Former Minister of Railways Richard Prebble is correct in saying that the rail network should be funded by the NZ Transport Agency out of the national land transport fund.
KiwiRail needs to be split into three separate entities to be funded in a more realistic sustainable model, with the NZ Railways Corporation being responsible and funded for the rail infrastructure and network in the same manner as the NZTA is for the State Highway network.
The rail freight operation should become a separate SOE and the rail passenger and ferry operations should be funded as a standalone nationwide public transport operation, with each paying rail user charges, along with any other rail operators, to use the rail network. Doing this would put road and rail on a level playing field.
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