The Transport Minister says there is no realistic hope taxpayers will ever get back the hundreds of millions of dollars already invested in KiwiRail. Treasury has valued the network at $388 million.
The minister, Steven Joyce, has released the Treasury valuation of KiwiRail, of $388 million, while the previous government paid $690 million for the rail network.
Mr Joyce says previous owner Toll Holdings is the only party to have got a good deal.
He says this year, KiwiRail will be subsidised by $90 million and has warned any future subsidies will need to be approved by Cabinet and be bankable.
Mr Joyce says there is a serious question regarding the network's future profitability, and a lot of work going on to see what capital investment and support is needed.
Steven Joyce says the Government considers the network to be a sunk asset but is committed to funding KiwiRail and has no intention of a fire sale.