The Government will not change KiwiRail's turnaround plan despite there being little likelihood the company can meet the financial target set for it.
The turnaround plan, announced in 2010, aims to fund all costs from customer revenue within a decade.
In Parliament this week, State Owned Enterprises Minister Tony Ryall admitted it was unlikely that KiwiRail would be able to find the $3.85 billion from its own balance sheet as required by the plan.
He said the business had been affected by the Christchurch earthquakes, the Pike River disaster and economic downturn.
Transport Minister Gerry Brownlee says there is no need to change the plan and KiwiRail has to keep driving hard at the targets until it hits them.
Labour says the Government is being completely unreasonable and it should revise the turnaround plan so it is more realistic.
