|
The Government's bid for a controlling stake in Tranz Rail is the Wairarapa's best chance of avoiding the risk of some economic derailment, says Wairarapa MP, Georgina Beyer.
Last Friday, the Government moved to sign a Heads of Agreement to buy the rail network for $1 and take a 35 percent stake in Tranz Rail for $76 million, subject to approval by the rail company's board and shareholders.
"Tranz Rail was in a financial melt-down and the proposal from the Government provides some hope of security for the rail network in the Wairarapa," said Ms Beyer.
"Tranz Rail was facing collapse. Even short-term disruption to freight services could have created havoc for towns such as Dannevirke, Masterton and Featherston and regions like the Wairarapa and across New Zealand.
"Keeping freight moving by rail is a key component in the region's development.
"Given the important role that Tranz Rail plays in moving freight around New Zealand - and minimising the number of trucks on the road - it is crucial that the freight trains keep on rolling," said Georgina Beyer.
"For these reasons alone, the Government's move to protect the rail network from collapse is very welcome.
"It is, however, somewhat premature for people to start speculating about the government's bid for the rail network leading to a resumption of lost passenger services. For a start, the offer needs to be accepted.
"There will be some wide-reaching ramifications flowing from the government's proposal to buy the rail network and Tranz Rail's surrendering of its lease to the land under the tracks.
"For now, it's in the Wairarapa's interests and the nation's for the offer to be accepted so as to secure an improved future for our rail network," said Georgina Beyer.
|
|
|
