When is enough going to be enough?
Remember when Michael Cullen dropped $695 millionÂ dollars intoÂ theÂ pockets of Toll Holdings in what he described as the deal ofÂ the century. It is rumoured that the anniversary of the deal is celebrated still by directors of Toll Holdings, such was the awesomeness of the deal for them.
It hasn’t proved to be the deal of the century for the government though, with National having to bail out Kiwirail twice already and now set to pump another billion dollars into what surely must actually be a failed business.
The government is looking at having to pump another billion dollars into KiwiRail over the next four years, Finance Minister Bill English says.
This is on top of the $1 billion the government has already invested in keeping the business going over the last five years, Mr English told a business audience in Wellington this week.
He referred to the long standing difficulties of operating a railway business in New Zealand of a long narrow country, difficult terrain and thin freight and passenger volumes compared with other countries.
â€śYou have to ask which parts of the business make sense,â€ť he said Â Â Read more »