Duynhoven Harry: Rail Network Bill — First Reading 
Duynhoven Harry: Rail Network Bill — First Reading 
[Volume:625;Page:19769] 
Hon HARRY DUYNHOVEN (Minister for Transport Safety) 
 on behalf of the 
 Minister of Transport 
: I move  
That the Rail Network Bill be now read a first time. 
 It is the Minister’s intention to move at the appropriate time that the Rail Network Bill be referred to the Government Administration Committee for consideration that the committee report by 23 June 2005 and that the committee have the authority to meet at any time while the House is sitting except during questions for oral answer and during any evening on a day on which there has been a sitting of the House and to meet on a Friday in a week in which there has been a sitting of the House and outside the Wellington area on a day the House is sitting despite Standing Orders 191 193(a) and 194(1)(b) and (c). 
Rail plays a significant role in this Government’s vision of an affordable integrated safe responsive and sustainable transport system. In order to achieve that vision and secure a vital part of New Zealand’s land transport infrastructure the Government repurchased the national rail network in June 2004. On 30 August 2004 the rail network assets and responsibility for operating the national rail network passed to the New Zealand Railways Corporation which is now trading as ONTRACK. That occurred because of the spectacular failure of National’s privatisation of rail. I reassure the House that rail is now safe in the hands of this good Government. That has created a need for new legislation to provide for the rolling governance of ONTRACK and to assist it to operate the rail network more effectively. 
Although ONTRACK has been able to operate under its existing legislation with an amended statement of intent many of the provisions it is operating under are outdated or redundant. The bill repeals the New Zealand Railways Corporation Act and the New Zealand Railways Corporation Restructuring Act and provides for ONTRACK’s new role as rail network owner and controller. It also provides ONTRACK with modernised governance arrangements while carrying over some of the existing provisions. In particular the provisions relating to the holding and disposal of rail network land are retained. 
Under the bill the New Zealand Railways Corporation will continue in existence with the same legal name. However it will continue to trade under its trading name of ONTRACK. The bill also provides for ONTRACK’s new objective and functions and for some principles concerning how it must perform its functions. It aligns the objective and functions of ONTRACK with the New Zealand Transport Strategy without compromising its commercial focus. 
 The bill changes ONTRACK from a State-owned enterprise to a Crown entity—in particular a Crown agent—under the Crown Entities Act. The Government considers that that is the most appropriate structure to take ONTRACK forward considering its new role objective and core functions. While ONTRACK will have a strong commercial focus return on investment will not be its sole focus. As a Crown entity ONTRACK will be required to give effect to Government policy in particular the New Zealand Transport Strategy and the forthcoming national rail strategy. ONTRACK’s objective also reflects the expectation that it will take a commercial approach. I note that the commercial access agreements provide the framework for commitments that ONTRACK has entered into with rail operators for ensuring that the network is operated maintained and renewed in a safe responsive efficient and effective manner. In order to contribute to the Government’s aim of a more integrated and consistent approach to land transport funding and management the bill will also require ONTRACK to prepare a 10-year capital development programme. 
The bill carries over and consolidates all the provisions from the existing legislation relating to the ability to deal with land held for rail purposes with the intention of preserving the current position. These provisions give ONTRACK the power to deal with the Crown-owned rail network land that was previously known as land held for railway purposes including the power—subject of course to the consent of the Minister responsible—to dispose of surplus land. In particular the 1990 Act contains specific provisions that differ from the section 40 Public Works Act provisions for offer back to former owners which enable railways land to be retained for future rail use. The bill provides for a governing board of between five and eight members to continue to provide it with additional expertise and oversight. The Government has recently strengthened ONTRACK’s board making a number of new appointments including the appointment of a new chair Mr Cameron Moore and a new chief executive Mr David George. 
Rail will play a major role in achieving the Government’s vision of an integrated affordable safe and sustainable transport system for New Zealand. For years there has been low and declining investment in the rail network which has led to problems with deferred maintenance and associated safety concerns and declining service capability. The rail network has been run down and underutilised. Establishing ONTRACK as an integral part of New Zealand’s land transport infrastructure provides the structure to meet the demanding challenges in its new role of maintaining developing and operating New Zealand’s rail infrastructure in a commercial rail environment. It has been established to promote the best outcomes in terms of return on investment congestion reduction improvements for business commuters local communities and the environment. ONTRACK requires modern legislation to adapt to its new role and allow it to continue fulfilling this vision. The bill provides the institutional arrangements for ONTRACK that will allow it to do that. I commend the bill to the House.