4 Mar 2009

Govt warned of problems with Chinese-built trains

9:12 pm on 4 March 2009

The Labour Party has warned the Government of problems overseas with Chinese-built trains it intends buying for New Zealand.

The Government has approved a KiwiRail proposal to borrow $75 million to buy 20 new locomotives from China to arrive by August 2010.

In Parliament, Labour's economic development spokesperson Trevor Mallard asked whether Finance Minister Bill English was aware that Malaysia bought 20 of the same model locomotives from China eight years ago.

Mr Mallard says only five are still running, compared with all 20 German-built locomotives Malaysia bought at the same time.

He says the German engines could have been assembled in the Hutt Valley.

Mr English replied he was not aware of any problems with the Chinese locomotives.