, and therefore it is not competitive. The thing we need to do with KiwiRail is let it be a business. Let it have the freedom to go out there and compete. Let it go out there and make decisions on where it wants to invest its money, and not be told by people in this House how it should run its business just for purely political motives. The Labour Party bought KiwiRail back to do that. We have taken KiwiRail on and will make it run as a real business, and that is the defining difference between the two parties.

💬 Sue Moroney: But no passenger train from Hamilton to Auckland, right, David.

You want to talk about the passenger train from Hamilton to Auckland. That is what Sue Moroney wants to do. This is Sue Moroney’s election pledge for the last two elections, which has not got off the ground. It cost $15,000 a year per passenger on that train. Sue Moroney wants to give 95 people a subsidy of $15,000 each for a year, do you not, Sue?

The CHAIRPERSON (Lindsay Tisch): Order!

That is what it costs. Those are the numbers. The city council said no. The regional council said no. But yet Sue Moroney went to the electorate year after year seeking that train—a train that has not worked in the past. Let us have a look at the trial during the Rugby World Cup. Guess how many people went on that train.

💬 Hon Chester Borrows: Five.

No, it is more than five.

💬 Chris Auchinvole: Six.

Six? It is more than six. It is not many more than six; keep going, guys. There is a potential—

💬 Nikki Kaye: 20.

No, it is less than 20. It was nine. Nine people went on this great train during the world cup to a rugby game, and Sue Moroney said it would be full. That is from the great Labour Party geniuses of economic management who know better than KiwiRail management about how to run their own business. They said: “Let’s have this train. Let’s do it. It will be economical.” And there were nine people on it. It is $15,000, Sue, if you have 95 people. So if you have only nine people on it, how much is that subsidy for that train per year? It is a lot of money. That is what it is, Sue. It is a lot of money.

The CHAIRPERSON (Lindsay Tisch): Order! The member knows that he must use the member’s full name. All right? It has happened twice in this debate. The member knows the consequences of not using the member’s full name or title.

💬 Sue Moroney: And he needs to tell the truth.

The CHAIRPERSON (Lindsay Tisch): The member cannot say that. I ask the member to withdraw and apologise for that comment.

💬 Sue Moroney: I withdraw and apologise. I raise a point of order, Mr Chairperson.

The CHAIRPERSON (Lindsay Tisch): If it is on this matter, the member will be out of order.

💬 Sue Moroney: I do wish to ask the Chair to ask the member to speak to the Crown entity that he is actually supposed to be talking to.

The CHAIRPERSON (Lindsay Tisch): I will decide on that, about relevance. I know the member will come back to it.

Thank you, Mr Chair. KiwiRail is an important part of our infrastructure. It has an opportunity in two areas: freight and passenger transport. Rail works really well when you have a large contingent of freight in one place that wants to go to another place. And it works well when you have a large number of people in one place who want to go to another place. We have to be careful how we invest in KiwiRail to make sure it uses that strategic advantage. For example, Hamilton is a great place for a freight hub for KiwiRail, and we are working closely with Tainui to develop that at Ruakura. That is in the best interest of Tainui, and it is in the best interest of the New Zealand economy, and it will help us to deliver those resources and that infrastructure to our people going forward.

Passenger transport works well in Wellington and Auckland. Wellington is a very good place for passenger transport because it is a straight line; people live in one place and they work in another place, and it is not a great distance. We are investing heavily in the passenger transport network in Wellington. In Auckland it is important as well, because Auckland is our biggest city and we need to develop that infrastructure. We have put a billion or so dollars into the electrification of the Auckland network. That is a huge investment for the Auckland rail system. It is for passenger rail.

Report noted.

Solid Energy New Zealand