Truck lobby wants review before cash goes to rail

A trucking industry lobby group wants the Government to conduct a detailed review of Tranz Rail before it commits more public money to the company.

The chief executive of the Road Transport Forum, Tony Friedlander, says an inquiry should establish which parts of Tranz Rail are viable before it receives more subsidies.

If public money is going to be spent on rail, he says, it should at least be carefully scrutinised.

"The public needs to understand where its money is going, what it will provide and how big the commitment of road user funds or taxes may become."

He wants an inquiry similar to that the Government undertook before it bought into Air New Zealand.

The Government's land transport plan, announced in February, allocated $30 million for alternatives to roading next year, in addition to $9 million allocated this year.

Most of the money comes from higher road user charges and petrol taxes.

Friedlander says to that sum can be added existing passenger transport subsidies, the $81 million Tranz Rail received for the Auckland rail corridor and cash from any future sale of Tranz Rail's Wellington passenger business.

Tranz Rail spokesman Alan McDonald said the Government's encouragement of rail was based on rigorous analysis of social, economic and environment outcomes.