Dropping of passenger rail link proposed

Press, 6 July 1983, Page 1

Dropping of passenger rail link proposed

Wellington reporter

The Christchurch-Picton rail passenger service will be axed if the Government adopts a Ministry of Transport recommendation.

A decision on the line is expected this year. The Ministry has confirmed it is one of nine long distance passenger runs it wants withdrawn because of their heavy subsidies. The Christchurch-Picton and Christchurch-Grey-mouth passenger services are both heavily subsidised. The Government paid $95 million in rail subsidies in the last financial year. This included $33 million on the nine passenger services. The Railways Corporation is fighting to retain the services. The Christchurch-Picton passenger service last year cost $66 per passenger to run. The average cost of a ticket was $l6, and the Government paid the remaining $5O. The Ministry of Transport, which pays the subsidy argues that the taxpayer should not have to pay three times the cost of a ticket to keep the service going. It says that social reasons for keeping the service open are hard to find.

Newmans Coachlines has five services a day between Christchurch and Picton, with an adult ticket price of $18.75. It is the only alternative passenger service between the two centres. The present price of an adult rail ticket on the service is $20.50. If the 54,000 passengers who last year travelled on rail transferred to Newmans, the Ministry said, the fare could fall further. The Ministry queries why a large subsidy should be paid when Newmans is profitable and already charges a lower adult fare than rail. It is looking at ways to retain the service but is hard put to find any. General cost-cutting policies would be spread too widely over the national network to reduce subsidies much on the service. Equipment used on the service is also nearing the end of its economic life. The freight service on the line is not in doubt. It runs

at a profit and would not be closed. Revenue provides only 26 per cent of the cost of the Christchurch-Picton service. It provides for 27 per cent of the cost of the Christ-church-Greymouth passenger service. Those the Ministry has recommended be dropped in the North Island are the Silver Star and the Northerner, both Auckland-Well-ington overnight services. The recommendation also includes the day railcar service between the two centres, the Wellington-Napier-Gisborne service, and the WellingtonPalmerston North service through Wairarapa. In the South Island, the Greymouth-Rewanui and the Southerner services are also recommended for ingThe Southerner, between Christchurch and Invercargill, is subsidised by the Ministry at a rate of $54 a passenger. The Christ-church-Greymouth service subsidy rate is $44.