Bolger to head KiwiRail
Relevant offers
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.
Blog: Is Ruth’s hair standing on end?
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
Sponsored links
Principal accused of sunburn bribe
Teen 'will go to jail' rather than give up injured dog
Woman found guilty of Valentine's Day murder
Samoa tsunami: A therapeutic response
Kong movie ship scuttled in strait
Liberty Templeman's parents tell of search for murdered daughter
Radar 'drone' units used for three years
Outrage as Key signals national park mining
Ex-All Blacks star apologises for groping teenager
Police chase in South Canterbury
Toyota apologises as Prius recalled
Teen 'will go to jail' rather than give up injured dog
Kong movie ship scuttled in strait
Ex-All Blacks star apologises for groping teenager
Pattinson sex scenes 'disturbing'
'Very white' Australian rugby cops criticism
Daily trivia quiz: February 10
Fantastic panoramic of Taranaki
Outrage as Key signals national park mining
Liberty Templeman's parents tell of search for murdered daughter
Teen 'will go to jail' rather than give up injured dog
Key confirms GST increase being considered
A pass for Key, but much more to do
Sanzar and Sky decide it's time to titillate the fans
Time for young gun Aaron Cruden to fire
Should conservation land be opened to mining?
Related story: Outrage as Key signals national park mining