More public money shovelled into the KiwiRail firebox to help the environment

Point of Order

The  poor old taxpayer who  poured more than  $1bn into   state-owned  KiwiRail during the term of the  National  government  is  being hit up  for  another $35m   to reverse the decision taken  two years  ago to  ditch the  North Island  electric locos  and  replace them with diesel-powered engines.

The Ardern-Peters-led coalition has decided to refurbish the 15  units in  the electric fleet — even  though the   argument  to replace  them  was “compelling” .

While  the  government  now  says it is keeping electric locomotives on the North Island Main Trunk Line running to help meet its long-term emissions goals and boost the economy,  KiwiRail  earlier  said it was essentially running “a railway within a railway” by having the electric section.  (The North Island Main Trunk runs from Auckland to Wellington but is electrified only between Hamilton and Palmerston North). The doubling up of service facilities, inventory, training and maintenance required with…

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This entry was posted in applied price theory on by .

About Jim Rose

Utopia - you are standing in it promotes a classical liberal view of the world and champion the mass flourishing of humanity through capitalism and the rule of law. The origin of the blog is explained in the first blog post at https://utopiayouarestandinginit.wordpress.com/2014/03/12/why-call-my-blog-utopia-you-are-standing-in-it/

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