Budget 2015: $400m for rail but not Auckland

The boost for KiwiRail follows $1.042 billion invested by the Government since 2010 in the push to build its freight business. Photo / NZME.

KiwiRail is gaining $400 million of new government money for its "turnaround" plan, but youth organisation Generation Zero is disappointed no extra funds are on offer to get more Aucklanders on trains.

The boost for KiwiRail follows $1.042 billion invested by the Government since 2010 in the push to build its freight business.

Despite public concern about short-term cost-cutting measures such as a potential replacement of electric locomotives between Hamilton and Palmerston North with diesels, Transport Minister Simon Bridges declared the government rail operation was "integral to New Zealand's land transport system."

The Government is committing $209.8 million to KiwiRail in 2015-16 from Crown asset sales and $190 million the following year.

Other new spending includes an extra $10.2 million for free off-peak bus, train and ferry travel for pensioners, taking the total allocation for 2015-16 to $28.1 million. That's up from $26.1 million this year, and follows what Mr Bridges says were 11 million free trips in 2013-14.

The transport budget will run to $4.27 billion, compared with $3.87 billion this financial year, but most will be from fuel taxes rising 3c a litre in July.

Crown money will cover a $140 million loan announced in last year's Budget for accelerated Auckland highway projects, $35 million previously advised for urban cycleways, and $97 million promised before the election for regional roads schemes such as a new bridge over the Motu River from Gisborne.

Generation Zero spokesman Sudhvir Singh welcomed the security offered to KiwiRail as a recognition by the Government of a need to limit trucks on the road, but a lack of new money for Auckland public transport represented "a lost opportunity".

"Despite record rail patronage and a bottleneck at Britomart, the Government continues to insist on delaying the [$2.5 billion] City Rail Link, despite Auckland Council considering this the number one transport priority in Auckland," Dr Singh said.

"The urgent need for the City Rail Link and other public transport investment has grown further with today's announcement that the Government will fast-track building houses on Government-owned land in Auckland."

Auckland Council's finance and performance committee yesterday backed an accelerated transport programme supported by a new $114 annual levy on every household for projects such as bus-rail interchanges at Otahuhu, Manukau and Te Atatu.

But councillor Cameron Brewer said the Budget showed no great alignment between the Government and council, as heralded by Mayor Len Brown. "The Government has wholeheartedly and publicly bumped the mayor again."

Commuter Pavan Prasad was disappointed there was nothing to persuade him to use public transport to get to work in the city from Mangere.