Auckland needs break on rail costs, Government told

Auckland regional politicians fear ratepayers will be unfairly burdened unless the Government abandons plans for its rail track agency to recover full costs.

The Auckland Regional Transport Authority says attempts to recover full costs of running railways overseas have failed and wants the idea scrapped.

Its submission on the Rail Network Bill to a parliamentary select committee this week won support yesterday from the Auckland Regional Council's transport committee.

Committee chairman Joel Cayford raised concern at the differing ways by which state highways and railway lines are paid for.

Although the Government pays for building and maintaining state highways, Auckland and its ratepayers must share costs of running the rail network through the region. Rail freight operator Toll Holdings also pays a contribution but regional councillor Bill Burrill noted that it enjoyed a fixed fee. He said this meant ratepayers would have to pay a disproportionate share under a full cost recovery regime.

The regional transport authority already pays more than $4 million a year track maintenance, and is trying to negotiate a long-term access agreement with the Railways Corporation. It is also budgeting $144 million to upgrade of signals and train control over five years.

The authority says in its submission that the new legislation should clarify whether $200 million, which the corporation received from the Government last year to buy back the rail network from Toll, should be recovered and whether cost over-runs of projects managed by the agency should also be passed on to rail operators.

It also says a proposal for the agency to pay tax will prompt it to seek a higher return from the operators.