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    1. Yes Martyn,

      Treasury has never thought very cleverly have they?

      Remember when treasury said in John Key and Steven Joyce’ time that our whole rail system should be shut down’??????

      https://www.rnz.co.nz/news/political/278359/close-down-rail,-advised-the-treasury
      6:08 pm on 9 July 2015
      New Zealand
      World
      Politics
      Brent Edwards, Political Editor – brent.edwards@radionz.co.nz

      The Labour Party has accused the Treasury of being “nuts” for suggesting the country’s rail network should be closed because it costs too much.

      In Budget documents released today the Treasury estimated the net social cost of supporting KiwiRail at between $55 million and $170 million a year.

      In the paper the Treasury recommended the Government just fund KiwiRail for one more year while undertaking a comprehensive study to look at closing the rail company.

      It said the study should be done publicly so that people were informed of the costs of running the rail network compared with any benefits it provided.

      The Government rejected the idea.

      Labour’s transport spokesperson Phil Twyford criticised the Treasury for even raising the suggestion.

      “This proposal by Treasury for the Government to consider actually shutting down the rail network is just nuts and it shows that Treasury doesn’t really understand transport economics and they certainly don’t get rail.

      “You know rail should be for decades and decades to come, it should be alongside the road system, the backbone of New Zealand’s transport system … To shut down, even to contemplate shutting down this valuable part of our nation’s infrastructure is barmy,” Mr Twyford said.

      While government ministers rejected the idea initially they only intended providing money for KiwiRail for this financial year.

      But a later paper reveals it agreed to a two-year funding commitment after the company expressed worries about its long-term planning if it had only one year of funding confirmed.

      In its analysis the Treasury said rail had high fixed costs and it faced a challenge trying to reduce them.

      It said the options for the business were to make relatively small changes to the existing network or significantly downsize it, including closing it altogether.

      Another option was to shut down most of its operations but keep freight business for Auckland to Hamilton to Tauranga only as that part of the network carried most freight and covered most of its costs.

      It warned KiwiRail posed considerable risk to the Government and was unlikely to ever be profitable.

      “Treasury believes there is a net economic cost of continuing to fund rail at the levels required. The net social cost is estimated at between $55 million and $170 million per annum based on a national cost benefit analysis.

      “Whilst some of the assumptions underlying analysis of this nature are subjective and some require further work to validate, Treasury believes that it will not change the conclusion that there is a net social cost of continuing to fund rail.”

      It recommended a public study of the implications of shutting KiwiRail down so the Government could make the most informed choice possible.

      Phil Twyford said he agreed there should be an in-depth study on the value of rail to the economy.

      Mr Twyford said the fallacy in the Treasury thinking was that the rail system, including the rail tracks, should be run as a profit making business. Nowhere in the world did that happen.

      He said the rail tracks were simply like the country’s roads and nobody expected the roads to make a profit.

      A spokesman for Finance Minister Bill English said the Government had set aside $400 million for KiwiRail over the next two years.

      “But before undertaking an investment of this size, it is appropriate that officials look at all options – including options for line closures.

      “As we said in May, the Government is committed to a national rail network, but ongoing subsidies of around $200 million per year are unsustainable. The funding provided at the Budget gives the KiwiRail board a two-year window to identify savings and reduce the level of ongoing Crown funding required,” he said.

  1. Agreed Bomber, someone on his team collated publicly available treasury information that is true, but for this piss-ant Bridges to release it goes against everything our government has ever stood for (information security and embargo, economic stability, political ethics). Bridges could have advised the treasury and government of the website malfunction without claiming victimhood and looking like a breathless child, and the government could have given Bridge’s team the kudos for doing so. Instead the opposition now looks like a spiteful pack of hyenas embedded at every level of society willing to disrupt information systems by any means to further their cause. Bridges should have been long gone, for the JLR revelations (possible donation corruption), for calling one of his MPs fucking useless, etc. The circus we saw played out with treasury won’t survive a news cycle, I’m waiting for the decision on Sarah Dowie telling JLR to die, which has real repercussions for politics, digital communication and free speech.

    1. I have no doubt that Natzi supporters will be absolutely chuffed that their team scored a big win over the hapless lefties. Expect Bridges to milk this to an unbelievable degree which will further boost the next poll and possibly cement his position going forward. But does anyone out their actually care about budget leaks caused by some IT expert leaving the door open. Unfortunately we will never here the end of this.

  2. Gross incompetence from treasury, government (Winston and his “illegal” bullshit), the opposition -Simon bridges semi literate outrage, following on from mallards false rape accusation.
    Sack the fucking lot of them, let’s start again.
    In the private sector these idiots wouldn’t last 5 minutes.
    They run the country no wonder it’s so messed up.

  3. There are far too many employees in the public sector, including ( and especially) Treasury,who are by background and inclination, supporters of National and who find it convenient to ignore their contractual obligations to remain politically unbiased -yet another hurdle for a social democratic government.

    Makhlouf is shortly off to Ireland.

  4. For Jacinda to sack Grant would be shooting self in foot/cutting off nose to spite face/hoisting self on own petard. That is to say, unwise.

  5. The comment above regards Kiwirail and Treasury raises the issue when this government got Treasury to investigate serious safety defects built into new KiwiRail bridges and the Treasury offical tasked with this was going to investigate by ‘catching up with mate for a beer and a chat on a Friday night’. Turns out that the KiwiRail officials that neglected to prevent the safety defects being built into the bridges have the ‘ear’ of that same Treasury official. Nothing to see here.

    Still KiwiRail have a new CEO now and a new Board Chair; they have always had a lot of risks with their ageing infrastructure so they could be a big winner in this budget. They might even stop building ‘booby trap’ bridges.

  6. Aaaand they’ve used a picture on the front of the budget, of a solo mum and child but turns out the lady in the pic moved to Australia last year with kid as couldn’t make ends meet in NZ, have “found wellbeing in Australia”. Story on NZ Herald
    So much dumb from treasury and minister/s.

  7. Heads must roll on this. It is unacceptable. Robertson crying ‘foul’ before checking things out was a knee-jerk reaction that is unbecoming at anytime, Jacinda does not need that kind of incompetence. Treasury . . . what more can be said? Incompetent, complacent, the list goes on. Did the Nats have insider info? “If you just happen to be looking at the Treasury website, maybe around (whatever) am/pm, there just might be a preview of the Budget available briefly, but of course, we will disavow any knowledge of this course of events.” As for Bridges, no doubt he will be trying to get as much milage out of this matter for as long as he can, but all he is really doing, is showing how petty and pathetic he is.

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