Labour's $1 billion train set now worthless

[3umph]

No, i dont think theyre blaming them at all. I think the facts speak for themselves.

yip yip yip

[Clockwork]

Accepted. But as Headbanger says, it's the price that was paid. Seriously - who else was going to buy a bankrupt railway in the remote South Pacific? The NZ Government was always the only real bidder. If they'd been patient they could have bought it for $1. Plus liabilities, so there'd be a bigger cost on top, but not $500 million.

Maybe, but then Toll could have sold the rolling stock for its scrap value and put thousands of workers on the dole and completely stuffed up the nations transport infrastructure.

[Forest]

I have no great love for Toll, but I'm seriously impressed by how well they screwed the last Govt.

I wish my staff had that level of commercial skill.

[MisterD]

I have no great love for Toll, but I'm seriously impressed by how well they screwed the last Govt.

I wish my staff had that level of commercial skill.

It's easy when it's obvious the other party is a desperate idealogue who doesn't care how much he spends of other peoples' money.

It's bloody obvious that this was nothing but an exercise in economic "scorched earth" by Sullen looking to spend everything in the kitty before he got booted out of office.

If a CFO of a listed company had acted the way Sullen has done...he'd be looking at jail time. Mickey's fucking off with a gold plated pension. Indy? Can I have a lend of your assault rifle when you get it?

[marty]

and they also bought Air NZ which has just announced a big drop in profits.

Air NZ may have announced a drop in profits, but the value of the company has essentially remained - not to mention for an airline - it is one of the healthiest in the world - even Emirates is seriously in the red.

[enigma51]

How come our resident labour supporter havent posted any thing about this?

Where are you skyrider?

[DougieNZ]

Don't get me started on this one...

Sadly, and whoever is in power, rail will continue to need funding from govt while the current road user charges model remains.

Trucks do untold damage to our roads and pay a fraction of the cost for their repair and maintenance. Rail pay the full cost for any maintenence of the rail network.

We see billions spent on roading projects every year, while little (in comparison) is spent on improving the rail infrastructure.

I see a lot of brand new trucks driving around. Rail motive power is at least 30 years old.....

I say increase road user charges by a muliple of 5 (except where rail cannot service). Then we will start to see a level playing field between rail and road. Then you can start to make a fair comparison...

[merv]

Agreed, I am always amazed at the amount spent on roads doing rather small improvements at big cost. My favourite in that respect was the Southern approach to Foxton where they cut the corner slightly. Who really wanted to arrive 0.0215 seconds earlier into Foxton approaching the 50km/hr zone slightly faster? I can't believe that was a safety issue either because of the 50 zone nearby no-one would have been speeding around that corner anyway would they?

So through road improvements truckers get an improvement while generally joe biker is losing his fun roads to ride on (read curves) that are now more covered in trucks. Spend the money on rail infrastructure and discourage too many from using "our" roads so that they stay as bike friendly rides I say. We'll all miss the 'takas when they are totally straightened which is likely in the next decade or so at the rate things are going.

[The Stranger:Me]

Trucks do untold damage to our roads and pay a fraction of the cost for their repair and maintenance. Rail pay the full cost for any maintenence of the rail network.

What fraction of the cost of damage do they cause and what fraction of the cost of damage do they pay please?

[Flatcap]

If a CFO of a listed company had acted the way Sullen has done...he'd be looking at jail time. Mickey's fucking off with a gold plated pension. Indy? Can I have a lend of your assault rifle when you get it?

Just to make him cry.....not to actually kill him, aye

[MSTRS:Me]

Trucks do untold damage to our roads and pay a fraction of the cost for their repair and maintenance.

Aint that the truth!
And no, we don't want a return to the old 'protectionist' policies. I doubt that anyone wants to see Rail like it was until the mid-80s. Lange and Douglas began the swing to User Pays...which is how it should be...so why is the public still being screwed?

[Tank]

Air NZ may have announced a drop in profits, but the value of the company has essentially remained - not to mention for an airline - it is one of the healthiest in the world - even Emirates is seriously in the red.

Not quite right there. The value of the company has dropped siginifantley and the g'ment is a huge share holder.

Shares at the end of 2006 were $3.10 - they are now at $0.79.

With 1.06 Billion shares thats another 2.5 Billion that has been lost (not all the g'ment of course).

But hardly a fantastic investment.

EDIT: And whats worse is that they borrowed the money to spend on this - so not only is it worth 2.5 Billion LESS - we are paying interest on the entire amount. Which is why (in a nutshell) borrowing for the Cullen fund is a bad idea.

[Marmoot]

I sit here waiting waiting for Skyryder to tell me how this is Nationals fault as well.

The "John Key had a share in the rail company" line?

[Winston001]

Trucks do untold damage to our roads and pay a fraction of the cost for their repair and maintenance. Rail pay the full cost for any maintenence of the rail network.

I'll confess to having romantic feelings about great big strong trains throbbing through the nation. There is a strong economic and environmental argument for using rail for mass delivery. But - its the last mile that matters. All very well getting a ton of oysters from Bluff to Auckland, but they are actually needed at restaurants all over the city - and rail can't do that. Trucks can and do.

I say increase road user charges by a muliple of 5 (except where rail cannot service). Then we will start to see a level playing field between rail and road. Then you can start to make a fair comparison...

Mmmm do you think NZ really needs a huge increase in our transport charges.....? A country slipping yearly down the OECD average. Its tough enough as it is to supply a nation of only 4 million spread over two long mountainous islands.......

Air ships - seriously, there is an answer.

[ManDownUnder]

This plus the ACC debacle. Labour really didn't have any intention of winning the election, now did they.

ACC, Trains, and a couple of other commercial coffin passes to National along with a Global recession. Those personally responsible (I'm pointing at Clark and Cullen) both retire and I'm willing to bet somehow escape personal responsibility.

Key gets the coffin pass, has to make a number of unpopular decisions in order to keep the boat afloat, and things start to shore up just in time for a looming election.

I wonder if this is actually a strategy Labour/the left had intentionally set up? Credit where it's due - it's a clever one if those were their plans!