Baldock Larry: Questions for Oral Answer — Questions to Ministers 
Baldock Larry: Questions for Oral Answer — Questions to Ministers 
[Volume:608;Page:5458] 
1. LARRY BALDOCK (United Future) 
 to the  
Minister of Finance 
: Does the Government have any plans to provide financial assistance to Tranz Rail such as subsidies to avoid the possibility of statutory management if that is seen as necessary to maintain the integrity of the national rail network? 
Hon PAUL SWAIN (Associate Minister of Finance) 
 on behalf of the 
 Minister of Finance 
: The Government has a range of options available to it but the Minister has already made clear certain broad parameters in relation to this. 
Larry Baldock 
: Is the Minister concerned that any subsidies or other cash injections the Government may decide to confer on Tranz Rail will simply end up in the pockets of overseas shareholders rather than contributing to the quality of the rail network here in New Zealand? 
Hon PAUL SWAIN 
: The Government is concerned about the quality of the rail network and is currently considering a range of options. 
Helen Duncan 
: Are officials continuing to meet with Tranz Rail? 
Hon PAUL SWAIN 
: Officials have met with Tranz Rail which has undertaken to provide further information to them. Once this information has been received and examined further discussions will be held. 
Hon David Carter 
: Noting the Minister’s concern for Tranz Rail’s current situation I ask which does the Minister think has been his better taxpayer investment: $81 million for a few kilometres of Auckland railway track or $875 million for an airline? Which is the better of the two? 
Hon PAUL SWAIN 
: Both were important in achieving the Government’s transport strategy and a lot better than the worst privatisation in New Zealand by that previous Government. 
Keith Locke 
: Does the Minister agree with the suggestion made by the Rail Freight Action Group that it would be preferable for the Government to own the rail network and make sure the network is properly maintained including important but less-profitable lines rather than subsidise Tranz Rail? 
Hon PAUL SWAIN 
: I am aware of those comments and as I said earlier the Government is looking at a range of options. 
Larry Baldock 
: In the light of recent increases in the volume of freight transported by our coastal shipping is Government inaction over Tranz Rail to date an indication that the Minister does not in fact see a long-term future for non-subsidised commercial rail freight in New Zealand? 
Hon PAUL SWAIN 
: No. 
Rt Hon Winston Peters 
: Seeing that the Minister has raised the issue of privatisation I ask him why it was that the Labour Party back in 1993 on the issue of the 20 July sale of New Zealand Rail to a number of his party’s former backers and mates took the stance back then which he seeks to defend today that the sale was fine by Labour excepting it disagreed with the timing? 
Hon PAUL SWAIN 
: I do not recall that but what I do say is that that privatisation was one of the worst. There was no Kiwi share no ability for the Government to be engaged and it is interesting to see that Ruth Richardson still defends that and thinks that what is happening to Tranz Rail at the moment is still OK.