National prepping KiwiRail for sale

News that KiwiRail is looking to shed hundreds of jobs in the next few months makes it patently obvious that the National-led Government is prepping it for sale, says Labour's SOEs Spokesperson Clayton Cosgrove.

"It's a case of going, going, gone with this Government. They have already put our power companies and airline on the auction block. Now they are softening Kiwis up to accept the eventual sale of our rail company.

"KiwiRail is a strategic asset. It is a difficult infrastructure but it is essential to our economy not only in terms of competition with road transport for freight, but also for our regions in accessing products and services, ” Clayton Cosgrove said.

"What we are seeing is a restructuring of that asset – where the best parts of it are being carved off while at the same time wholesale staff cuts are being made in a short-sighted bid to supposedly save money.

"This is part of a process being used by the Government to convince New Zealanders that KiwiRail is no longer a viable company and therefore should be sold off to private interests. It's a case of history repeating itself.

"The Government should be supporting KiwiRail, not setting it up for sale," said Clayton Cosgrove.