How much fiscal saving, by year, does the Government expect to achieve from the $200 million reduction in rail network funding, and how does this compare with the projected long-term increase in asset replacement costs caused by deferred maintenance?

Answer

The total spending is on par with the first Rail Network Investment Programme at approximately $1.3 billion over three years. We did not 'reduce' network spending, we requested KiwiRail deliver better efficiency in its spending by balancing the need to deliver renewals with maintaining use of the network, where the benefits of renewals are attributed. As the previous Government had not fully funded the Rail Network Investment Programme, and we believe in efficient services, we set a target for more efficient spending while maintaining the work. KiwiRail delivered on this target. The per year change was not specified, but the bulk of the $20 million saving came from the second and third years.