Cullen's train set costs us big time

Michael Cullen’s trainset has and is costing us big time. Labour’s $1billion+ rail bribe is now only worth $388m just one year later!!

$600+m wasted by total incompetence.

During its last year in office, the Labour government spent more than a billion dollars on KiwiRail – an investment that is now valued at just $388 million, says Transport Minister Steven Joyce.

He says there is no realistic chance of taxpayers getting their money back in the foreseeable future.

The last Labour government paid $690 million for the Toll NZ rail assets which, according to a valuation undertaken for the Treasury and KiwiRail, are now valued at just $388 million.

Mr Joyce says while this was a fantastic deal for Toll Holdings, who sold the company to the government, taxpayers should be concerned.

“In addition to the $690 million that was paid, by the end of this month, taxpayers will have provided further support to the tune of $316 million to the combined rail business since the purchase.”

The $316 million comprises:

  • $74 million in operating support
  • $40 million in capital grants for upgrade and growth projects
  • $195 million in loan facilities (including $140 million to pay off KiwiRail’s debts to Toll Holdings).
  • $7 million equity injection.

I say ditch the whole stinking mess and use the netwrk for integrated truck and bus lanes and stop the bleeding. You could hardly describe the rusting buckets of bolts as assets so it wouldn’t break any election promises.