Rail deal payout angers road user lobby groups

By SCOTT MacLEOD Transport reporter

Car and truck lobbyists are angry that a Government agency will give Auckland $22 million towards its lease of railway lines.

Transfund NZ agreed "in principle" on Friday to give the money to Auckland councils, easing concerns that their $112 million deal with Tranz Rail would be scuttled.

But the Automobile Association (NZAA) and Road Transport Forum called the payout a "gross abuse of road users' money" that should have been spent on motorways.

The announcement came after months of negotiations between Transfund and the Auckland Regional Council, which acted on behalf of the city's local bodies.

Auckland asked Transfund for $45 million and will receive less than half that amount, but city leaders are still greeting the payout as a major step towards obtaining the railway lines.

The deal will see Auckland pay Tranz Rail $112 million to give up its control of the city tracks. Tranz Rail will then pay back $2 million a year to Auckland to allow its freight trains to use the lines.

The councils want an overseas train company to move in and run passenger services on the lines, hopefully easing traffic jams on the city's motorways.

But Transport Forum chief executive Tony Friedlander said Transfund's roading account was never set up to buy back Government assets.

"If the Government wants to buy back railway tracks it should get the money from the sale of NZ Rail, and not expect road users to pay for it," Mr Friedlander said. "None of the proceeds from the rail sale were paid into the roading account, so it is unacceptable for road users to foot the bill now."

NZAA director of public affairs George Fairbairn said road spending had already been slashed by $39 million this year, and $600 million in petrol tax had been siphoned into Government coffers. Now, the roading account was being robbed.

Transfund chiefs could not be reached yesterday.

Auckland Region Mayoral Forum chairwoman Chris Fletcher said it would have been nice to get the full amount sought, but Transfund was held back by regulations.

"There is still a very long way to go but this is a major commitment on funding and we are all very pleased about that."

Infrastructure Auckland has already pledged $30 million towards the deal, so the councils still need another $60 million.

The news came just one day after the Wellington region gave up on the idea of fully buying its own rail system, Tranz Metro.

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