The Southerner passenger train has had its life extended for at least the next four months, after the Government announced limited financial backing yesterday.
Economic Development Minister Jim Anderton said the Government would provide $140,000 to keep the loss-making Southerner running between Christchurch and Invercargill for at least that
period, until a long-term solution could be looked into.
"This offer is being made because of the potential regional development and tourism benefits from the service," he said.
The $140,000 offer was subject to two conditions: that local authorities meet the remaining amount required to continue the service for the four months, and that they investigate potential contributions to regional development and tourism. A further $30,000 is being offered for development investigations if local authorities matched that amount.
Mr Anderton has planned a conference call next week with the mayors and chairpeople of all councils affected. Councils on the Southerner line which had not yet indicated support for the train would be asked to contribute.
Otago Regional Council has agreed to put up $10,000, but only if the Government extends the train's run until February.
The Dunedin City Council agreed in principle to provide financial backing but was awaiting further information.
But Opposition MPs have turned Mr Anderton's offer into a political target, calling it "the actions of somebody trying to justify his existence".
Act MP Penny Webster said the offer was "throwing taxpayer money at a rail network that is poorly patronised" to score points with the community.
- NZPA
