Toll agreement exclusive – Cullen

Finance Minister Michael Cullen today confirmed that the agreement reached with Toll Holdings was an exclusive one pending the success of Toll’s acquisition bid for Tranz Rail.

“We were prepared to give them that status because we recognise they have the managerial and financial capacity to restore Tranz Rail to viability,” Dr Cullen said.

“Toll’s strong balance sheets also mean that it will be able to put in the capital required to rebuild the rail fleet, and to pay full access costs for the rail network in the long term rather than rely on a subsidy from the taxpayer.

“It was because Toll was able to bring these assets to the deal that the Crown was prepared to give them exclusivity and we will abide by the spirit and detail of that commitment.

“But I have made it clear from the outset that the original Heads of Agreement between the government and Tranz Rail will be reactivated should Toll’s bid for Tranz Rail fail.

“At that stage, the government would be prepared to negotiate a similar arrangement to that we have with Toll were another company able to bring the required skills and capacities to the table,” Dr Cullen said.

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