The mayor of the Ruapehu District Council says she intends to lobby the Government to keep part of the rail service in the Central North Island in operation.
Rail operator Toll NZ's announcement yesterday that the Overlander service between Auckland and Wellington would be scrapped at the end of September, with the loss of 35 jobs, has caught residents dependent on the service off-guard.
Ruapehu District Council mayor Sue Morris said: "It's a huge disappointment and a huge blow to the Ruapehu district."
A regional tourism organisation meeting tomorrow afternoon with the council would have the issue "at the top of the list".
"We will get together as a council and do everything we can to try to resurrect some sort of transport by rail.
"It's an integral part of the entire North Island infrastructure."
The economic loss from the cancellation of the service and the benefit derived from having visitors into the area, was immeasurable, she said.
Ms Morris said she was surprised that given the increasing cost of petrol a priority had not be given to the development of a North Island passenger train service.
"People won't have that same opportunity to choose and that's disappointing."
Ms Morris said those hardest hit would be the people who ran cafes and other types of businesses which customers used when the trains stopped off in the towns.
The Station Cafe owner Warren Furner, of National Park, said about four of his eight employees would have to go.
Mr Furner said the train service generated a huge amount of business for both the cafe and town but in the wake of the decision he had already spoken to staff about the impact on his business.
Mr Furner - who is also a councillor on the Ruapehu District Council - restored the historic cafe building nearly four years ago and was approached by Toll Tranz Scenic in February 2005 with a proposal to rebrand the passenger rail service as the Overlander.
"Since then we have been working with Toll through their marketing department, who have done an excellent job trying to rebrand and put a tourist product to the tourism market.
"From all accounts that had received some good reviews from those who use it. I believe Toll need to give this new business venture a fair go."
The economic impact for National Park - with a population of 230 - would be around half a million dollars, he said.
"But wider than that there will be a significant impact on communities right throughout the central north island region, between Hamilton and Palmerston North."
Meanwhile InterCity said it planned to increase the number of its coach services between Auckland and Wellington from 64 to 66 services per week from September 30 when the final train run is scheduled.
The rail service, which started on Valentine's Day 1909, had been outpaced by cheap flights and the convenience of cars, Toll said.
In March last year the company cut several North Island towns from the Overlander's schedule.
- NZPA
Ruapehu mayor to fight to retain rail service
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