KEY POINTS:
Speculation that the Government is considering buying train operator Toll New Zealand has resurfaced, and the Government says this is one of several options still open.
The Australian-owned train company has been locked in negotiations since 2003 with Finance Minister Michael Cullen over the access fee it should pay to use the Government-owned rail tracks.
Dr Cullen has been frustrated about the length of time the talks have taken, and yesterday there was renewed speculation he might be considering buying the train operator.
The minister refused to comment on what he said was a confidential commercial negotiation, but his office confirmed that all options including a purchase remained on the table.
That appeared to be a surprise to Toll Holdings managing director Paul Little, who last night told the Herald he did not know of any talks with the Government about the possibility of an outright purchase.
"We've been in discussions for quite some time about access to the track and charges that will be levied on us, and certain undertakings that were made at the time we did the original transaction."
There had been a couple of those discussions in the past two weeks, Mr Little said.
"I have no knowledge of them broadening out into a complete buyback."
Sources suggested that the business could be difficult to value without a rail access agreement.
It was also difficult to value because it was no longer listed on the local stock exchange, and the company ran other non-rail businesses.
Some have said the rail business is close to worthless, but could make money if it obtained cheaper access to the rail tracks.
But a purchase could be seen as a political plus for Labour because it could then say it was investing in infrastructure.
Large rail customers and Ontrack - the state-owned enterprise that owns the tracks - have been urging Dr Cullen to buy the New Zealand subsidiary of Toll Holdings.
National Party finance spokesman Bill English said Dr Cullen should come clean on the persistent rumours.
"Talks have clearly been at an impasse for some time and this is reducing much-needed investment from both track maintenance and trains," he said.
"It would be in the Government's interest and the community interest to clear up what is going on."
Toll has told the Government it cannot afford to pay the fees it is asking, or even what an independent arbitrator found was reasonable.
As a result, Ontrack has a reduced amount of money to spend on track maintenance and upgrades.
- HERALD REPORTERS, NZPA
