1. JEANETTE FITZSIMONS (Co-Leader—Green) Link to this
to the Minister of Finance
Can he confirm that tourism is our major export earner; if so, does he wish to review his comment in the House yesterday that “We do not export anything via the Overlander.”?
Hon Dr MICHAEL CULLEN (Minister of Finance) Link to this
Yes, it is, only because of course agricultural exports are not combined; they are disaggregated. If they were combined, then easily agricultural exports would be our largest export earner. No, I do not wish to revise my answer from yesterday. The key word there is “via”. I was referring to the carrying of New Zealand goods to the market.
Jeanette Fitzsimons Link to this
Is he aware of a 400 percent increase in passengers, largely tourists, achieved on the Tranz Alpine line as a result of good marketing, and what will he do to help negotiate a package that will help the Overlander to achieve the same success?
Hon Dr MICHAEL CULLEN Link to this
I appear to have done so already. The announcement of the closure of the Overlander has led to a large increase in bookings until the point of closure.
Peter BrownWill the Minister take this opportunity of clarifying his position: will he seriously consider a proposal from Toll that requires a modest subsidy for a short period of time, providing he receives a properly constructed business plan?
Hon Dr MICHAEL CULLEN Link to this
In the extraordinarily unlikely event that Toll made that offer, I would seriously consider it. What I have received is an offer of an ongoing, in perpetuity, subsidy, which, given our experience with the current contracts on rail access, would no doubt be sought to being revised subsequently in Toll’s favour very substantially.
Sue KedgleyHow does the loss of the only long-distance passenger rail service in the North Island fit in with the Government’s National Rail Strategy, which commits the Government to “retaining the existing rail network” and “maximising the use of rail transport in New Zealand”; and why would the Government not consider a 2-year package such as has been proposed by the Green Party, rather than an indefinite subsidy?
Hon Dr MICHAEL CULLEN Link to this
I thank the Green Party for its offer, but it is not Toll. Toll has not made that offer.
Would the Minister consider subsidising the service at a modest level for a short period of time if he receives a properly constructed business plan from an additional operator, other than Toll?
Hon Dr MICHAEL CULLEN Link to this
In order for that to happen, the Overlander service must cease. That is part of the conditions of the current track access agreement with Toll.
I raise a point of order, Madam Speaker. I think we accept that the Overlander service will cease, but I am asking a specific question: would the Minister receive positively a proposal from another operator, albeit a few weeks or months after the Overlander service ceases?
Madam SPEAKERHon Dr MICHAEL CULLEN Link to this
I am happy to comment further. I have not yet ruled out any further renegotiation with Toll. Mr Mike Lee of the Auckland Regional Council met with Toll today. Apparently at that meeting no progress was made, but Mr Lee is continuing work. I will certainly consider any approach around a new tourism-based venture that looks to have a likely chance of success, but I think also those regional councils that have been showing an interest should also come to the party. Everybody is keen to spend the Government’s money and to offer it up on their own platter.
Keith LockeWill the Minister admit that he was wrong yesterday to complain about the Auckland Regional Council charging $200,000 a year for the Overlander to be at the Britomart rail terminal, when the council said today that it has subsidised the Britomart access fee from between $95,000 to $122,000 a year, and will he discuss with the Auckland, Waikato, Manawatū, and Wellington regional councils their proposal for a joint Government - local government financial rescue package to keep the service going while its long-term viability can be established?
Hon Dr MICHAEL CULLEN Link to this
In answer to the first part of the question, yes. As to the second part, I have received no proposal from regional councils to subsidise the Overlander. I have received proposals that we should subsidise the Overlander.
I seek leave to table the Government’s National Rail Strategy, with its commitment to retaining the existing network and maximising the use of rail transport.
I seek leave to table a statement issued today by Mike Lee, the chairman of the Auckland Regional Council, which proposes a joint financial rescue package that I presume both Government and local government would contribute to in order to save the Overlander service.