Backwards Government policy to blame for KiwiRail job losses

KiwiRail's decision to fire up to 220 workers is the inevitable consequence of National's ideologically-driven transport strategy, Green party Co-leader Russel Norman said today.

"Today's move is another kick in the guts for workers and sustainable transport from the National Government," said Dr Norman.

"These job losses are the result of National under-investing in rail and wasting money on useless motorways.

"National has never displayed any commitment to KiwiRail. It has under-invested in rail upgrades and let valuable rolling stock contracts go offshore," said Dr Norman.

The KiwiRail consultation document says "the earnings we retain are not far enough ahead of our expenditure once government funding ends" and, as a result, "we need to reduce the people budget by $14m or 20%".

"The KiwiRail document clearly blames lack of sufficient investment from the Government for the cost-cutting that could see over 200 skilled jobs lost," said Dr Norman.

"Rail is a central component to a smart, green economy. It is core infrastructure for our future prosperity.

"An enhanced rail network would create jobs, reduce our carbon emissions, and help to wean New Zealand of its $8 billion a year addiction to imported oil.

"Instead of investing in rail, National is pouring $12 billion into low and negative value motorways that won't help the economy and will leave New Zealanders lacking modern, clean transport alternatives.

"The blame for these job losses can be laid squarely on National's 1950s-era transport policy and its failure to invest in a modern rail network," said Dr Norman.