Labour says the Government is putting too much pressure on KiwiRail while it spends billions of dollars on uneconomic highways.
The State-owned company intends to cut $200 million from its budget over the next three years.
The Government says KiwiRail has assured it that the safety of the network will not be compromised.
But Labour leader David Shearer says the Government has to recognise the importance of rail to the country's economic development.
The Rail & Maritime Transport Union says the business plan is intellectually bankrupt.
General secretary Wayne Butson says the plan will run KiwiRail into the ground.