﻿Mr SPEAKER: The House comes to Questions for Oral Answer.
Question No 1, Phil Twyford.
PHIL TWYFORD (Labour—Te Atatū) to the Minister for State Owned Enterprises:
What reports, if any, has he received about KiwiRail’s plans
to get rid of electric locomotives on the North Island main trunk line
and replace them with diesel locomotives?
Hon TODD McCLAY (Minister for State Owned Enterprises):
I have not received any reports on KiwiRail’s review
of its locomotive assets.
However, I am aware that KiwiRail has put out a statement, which said:
“As with any responsible business operator, KiwiRail has a continuous process
"of asset management. The EF class of locomotives have reached the point
"that a review of their future is required. They are performing poorly
"and this is beginning to impact on our operations,
"so we are currently reviewing their future.” It is my expectation
that KiwiRail reviews any asset that may not be performing well,
to ensure that it continues to meet operational requirements.
However, I also note from the KiwiRail statement
that no decision has been made.
Phil Twyford: Why was he not told by KiwiRail’s board,
under the no-surprises policy, about its proposal to implement
dirty diesel on the North Island main trunk line,
putting hundreds of jobs and billions of dollars
of infrastructure in jeopardy?
Hon TODD McCLAY: I am informed by the statement that KiwiRail put out
that no decision has been made yet, so the member is speculating.
This is a decision and consideration for the KiwiRail board.
When it has made a decision, it will signal that to us.
Phil Twyford: What is his view about the consequences of a proposal
that would put at risk billions of dollars’ worth
of electrification infrastructure, based on the assumption
that if electrification infrastructure is not used,
it will have to be removed from the line, and has he told
the Minister of Finance about that possibility?
Hon TODD McCLAY: The Government’s commitment to KiwiRail is clear.
Since 2008 we have invested $1.3 billion in this.
When one considers the amount that was spent
by the previous Labour Government to buy KiwiRail—
and it spent too much of it—more than $2 billion has been spent.
We expect KiwiRail to run its business efficiently,
and I think that taxpayers have a right to expect that KiwiRail
will consider the very best way to deliver service in that environment.
Phil Twyford: How does dirty diesel on the main trunk line
square with his Government’s commitment to reduce carbon emissions
in the transport sector at a time when every other country
is trying to reduce its reliance on fossil fuels and increase
electrification in the transport system?
Hon TODD McCLAY: I repeat, again, that no decision has been made.
Firstly, I expect KiwiRail to assess all of the options,
including environmentally. Secondly, I think this Government’s commitment
to renewables is beyond question.
Almost 80% of electricity generated in NZ is renewable.
I expect KiwiRail, on behalf of the taxpayer, to run its business
efficiently and effectively, and that is what we are waiting for it to do.
Phil Twyford: Why is he allowing KiwiRail to buy cheap Chinese
diesel locomotives when the last lot of cheap Chinese
electric locomotives have spent months in the workshop laid up
with mechanical problems and asbestos contamination,
and the cheap Chinese rolling stock has had equally disastrous consequences?
Hon TODD McCLAY: The Government, on behalf of the NZ taxpayer,
has invested $1.3 billion in KiwiRail since 2008.
I do not think that anything it is doing is cheap.
Phil Twyford: I seek leave of the House to table a letter
from KiwiRail management to staff about the dirty diesel plan.
Mr SPEAKER: I will put the leave. Leave is sought to table this letter.
Is there any objection?
[Interruption] Order! There is objection.
Question No 2.
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