Shanks Katrina: Questions for Oral Answer — Questions to Ministers 
Shanks Katrina: Questions for Oral Answer — Questions to Ministers 
[Volume:670;Page:17123] 
6. 
KATRINA SHANKS (National) 
 to the  
Minister of Transport 
: What action is the Government taking to improve Wellington’s train network? 
Hon STEVEN JOYCE (Minister of Transport) 
: 
 Today I announced a further funding package from the Government that will bring Wellington’s metro rail back up to a high and reliable standard for commuters. The Government is committing a further $88 million for the upgrade of the remaining signalling and power supplies in Wellington. In addition the Government will also co-fund the Greater Wellington Regional Council’s $80 million refurbishment of the 30-year-old Ganz Mavag units with the help of the New Zealand Transport Agency. This funding comes on top of the existing $383 million upgrade which includes the new Matangi trains. 
Katrina Shanks 
: What other changes have been announced today as part of the package? 
Hon STEVEN JOYCE 
: The Greater Wellington Regional Council has agreed to share the cost of and responsibilities for delivering these and future improvements to Wellington’s rail system. The New Zealand Transport Agency will now fund rail on the same basis as it funds other forms of public transport including a move to a 50 percent funding rate over 10 years but also funding the capital improvements. The council will pay a realistic track access charge to KiwiRail with a subsidy from the New Zealand Transport Agency that reflects the fair cost of maintaining the track and other assets. The Wellington rail network has been a considerable and ongoing source of frustration for many commuters and it took the previous Government a huge amount of time to get around to doing anything about it. This package coupled with the previous investments will transform the service into a modern reliable public transport option for Wellingtonians. 
Chris Hipkins 
: Why is the Government not funding the full cost of the Wellington rail upgrade which will mean that Wellingtonians will face increased rates to fund the rest of it and why should they not feel like they are getting the rough end of the deal given that he is spending 15 times what he has allocated for Wellington rail on his “Holiday Highway” north of Auckland? 
Hon STEVEN JOYCE 
: I realise that Mr Hipkins is one of the Labour Party people who thinks that Government money is costless but actually it is not; it comes from taxpayers. This is a very good partnership between taxpayers; the Greater Wellington Regional Council; KiwiRail which is contributing some assets; and the New Zealand Transport Agency which is contributing transport subsidies. It is a very good package and I am sure that the member could endorse it because it will be very good for Wellingtonians including members of his own electorate. 
Kris Faafoi 
: Will the Minister reassure Wellington rail commuters that they will not face fare increases until the service has actually improved; if not why not? 
Hon STEVEN JOYCE 
: If the member had done his research he would know that the fares for Wellington rail are set by the Greater Wellington Regional Council not by the Government. That happens to be the reality of it. It is important to note as we have said previously that many years of mismanagement of the Wellington rail network—including a good number of years by the previous Government before it got its act into gear and started making some form of investment—has meant that there has to be a catch-up which has to be met in a fair way between all the stakeholders including passengers ratepayers and taxpayers. 
Hon Sir Roger Douglas 
: Has the Minister seen the comments of Dr Roderick Deane in a recent speech that the rail network will be valued at $14.5 billion by 2015 yet KiwiRail will not generate any surpluses over the next 5 years and does he agree that pouring money into projects that do not yield any return is a sure path to fiscal crisis? 
Hon STEVEN JOYCE 
: There is a whole range of answers and I am struggling to pick one. The point that I would make to Dr Deane is that one has a sunk asset that one has to decide whether one is going— 
Hon Trevor Mallard 
: I raise a point of order Mr Speaker. I just wonder whether instead of leaning over the member could— 
Mr SPEAKER 
: No I will not have that. 
Hon STEVEN JOYCE 
: One would think the member for Hutt South would have some interest— 
Mr SPEAKER 
: We will not have any of that. The House will come to order. 
Hon STEVEN JOYCE 
: The important thing which perhaps Dr Deane does not realise is that passenger transport in both Wellington and Auckland—and in fact around the world—have never made profits. They provide congestion benefits to motorists which is why public transport subsidies are in place. In regards to his other assertions about the rail network generally I do have concerns about the value of that asset. The Government certainly has concerns and we think the previous Government overpaid hugely to return that asset to the public fold. We are making the best of a bad situation and seeking to get the best possible return we can from that asset.