Bolger to head KiwiRail

CRAIG SIMCOX/Dominion Post

CAPTAIN JIM: Former PM Jim Bolger is to head up KiwiRail, the new state-owned rail and ferry network.

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As tipped, former prime minister Jim Bolger has been confirmed as the head of the new state-run railway system, which reverted to government control earlier today.
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The renationalised rail system is to be called KiwiRail and will be run by an establishment board under Mr Bolger.

In May the Government and Toll announced a heads of agreement for the Government to buy Toll's rail and ferry assets for $665m. There were another $25m of associated costs.

The KiwiRail establishment board would manage the service until decisions about how it would be run were made. The Government already has a separate state owned enterprise OnTrack to look after the tracks.

Finance Minister Michael Cullen said a Rail Development Group would report to him and State Owned Enterprises Minister Trevor Mallard in early August with recommendations for the structure and management of the rail business. Cabinet would then make decisions.

Dr Cullen said options ranged from a single SOE including OnTrack and KiwiRail as separate divisions to a separate crown entity and SOE.

"New Zealand's rail network is now back in New Zealand's hands," Dr Cullen said.

"We will now be able to make the investments necessary to develop a world-class 21st century rail system for New Zealanders."

He said potential reconfigurations in Auckland and Wellington would see changes to maintenance and storage to cope with more stock for metro areas.

Also on the board with Mr Bolger, who chairs Kiwibank and New Zealand Post, were Brian Corban, Mark Franklin, Ross Wilson, Brian Jackson, Linda Constable and Ross Martin.

Prime Minister Helen Clark said government ownership would allow it to make strategic decisions and investments to help rail make New Zealand more sustainable.

- NZPA