Brownlee Gerry: Questions for Oral Answer — Questions to Ministers 
Brownlee Gerry: Questions for Oral Answer — Questions to Ministers 
[Volume:613;Page:10138] 
2.  
GERRY BROWNLEE (Deputy Leader—National) 
 to the  
Minister of Finance 
: Does he stand by his statements that the Government’s initial contribution towards the upgrade of the rail track will be $200 million and that it will be possible to recover the ongoing investment costs from that point on; if so why? 
Hon Dr MICHAEL CULLEN (Minister of Finance) 
: 
 Yes. The Government’s commitment under the heads of agreement with Toll Holdings stops at $200 million. Toll Holdings will pay for any additional investments from which it derives commercial benefits including the cost of capital. 
Gerry Brownlee 
: Is he aware that Solid Energy New Zealand’s assessment of the midland coal line requires $183 million to be spent over the next 15 years and considering that this is just one part of the network but a considerable part of the $200 million available how can he be confident that that $200 million plus the access charges will be enough to renew and maintain the entire network? 
Hon Dr MICHAEL CULLEN 
: The member’s question answers itself when he says that $183 million is the estimate of our spending over the next 15 years on that particular aspect alone. If expenditure above the $200 million is required for commercial reasons then that is recouped. 
Mark Gosche 
: What benefits does the Toll Holdings deal offer New Zealand? 
Hon Dr MICHAEL CULLEN 
: It undoes the worst effects of the very soft privatisation deal entered into by the National Government in 1993. It gives the country the chance to get a decent infrastructure for rail and a better balance between rail and road freight. 
Rt Hon Winston Peters 
: Does the Minister remember the view taken by the Labour Party on 20 July 1993 when it announced its support of this deal except that it said the timing was wrong? 
Hon Dr MICHAEL CULLEN 
: Even the best of us occasionally err. 
Jeanette Fitzsimons 
: Can the Minister confirm that the long-term value to New Zealand of having a functional rail system is considerably more than $200 million and that that value includes reducing or avoiding heavy trucks on routes such as the Napier-Gisborne highway and the road to Port Chalmers through Dunedin City? 
Hon Dr MICHAEL CULLEN 
: I absolutely agree with that. Indeed I think the best example is what would happen if the rail infrastructure collapsed and central North Island logs had to be carted by road over the Kaimai Range into Tauranga. 
Rodney Hide 
: Can the Minister confirm for the House that the contribution is capped at $200 million and can he tell the House that this initial contribution will be the final contribution the taxpayer has to make? 
Hon Dr MICHAEL CULLEN 
: No I certainly cannot confirm the latter because the Government may have other reasons for infrastructure improvements beyond the commercial need of the time. 
Gerry Brownlee 
: What assessment has the Government done so far of what capital expenditure it might have to commit over and above the $200 million? 
Hon Dr MICHAEL CULLEN 
: There is still a lot of work to do on the long-term infrastructure needs of the rail system. I think it is fair to say that we knew a good deal more about it than some other potential players when recent events occurred.