30 May 2018

Capital Connection funding up in the air, again

12:50 pm on 30 May 2018

A three year rescue fund for a popular Wellington train service is coming to the end of the line next month.

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Photo: RNZ / Emma Hatton

In 2015 the long-haul commuter service between Palmerston North and Wellington was in danger of closing and the two regional councils stepped in with some short-term funding.

Now that funding is coming to an end.

Horizons Regional Council transport manager Phil Hindrup said its preferred option was for central government to pick up the tab.

"We were hopeful that that might actually be the case given the new Government Policy Statement (GPS) is very supportive of alternative modes of transport, not just motor cars," he said.

"We just want the thing to operate, we haven't heard any messages that it's not going to operate, it's just they're trying to sort through this whole funding reform process and we're just sending a pretty clear message saying 'that's great, but the train still needs to operate'."

Each year 125,000 tickets are sold on the service.

Commuter Noni Oldfield catches it from Palmerston North to Wellington and back three times a week.

She said to keep working in the city, it was her only option.

"I couldn't do it, there's no bus alternative at the moment this is the only commuter service," she said.

"I couldn't do this if I had to drive. It just wouldn't be safe driving two hours morning and night three days a week, I'd fall asleep."

KiwiRail sales manager Alan Piper said despite strong commuter support for the train, it ran at a loss of $1 million each year.

"There are no immediate plans to end the service, although KiwiRail has previously stated that it would discontinue the service unless alternative funding sources are found.

"KiwiRail is working with GWRC, Horizons and NZTA to look at how funding can be made available to continue the service under the new regime," he said.

The Transport Ministry said the new regime would be finalised next month and would allocate a portion of funds to rail.

Then, on 1 September the New Zealand Transport Agency, through the National Land Transport Fund, would decide which projects got it.

Greater Wellington Regional Council sustainable transport chair Barbara Donaldson said the assumption was that the Capital Connection would get some of that funding.

However, even if the assumption was correct, it would still be three months after the current funding arrangement for Capital Connection finished.

She said all parties involved had agreed to keep on funding the service until a decision was made.

"We're all assuming that in the mean time it will continue. Both regional councils have continued that contribution in their long-term plans and the assumption is that KiwiRail will continue its contribution and providing the service.

"We're all committed to this service."

Horizons and Greater Wellington Regional Council's have each put in around $110,000 for the last three years and said they would continue to do so, if needed.

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