New Zealand - cutbacks

Yeah, smart one! - just what the country needs, less rail and more roads - LOL
Napier-Gisborne rail line definitely closing
KiwiRail has confirmed it is mothballing the Napier-Gisborne rail line, saying the cost of repairing and maintaining it is too high and it's not making enough money anyway.

Radio NZ,
2 October, 2012



Freight rail services on the line have been suspended since serious storm damage to the northern section of it in March.

KiwiRail chief executive Jim Quinn says that alone would cost $4 million to fix. He says the line lost $2.4 million last year and a review has shown that keeping it going would lose the company between $5 million and $8 million a year.

Mr Quinn says it's unclear what impact the decision will have on staff numbers but a small number of job losses is likely.

The mothballing was flagged in a business case published on KiwiRail's website a month ago, in which the company said neither the full line nor the southern section from Napier to Wairoa would be commercially viable for the foreseeable future.

It denied at the time that mothballing means closure because, it said, it retains ownership and can carry out minimal maintenance.



More passing lanes planned



Meanwhile, the Government has announced it will spend $4 million on installing more passing lanes on State Highway 2 to speed up traffic between Gisborne and Napier.

Napier mayor Barbara Arnott says people would still prefer the money to be spent on rail rather than road and the chair of the Hawke's Bay Regional Council's transport committee, Alan Dick, says the decision is short-sighted.

With quick restoration, Mr Dick says, the line could have been viable by this summer. He says the two cities are export-driven and need efficient, competitive modes of transport.

The general manager of LeaderBrand Produce, Richard Burke, says KiwiRail's decision is the worst possible outcome.

Mr Burke says rail is more efficient than road and he's disappointed the line's full potential is not going to be realised.

Courts overhaul announcement expected

The Government is about to outline plans for a major overhaul of the court system.

Radio NZ,

3 October, 2012

Court staff have been called to meetings this morning, following months of talk about modernising the way they work.

Courts Minister Chester Borrows has described the current paper-based system as old-fashioned.

Judges will move next year to a system called e-Bench, allowing them to manage criminal cases electronically.

Mr Borrows also wants people to be able to have their court matters dealt with by video link from home, or their lawyer's office, should they wish.

Labour says the changes are entirely driven by a desire to cut costs, rather than to improve services, and says it expects significant job losses as a result of replacing people with technology.

Cunliffe says Joyce is on another planet

Economic Development Minister Steven Joyce has dismissed a pessimistic Treasury report on the economy as "grumpy" but the Labour Party says he is on another planet.

Steven Joyce is the man in charge of the deconstruction of the NZ economy

Radio NZ,

3 October, 2012

Having assessed economic data released during September, the Treasury has concluded that strong growth since the start of the year is tapering off and the risks to its economic forecasts are all on the downside.

The economy grew by 1% in the first quarter of 2012 and by 0.6% in the second. The Treasury says it is still set to grow in the last half of the year but not as quickly.

Mr Joyce says the Treasury has previously underestimated growth and he hopes it continues to get the numbers wrong.

But Labour's David Cunliffe says the minister is living on Planet Joyce if he can't recognise the economy is struggling.

Mr Cunliffe says the Government has failed to take the action needed to lift the economy, such as putting skills training in place quickly enough in Canterbury.

Minister sees many positive signs

Earlier on Tuesday, Mr Joyce told Morning Report that companies are winning big contracts, dairy prices are rising at auction, the Christchurch rebuild is gaining momentum and employer confidence about recruiting is positive.

"Probably the biggest issue remains unemployment, that's higher than what we would like and we do want to see further job growth, but actually if you're going to be anywhere in the world right now you'd be struggling to pick a better developed country than New Zealand."

Mr Joyce says niche manufacturers are also doing well, and there are positive signs for the third quarter of the year.