Rail Union says Government rail investment on right track

Rail and Maritime Transport Union media release FOR IMMEDIATE RELEASE Monday 2 March 2009

The union representing rail workers in New Zealand has welcomed today's announcement of $115 million public investment in rail infrastructure.

Rail and Maritime Transport Union General Secretary Wayne Butson says the announcement of funding for new locomotives and passenger carriages would be a major boost for the rail system.

The Government announced today that it had approved $75 million for purchasing 20 new locomotives from China to be used on key freight routes and $39.9 million on upgrading 17 passenger carriages on its TranzScenic passenger routes, work which will be done at Dunedin's Hillside workshops.

Mr Butson said the investment would provide a much needed boost to infrastructure while also contributing to stimulating the economy.

"While there is still a long way to go to build up to a world class rail system in New Zealand, we believe this announcement shows a serious commitment to rail investment and also signifies that the National led Government supports rail transport and is not just about roads."

Mr Butson says he agrees with Infrastructure Minister Bill English that the investment in KiwiRail will lift the productivity of freight services and the profitability of key tourist passenger routes.

He says the investment in KiwiRail shows a continuity with the policies of the previous Government which was a good thing for stability in the transport sector.

Mr Butson says the continuation of a positive approach of public investment into rail by the new Government was a refreshing change from the failed privatisation policies of the past.

He says he is interested in the national infrastructure unit within Treasury being established by the Government and was keen to see representation from workers alongside managers and local government to provide a balanced perspective.

ENDS

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