KiwiRail being stripped to sell - Labour
Tue, 10 Jul 2012 6:16p.m.
By Tova O’Brien
KiwiRail is planning to cut hundreds of infrastructure and engineering jobs because it cannot afford to operate on its current budget.
The news comes just weeks after KiwiRail's assets were downgraded by the Government and
Labour says this is no coincidence - it believes the Government is stripping to sell.
Prime Minister John Key says the Government is not planning on selling and has no choice but to lay off staff.
“The only other option for KiwiRail would be to raise prices and that runs the risk that there are increased costs for all other New Zealand businesses and that could jeopardise jobs on other work sites,” says Mr Key.
Two weeks ago the Government announced a write-down of KiwiRail's assets - cutting its value in half to $6.7 billion.
“The Government has got a bit of a thing about selling assets in order to pay the bills which is very short term thinking and it could do it with KiwiRail,” says Green Party co-leader Russel Norman.
But John Key says that is not the case.
“The Government has no plans to sell KiwiRail - I mean it's highly skeptical we could even sell KiwiRail,” says Mr Key.
When the Labour government bought back KiwiRail four years ago it cost around a billion dollars all told, Mr Key says that was a mistake and that the tax payer has spent billions on it since for zero profit.
Post a Comment
Before commenting, please take the time to read our moderation guide
(Won't be published)
11/07/2012 4:38:53 p.m.
The question is, who would buy it even if it were put up for sale?
It's pretty much worthless, unless you sell the trains as scrap steel..
11/07/2012 4:34:01 p.m.
Dont blame the present government for the ills of Kiwi Rail. Rather blame the green brigade for stoping the construction of more hydro scheames and the chance to electrify the railways and stopping the burning fossil fuels.
10/07/2012 7:54:39 p.m.
Yes, get rid of this huge cost to taxpayers
Police had to physically push anti-poverty protestors back a...
A crew member of a cruise ship who was seriously injured abo...
Tonight comes the Budget announcement you didn't hear yester...
It's New Zealand Sign Language Week and it is hoped awarenes...
Copyright © 2013 MediaWorks TV. All Rights Reserved.