Twyford Phil: Oral Questions — Questions to MinistersText is incorporated into the Bound VolumeTwyford Phil: Oral Questions — Questions to Ministers[Sitting date: 02 April 2015. Volume:704;Page:2870. Text is incorporated into the Bound Volume.]1.PHIL TWYFORD (Labour—Te Atatū)to the Minister for State Owned Enterprises: What reports if any has he received about KiwiRail’s plans to get rid of electric locomotives on the North Island main trunk line and replace them with diesel locomotives?Hon TODD McCLAY (Minister for State Owned Enterprises):I have not received any reports on KiwiRail’s review of its locomotive assets. However I am aware that KiwiRail has put out a statement which said: “As with any responsible business operator KiwiRail has a continuous process of asset management. The EF class of locomotives have reached the point that a review of their future is required. They are performing poorly and this is beginning to impact on our operations so we are currently reviewing their future.” It is my expectation that KiwiRail reviews any asset that may not be performing well to ensure that it continues to meet operational requirements. However I also note from the KiwiRail statement that no decision has been made.Phil Twyford: Why was he not told by KiwiRail’s board under the no-surprises policy about its proposal to implement dirty diesel on the North Island main trunk line putting hundreds of jobs and billions of dollars of infrastructure in jeopardy?Hon TODD McCLAY: I am informed by the statement that KiwiRail put out that no decision has been made yet so what the member is doing is speculating. This is a decision and consideration for the KiwiRail board. When it has made a decision it will signal that to us.Phil Twyford: What is his view about the consequences of a proposal that would put at risk billions of dollars’ worth of electrification infrastructure based on the assumption that if electrification infrastructure is not used it will have to be removed from the line and has he told the Minister of Finance about that possibility?Hon TODD McCLAY: The Government’s commitment to KiwiRail is clear. Since 2008 we have invested $1.3 billion in this. When one considers the amount that was spent by the previous Labour Government to buy KiwiRail—and it spent too much of it—more than $2 billion has been spent. We expect KiwiRail to run its business efficiently and I think that taxpayers have a right to expect that KiwiRail will consider the very best way to deliver service in that environment.Phil Twyford: How does dirty diesel on the main trunk line square with his Government’s commitment to reduce carbon emissions in the transport sector at a time when every other country is trying to reduce its reliance on fossil fuels and increase electrification in the transport system?Hon TODD McCLAY: I repeat again that no decision has been made. Firstly I expect KiwiRail to assess all of the options including environmentally. Secondly I think this Government’s commitment to renewables is beyond question. Almost 80 percent of electricity generated in New Zealand is renewable. I expect KiwiRail on behalf of the taxpayer to run its business efficiently and effectively and that is what we are waiting for it to do.Phil Twyford: Why is he allowing KiwiRail to buy cheap Chinese diesel locomotives when the last lot of cheap Chinese electric locomotives have spent months in the workshop laid up with mechanical problems and asbestos contamination and the cheap Chinese rolling stock has had equally disastrous consequences?Hon TODD McCLAY: The Government on behalf of the New Zealand taxpayer has invested $1.3 billion in KiwiRail since 2008. I do not think that anything it is doing is cheap.Phil Twyford: I seek leave of the House to table a letter from KiwiRail management to staff about the dirty diesel plan.Mr SPEAKER: I will put the leave. Leave is sought to table this letter. Is there any objection? [Interruption] Order! There is objection.