Rail plans get double knock

By PHILIP ENGLISH

The $65 million cost of opening up Auckland's rail corridors for improved public transport may be going up by millions at the same time as support for the total deal between the region and Tranz Rail suffered a knock yesterday.

Auckland political leaders have yet to reveal details of an additional $47 million that has been considered as part of the $65 million deal with Tranz Rail.

The extra payment is understood to replace a proposed annual levy of $2 million a year, payable to Tranz Rail for the use of The Main Trunk Line south of Auckland Central.

It is understood the $47 million was not mentioned at an Auckland Regional Council briefing of Auckland Labour MPs last night.

The knock in political support for the existing $65 million deal came from the deputy chairman of the ARC transport committee, Jack Henderson, when he withdrew his backing, saying it could lead to the break up of the New Zealand rail network.

Mr Henderson said his decision would not affect majority support among fellow members of the regional passenger transport committee included in negotiations over the rail corridors, but they would no longer be able to claim consensus.

However, his rejection of the deal might attract followers from the Auckland political group, City Vision, which is influential on the Auckland City Council.

It is understood ARC negotiators have offered Tranz Rail $47 million on top of the $65 million deal agreed to in June.

Then, the deal included a $2 million-a-year payment to Tranz Rail for passenger use of the Main Trunk Line.

The latest $47 million option, which ARC officials could not be contacted about yesterday, is to replace the annual payment and it will leave Tranz Rail still able to negotiate use of the corridor.

Mr Henderson said that apart from concern that the $65 million deal contained no guarantee that publicly owned passenger services would run on the corridors, he was also concerned that it could lead to the break up of the national rail network and the privatisation of rail sectors.

"As time goes by and as the environmental benefits of rail passenger travel and rail freight become more apparent, we are going to need as much control over the national rail system as we can get.

"I mean can you imagine selling off chunks of the road network to different companies up and down the country? ... This might not happen, but at the moment I am not satisfied about it."