Future of rail worries group

Press, 22 June 1987, Page 9

Future of rail worries group

PA Wellington A recently formed transport lobby group is concerned that the $3O million cut in rail subsidies will mean losses of passenger services. It was announced in last week’s Budget that subsidies for long distance and urban passenger services would be cut from $5O million to $2O million.

The group, Transport Futures, said this cut needed more explanation. A spokesman, Mr Bruce Taylor, said the cut could lead to the loss of many urban rail services if local bodies were unwilling to pay more or passengers refused to pay higher fares.

“It could also lead to the axing of the few remaining long distance trains if they don’t break even in the next 18 months as the Railways Corporation plans,” Mr Taylor said. The Minister of Railways, Mr Prebble, and the Minister of Finance, Mr

Douglas, said last week that Railways would be financially restructured next year. They indicated also that the Government would consider taking over the $lOO million debt facing the corporation for electrification of the main trunk line.

“When Railways’ restructuring programme is complete, previous subsidies paid by way of social service payments will no longer be necessary,” the Ministers said. Mr Taylor said it was not clear from the Budget statement whether the Government would allow the Railways Corporation to drop services if they did not cover costs. “And we remind the people that the Labour Party promised in 1984 to ‘save rail’ and to retain long distance passenger trains,” he said. The group said a statement clarifying the future of rail passenger services was urgently needed from Mr Prebble.