KEY POINTS:
An extra $121 million will be spent on improving the rail system in the current financial year, Finance Minister Michael Cullen said today.
The Rail Development Group had recommended that more than $1 billion be spent over five years on the replacement of locomotives, rehabilitation of key parts of the network, upgrading information technology and creating freight hubs, Dr Cullen said in a speech at Auckland.
"I am delighted today to announce that as a first instalment, the Government has committed $121 million for rail industry improvements in the current fiscal year over and above previously forecast spending," Dr Cullen said.
The Government initially injected $80 million into KiwiRail after its purchase to keep operations at their current level in the immediate future.
The KiwiRail Board will be expected to report early next year on their view on their investment and funding needs for the remainder of the five year capital programme.
- NZPA
