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Source: ONE News -
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The Prime Minister says there are no plans to sell KiwiRail.
Speculation began at the weekend that the government was looking to remove Jim Bolger as head of the SOE.
Speaking to Breakfast, John Key praised Bolger's record but refused to confirm any reappointment to the job.
"Jim's done a tremendous job for New Zealand, when he served us as ambassador, as I think an outstanding Prime Minister of New Zealand and on SOEs, but whether he continues with KiwiRail is a different issue."
Key did agree that KiwiRail's governance needs refreshing.
"Behind the scenes, Steven Joyce is working with all of the stakeholders, the unions, but most importantly the customers saying if you really want this thing to work, actually you are going to have to invest in it as well in terms of making sure you support the business."
But he says neither Cabinet nor Caucus has decided or even discussed selling the SOE.
"Who would buy it in its current form? Given the capital investment that's required, this is not a simple business for someone to pick up. There's a price at which anything can be sold but that's not on the table at the moment," Key says.
"Essentially the previous government bought something that was completely over-valued, it didn't have a credible business plan to work, and there's literally billions of dollars of shortfall now that we are going to have to fund so the taxpayer's going to get a return for that and that's the aim..."
Almost $700 million has already been invested in KiwiRail, but Key says even more money is needed to bring it up to scratch.
"With a large amount of investment, both the company taking debt and the Crown putting in investment over a period of time, you could see it returning to profitability, but it's a big ask."
