$112m rail deal under scrutiny

By SIMON COLLINS

Auckland mayors and councillors meet today to discuss a proposal to pay $112 million just for the railway tracks and facilities in the Auckland region, not including trains.

Their move comes as the Green Party says the decision by Tranz Rail's controlling shareholders to sell their stakes in the company is a golden opportunity to regain public ownership of the whole rail business for little more than the price of the Auckland deal.

"We should be putting together a publicly owned consortium," says the party's transport spokeswoman, Sue Kedgley.

The Greens want a consortium of public bodies to buy the controlling stake in Tranz Rail that went up for sale on Friday.

The controlling shareholders, Wisconsin Central Rail and Fay Richwhite, have appointed Deutsche Bank to advise on the sale of their shares, currently valued at $175 million.

Ms Kedgley said the consortium could be made up of the Government, port companies, regional councils and Infrastructure Auckland. "I think this is an incredible opportunity to stop the breakup of the whole rail network."

North Shore Mayor George Wood, whose council has already urged the Government to take a controlling stake in Tranz Rail, yesterday also suggested a "partnership" between the Government and the regions to buy the rail business.

An Auckland regional councillor who opposes the $112 million deal, Jack Henderson, said the Wisconsin/Fay Richwhite decision to sell at a time when their shares were worth only $175 million showed that $112 million was too high a price just for the Auckland railways.

But the Government is keeping coy on the issue. A spokesman for Transport Minister Mark Gosche said Mr Gosche was "watching with interest to see who the potential buyers are."

North Shore has been given 10 minutes at today's meeting of Auckland councils to put its case for a public buy-back of the company, which was sold in 1993 for $328.3 million.

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