Duncan Helen: Questions for Oral Answer — Questions to Ministers 
Text is incorporated into the Bound Volume 
Duncan Helen: Questions for Oral Answer — Questions to Ministers 
[Sitting date: 10 June 2003. Volume:609;Page:6048. Text is incorporated into the Bound Volume.] 
2.  
HELEN DUNCAN (NZ Labour) 
 to the  
Minister of Transport 
: What steps has the Government taken to protect the rail network of New Zealand and why have such steps been taken? 
Hon PAUL SWAIN (Minister of Transport) 
: 
 Last Friday the Government announced a joint plan for the restructuring and development of the New Zealand rail system. The proposal has real potential to enable rail to move more freight and people reduce heavy truck traffic on roads produce fuel-saving efficiencies and deliver land transport in a way that involves less wear and tear on our environment. It promotes major benefits to New Zealand. 
Helen Duncan 
: What reports has the Minister seen supporting the Government rail deal announced on Friday? 
Hon PAUL SWAIN 
: There have been many supportive comments from a range of sources including the Rail Freight Action Group Local Government New Zealand and the Greater Wellington Regional Council. The deal has the overwhelming support of New Zealanders as was shown in a recent NBR poll. 
Hon Roger Sowry 
: How does he reconcile the Government’s position with the statement made by the Minister of Finance that “Toll Holdings had their chance for a cooperative approach and they essentially told us to go away and get lost.” with the comment made by Toll Holdings managing director Paul Little that “I’d like to think of it perhaps more of an opportunity now for Toll to work more closely with the Government.” and how will these two positions advance the prospect of this deal working? 
Hon PAUL SWAIN 
: Easily because that is what they said. But in the end the Government does not see itself as a long-term holder and will be entering into potential opportunities if this deal is accepted by the shareholders on 11 July. 
Peter Brown 
: Why has the Minister chosen to act now when a few weeks ago he could have bought the whole of Tranz Rail for 30c a share instead of 35 percent at 65c; is it because he has just become aware of the problems with our rail system or is it simply another Government knee-jerk reaction? 
Hon PAUL SWAIN 
: No the Government has been aware of some of the issues around Tranz Rail for some time as the member would also be aware if he reads the newspapers. The reality is that Tranz Rail requested us to be engaged in negotiations in May. That is when the decision started to be made which led to the decision last Friday. The real point is that this was at Tranz Rail’s request and we acted very decisively once the package had been put together. 
Jeanette Fitzsimons 
: Can the Minister confirm that Government ownership of the tracks as advocated by the Greens’ rail package 2 years ago will help achieve integrated land transport and can he comment on how it will assist in retaining the Napier-Gisborne line and advancing a spur line to the new port at Marsden Point? 
Hon PAUL SWAIN 
: Yes I can confirm that and of course the rail network is an important part of the New Zealand transport strategy that the Green Party and the Labour-led Government announced just before Christmas. The reality is that we have not been able to have a strategy without the rail network operating effectively. Of course it now allows us to address the issue of the Napier-Gisborne line and the Marsden spur line as well to take into account the increase in freight that is likely to go along that line. 
Larry Baldock 
: What can the Minister say to those who suggest that Tranz Rail should have been left to go into statutory management or receivership so that the Government could have got the cheapest possible deal and what would have been the economic impact of this on New Zealand’s economy? 
Hon PAUL SWAIN 
: Those who say that do not understand firstly the rail business and secondly that the economic impact of such a situation where freight and people would stop being able to be moved in New Zealand would be incalculable. This is a good deal for New Zealand and I say to the National Party that it should hang its head in shame for the mess it created. 
Hon Richard Prebble 
: How much work did the Government do before it committed the taxpayer to taking protection of the rail network; firstly did it not know that rail is actually cash positive at the moment so no receiver would have stopped running the railway for one minute and secondly where did he get the figure of $100 million for the cost of upgrading rail—is he aware for example that on the West Coast line there are 300 bridges—and that most commentators think that the cost to the taxpayer will be many times greater; and will he resign if the figure turns out to be higher than he has publicly said? 
Mr SPEAKER 
: There were three questions there. The Minister may answer two. 
Hon PAUL SWAIN 
: Considerable work was done. I am not aware that there are 300 bridges but I know that there are quite a large number. As I say the importance of this to the New Zealand economy is critical and we are very pleased to have been able to take back involvement in this important part of the transport system’s infrastructure—in the best interests of New Zealand and New Zealanders.