We like playing with trains

22/07/2008

A One News Colmar Brunton  poll shows 68% of people support the Government using our money to buy back the railways.

One thousand voters were polled, and asked that given the final price tag will go well over the billion dollar mark would they support the buying back of rail and ferry services?

The results:

  • Yes – 68%
  • No – 24%
  • Don’t know – 8%

I wonder what the result would have been had the question asked: would you prefer taxpayers’ money was spent on health and education or buying back the railways?


Not very bright

07/05/2008

Fran O’Sullivan understands why Labour wants to play with trains:

The problem is that this is really an election year move by the Labour-led Government to try and make ownership of state assets a campaign issue.

 

And what they should have done instead:

If the Government was truly serious about strengthening the role sustainable transport will play in a carbon-constrained future it would not have stymied plans for regional councils to apply local fuels taxes to fund projects like the $500 million proposal to electrify the Auckland suburban rail network.

As it is it has mopped up an out-of-date railway with taxpayers’ cash – but effectively put a blocker in the way of proposals that would get more people out of cars.

Not a very bright outcome really.

 No, but playing politics rather than running the country isn’t.


Rail purchase all about politics

06/05/2008

Fran O’Sullivan  points out that Cullen paid too much buying Railways yesterday.

Finance Minister Michael Cullen has now spent the thick end of a billion dollars of taxpayers’ cash to renationalise a flagging railway system he could have picked up for a song much earlier if he had played a more aggressive hand.

But this isn’t about a prudent financial investment; it’s about ideology and politics. Labour wants State control and to limit what National can promise to spend.

Mr Key is not going to risk electoral wrath by promising to privatise an SOE when he made a commitment otherwise. Instead a National Government will have to try to make the railways profitable – a feat that has defied previous Governments – and get by with less cash to spray around on Mr Key’s own pet infrastructure projects.

Dr Cullen is right to say the selling of the public rail system in the early 1990s and subsequent running down of the asset has proved a “painful lesson” for New Zealand. But that pain is larger due to the excessive amount that he has himself doled out from the taxpayers’ purse to get the asset back in state ownership.

The big question is whether this is the end of Dr Cullen’s buying spree.

I wouldn’t bet on it.

Nor would I. Labour is desperate to win the election and will have no compunction about spending taxpayers’ money on whatever it thinks will help it do that.

But taxpayers will hope yesterday’s acquisition is the final move in the Labour Government’s disastrous history of paying over the odds to acquire assets back from owners that can’t make enough to expand the network themselves to optimal capacity.

History would tell us this isn’t likely, but then Cullen was a historian so he’ll know that history also teaches us the only thing we learn from history is that we don’t learn from history.


Quote of the week

06/05/2008

 

 

It’s only Tuesday but it will take a lot to better this from Richard Prebble talking to Paul Henry on TV1 this morning: “Since when have Railways ever been an asset?”


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