KEY POINTS:
Initial reaction to the Government's decision to buy back the rail and ferry business from Toll NZ has been positive:
The National party are the exception.
The party says it won't sell Toll's rail and ferry business if it wins the election but says the buy-back decision
is reckless given pressures households are facing.
National think the purchase will end up costing many hundreds of millions more once rolling stock costs were added to the $665m purchase price.
The National party opposed the purchase but recently announced it would sell no state assets. Previously deputy leader Bill English said it would consider selling it but that has been ruled out.
Progressive Party leader Jim Anderton was one who welcomed the decision.
"The asset sales of the eighties and nineties were mostly a disaster for New Zealand and the conga line of apologists for asset sales should now be apologising for getting so much so wrong," Mr Anderton said.
He believed public ownership meant rail would be improved and made successful.
The Green Party welcomes an initiative to reduce our future depedence on oil.
"Rail is an essential public asset in a sustainable transport system. It has taken years of pushing by the Green Party for the Government to agree, but we applaud them for doing so now," Green Party Co-Leader Jeanette Fitzsimons said.
"The next step must be substantial investment in the infrastructure and rolling stock. Freight will not move off trucks on to rail while there are delays and unreliable schedules caused by inadequate track, tunnels and bridges, and poor signalling.
"This Budget must begin the work - we don't want to wait another year to invest in this vital transport system.
"This will be expensive but is one of the most important things we can do for our future."
Campaign for Better Transport convenor Cameron Pitches said the Government's purchase is a positive step in the direction of recognising rail as a "strategic asset".
"There is so much potential for rail to be used in the future with rising petrol prices," Mr Pitches said.
He said rail is being dwarfed by air as a travel option because of cheap air tickets but a combination of rising aviation petrol prices and the possible electrification of the entire network could make rail a viable alternative.
Mr Pitches said the sale of the network could also see more freight moved off the roads and on to trains.
"Maybe there's finally an opportunity to move it by rail so we could get those big trucks off our roads," Mr Pitches said.
New Zealand First has welcomed the Government's purchase of Toll New Zealand's rail and ferry business but regrets that the railway system was sold for a song in the first place.
Transport spokesperson Peter Brown said the move was in New Zealand's best interests and would benefit both freight and passenger users.
"The return of this business to the rightful owners - the taxpayers - will result in improved service, innovation and strong investment in a vital part of the country's infrastructure.
"The regrettable part of this announcement is the history of the railways system being sold by the then National government to its mates who then looted and plundered it.
"While today's announcement is good news, we have to acknowledge that the saga of past private ownership has cost taxpayers dearly.
"Now such an asset is back in Kiwi hands, we challenge National to state clearly what its policy is now. Would National sell the rail and ferry business again or keep it?
"Taxpayers need some answers from John Key today," said Mr Brown.
PRIVATE INDUSTRY APPLAUDS MOVE
One of the country's biggest rail customers, MainFreight, has welcomed the announcement and pledged to up its own investment if services improve.
Finance Minister Michael Cullen this morning said the Government had bought back the rail and ferry business for $665 million.
The Crown has been in negotiations with Toll over a buyback for several months.
It comes against a backdrop of wrangling over Toll's access agreement to the rail tracks, which are already owned by the Crown, with the Government saying it has been failing to pay its fair share.
MainFreight chief executive Don Braid said the sale would give some certainty.
"There has been a problem with the debate and aggravation between Ontrack and Toll over access fees and I guess the seas were somewhat clouded as to how much infrastructure was being invested in by Toll," he told NZPA.
"Certainly we've seen a deterioration in services over the last couple of years as there's a lack of investment in infrastructure in New Zealand and this announcement may well see that infrastructure being improved which would be good for all of us."
Mr Braid said the company had a "substantial spend" with rail in the country and would boost its investment if services improved.
He would not say by how much; "You'll see it's a substantial amount".