Two regional councils say the fate of the Capital Connection train service between Palmerston North and Wellington hinges on the Transport Agency, which is refusing to stump up cash for the service.
The Capital Connection has been losing several hundred dollars a day since other commuter trains began servicing Paraparaumu and Waikanae more than a year ago and KiwiRail says it can't keep absorbing the losses.
Wellington and Manawatu-Wanganui regional councils both say they would subsidise the service if the Transport Agency also contributed.
But the Transport Agency says there is no congestion problem between Wellington and Palmerston North, so there is no justification for it investing.
