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Govt not ruling out KiwiRail sale

Published: 4:47PM Thursday June 28, 2012 Source: ONE News

  • KiwiRail (Source: ONE News)
    KiwiRail train - Source: ONE News

The Government has not ruled out selling off all or part of KiwiRail.

Labour's SOE's spokesperson Clayton Cosgrove asked Economic Development Minister Steven Joyce in Parliament today to provide a guarantee that National will not sell off the State Owned Enterprise.

Joyce said: "I wouldn't guarantee it because the reality is you can't guarantee anything in this world. But I can tell the Member [Cosgrove] it's a long, long time before we'll get back under any circumstances the money the Labour Party wasted in KiwiRail."

Cosgrove said the comments were further evidence National was preparing KiwiRail to be next on the auction block, after the power companies and the national airline.

The Government announced yesterday KiwiRail would be restructured and its land holdings shifted to another entity, with a writedown of some $6.7 billion. The changes will be made as at January 1 next year.

Cosgrove also claimed Joyce knew about the planned write-down of KiwiRail since 2010.

"That means they've got no credibility whatsoever when they claim they couldn't quantify it in last month's Budget.

Cosgrove said the Government was being dishonest and it did not want to include the information the Budget because it would have "blown out" the deficit by a further $1.8 billion.