Steven Joyce backs TranzAlpine train

More money should be pumped into the TranzAlpine passenger train, Transport Minister Steven Joyce says.

A day after saying he wanted to axe KiwiRail's $90 million taxpayer subsidy

"as quickly as possible", Joyce said yesterday he did not mean there should be cuts to services such as the TranzAlpine.

He said the tourist trip between Christchurch and Greymouth was one of the top train journeys in the world.

"If anything, I'd like to see them look at ways to develop it further, to make more money. I would have thought it was the same for the TranzCoastal [Christchurch to Picton]," he said

"I think there's a range of things they could do to possibly invest further in them."

Christchurch & Canterbury Tourism chief executive Christine Prince said Joyce's comments were positive.

"We know that rail travel is extremely popular, but there's certainly always room for investment and upgrading," she said. "We think [the TranzAlpine] does have a lot more potential."

In March, the Government announced a $115m boost for 20 new locomotives and 17 passenger carriages for the Tranz Scenic fleet, which includes the TranzAlpine and TranzCoastal.

Labour rural affairs spokesman Damien O'Connor said plans to axe the KiwiRail subsidy would put provincial rail lines at risk and could increase transport costs for farmers.

"KiwiRail was significantly underfunded when it was sold off in 1993 and its buyback and the current subsidy are necessary to rebuild it after years of neglect," he said. "The last thing rural New Zealand needs is for another concerted attempt to be mounted for it to be run down again so National can sell it off cheaply."

Federated Farmers vice-president Donald Aubrey said the loss of provincial lines would be a loss for agriculture because it would reduce the available transport options.

He said the Government should ensure rural New Zealand was given a "fair go".

Joyce said it would cost more to close rural lines than to keep them open.

- © Fairfax NZ News