A business case seeking government support for the Capital Connection commuter train has been submitted by Horizons Regional Council and a number of lower North Island councils.
The Capital Connection is seen as a vital daily link between Palmerston North and Wellington, with rail travel a viable investment option over the next 40 years.
The business case was presented to Minister Simon Bridges by local government representatives of a passenger rail working group consisting of Horowhenua, Manawatu and Kapiti Coast District Councils, Palmerston North City Council, Greater Wellington Regional Council and Horizons.
Horizons committed $500,000 in 2015 over three years, added to by Greater Wellington Regional Council with a similar amount, to subsidise the service running at a loss due to increased operating costs. The business case is seeking central government funding of $6.2 million over the next three years while longer term options can be developed.