22 Apr 2010

Rail popular, but no one wants to pay - Joyce

11:48 am on 22 April 2010

Transport Minister Steven Joyce says the trouble with running a rail service is that everyone wants it, but no one wants to pay for it.

The minister's suggestion that ratepayers should pay more of the real costs of running commuter services have been attacked by local Government politicians and by experts and commuters themselves.

But Mr Joyce says the Auckland and Wellington services fall short by $20 million annually of meeting their operating costs.

At present the Government pays 60% of that as well as meeting the cost of rail network upgrades, and says it is not too much to ask councils to pay more.

The Government will announce further spending plans for KiwiRail in the Budget on 20 May.

ARC baulks at paying more

Auckland Regional Council says the Government won't squeeze more money out of its ratepayers for rail.

ARC chair Mike Lee says Auckland has already paid more than its share and the council refuses to pay more.

WRC says it does not know if it has been paying its fair share or not, because there has been no transparency.