Labour looks at Napier-Gisborne rail

Anna Lorck

Labour has highlighted the reopening of the Napier-Gisborne rail line as an example of the projects it would bankroll through a proposed $200 million regional development fund.

The party released its regional development policy yesterday, with leader David Cunliffe saying Labour would invest at least $200 million over four years into a fund that "will drive cornerstone growth projects in our regions".

"We understand that the kinds of projects and infrastructure required to generate ongoing and sustainable wealth in the regions shouldn't stand or fall on whether they can turn a quick buck or not," he said in a speech to Local Government New Zealand's annual conference.

One such project was the Napier-Gisborne line "which could be crucial for the efficient processing of East Coast timber and providing a sustainable future - a back bone to the east coast", he said.

The rail link was mothballed in December 2012 and Hawke's Bay Regional Council has set aside just under $5.5 million in its annual plan last month to re-establish it, but will only invest the money if KiwiRail and the Government fully-fund the cost of returning the track and associated infrastructure in a good "fit-for-purpose" condition. The Government has rejected calls to spend money on the line, saying the economic case for re-opening the rail link does not stack up.

Napier Labour candidate Stuart Nash said economic statistics were "pretty damning" for the Hawke's Bay region.

"We should be doing incredibly well. We have the weather, we have great schools, we have good local infrastructure, we have great communities, we have cheap house prices, we have a reasonably skilled workforce, yet for some reason we're languishing in the doldrums."

What was required was the partnership between local and central government proposed by Labour's partnership, he said.

"If I'm the MP for Napier, I'll be pushing incredibly hard for a decent chuck of that money [the $200 million fund] to come into Hawke's Bay to create the sort of jobs we need."

Labour's Tukituki candidate, Anna Lorck, said projects funded under the policy would be driven by local initiatives. "It needs to be a clean sheet. It's a robust and tangible way to get public-private partnerships going."

Tukituki National MP and cabinet minister Craig Foss said while it was a shame the Napier-Gisborne rail line had been mothballed, "every study" had shown it was not viable so Labour's policy would be "putting good money after bad".

National was putting its efforts into other economic development initiatives, such as the Ruataniwha water storage scheme, he said. He and National's Napier candidate, Wayne Walford, have backed a study into the feasibility of turning the rail line into a cycle trail.