3. Hon MARK GOSCHE (Labour—Maungakiekie) Link to this
to the Minister of Finance
Has he received any recent reports relating to investment in rail?
Hon Dr MICHAEL CULLEN (Minister of Finance) Link to this
Yes. I have reports showing widespread public support for the Government’s decision to purchase the rail operator and to establish KiwiRail. I have also seen reports showing public concern about National’s refusal to give a firm commitment not to sell off KiwiRail at some point in the future.
Hon Dr MICHAEL CULLEN Link to this
I have seen various reports showing that in 2002 and 2003 as Minister of Finance I was asked both written and oral questions by, and received Official Information Act requests from, Mr John Key relating to the Government’s decision to invest in the rail network. Last night I saw a report showing that during that time, contrary to his previous assurances to the House and the New Zealand public, and despite making no disclosures of interest, Mr Key was purchasing shares in Tranz Rail.
Hon Bill EnglishCan the Minister tell Parliament why he paid for Toll Rail almost twice as much as the best official advice he could get on its valuation, and does that mean that because it is other people’s money, he is happy to be reckless with $350 million?
Hon Dr MICHAEL CULLEN Link to this
As he sits next to a past money trader, the member should not talk about being reckless with other people’s money. But coming to the point of the matter, I say that half of the purchase price for the Toll operation was to buy it out of a contract that would have led to ever-growing subsidies being paid to an Australian operator that was repatriating profits back to Australia.
Hon Jim AndertonHas the Minister of Finance seen any reports that when New Zealand Rail was sold by the National Government, it sold it for less than the price of the wooden sleepers on the tracks?
Hon Dr MICHAEL CULLEN Link to this
That is certainly correct. The value of the business was vastly greater than was paid for it at the time, but subsequent asset-stripping occurred by a succession of foreign-dominated owners. Only New Zealand ownership, and Government ownership, with a long-term programme of investment will realise the full potential of rail.
What reports has he received on investment in the rail network, as opposed to that in the rail operator?
Hon Dr MICHAEL CULLEN Link to this
I have seen reports that show that just like it did with the purchase of the rail operator, National initially opposed the purchase of the rail network. Of course, it is now apparent that at the time that Mr Key was leading the opposition to that investment, he had been trading in shares in Tranz Rail.