Councils set to sign rail deal

By SCOTT MacLEOD transport reporter

Auckland councils and Tranz Rail are poised to sign a $112 million deal today that will let the city use train routes for public transport.

The six councils and the rail operator will agree in principle to go ahead with the deal.

Regional negotiators got the go-ahead late yesterday after the Franklin District Council and Auckland Regional Council voted to endorse the deal.

The Auckland city, Waitakere city, Manukau city and Papakura district councils had already approved it.

Under the deal, the councils will pay Tranz Rail $112 million to cede control of its Auckland rail routes. Tranz Rail will then pay back $2 million a year to use the lines for freight trains.

Under a previous plan, agreed to in June, the region would have paid $65 million up-front, plus $2.25 million to $4.25 million a year for 70 years.

That would have given Auckland control of its western rail routes only.

Under the new deal it will also control the main trunk line.

ARC transport director Barry Mein said he expected to see the heads-of-agreement signed by the end of today, leaving some relatively minor issues to be sorted out.

They include agreeing on which party will get some assets such as train stations, and deciding on boundaries.

Tranz Rail leases the routes from the Railway Corporation.

The corporation is yet to agree to scrap its lease with Tranz Rail and let the city take over.

But the biggest problem still facing the deal is whether the councils can raise enough cash.

Infrastructure Auckland has agreed to give $30 million, but the Government's Transfund agency is still deciding whether to give another $35 million.

Those issues will be discussed today at a meeting between city mayors, Transport Minister Mark Gosche and Auckland Affairs Minister Judith Tizard.

ARC transport committee chairman Les Paterson said he would ask whether the Government backed a rapid transport system for Auckland, public ownership of the rail routes, and the region's efforts to buy the routes.

"Obviously a big thing for us is that we need to know if the Government is going to support us in getting the rail corridors into public control, rather than just asking us for more and more buses on the roads," he said.

Some businesses and politicians are still wary of the deal.

Auckland Chamber of Commerce chief executive Michael Barnett urged that options other than rail be examined during today's meeting.

Employers and Manufacturers Association chief executive Alasdair Thompson said most businesses did not understand the rail deal. He said buses looked cheaper.

Prime Minister Helen Clark said this week that the rail deal was relatively expensive, and buses should play a big role in Auckland's future.

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