When asked if the Governments buyback of the rail system from Toll would have any effect on access to our land I had to think hard of the possible implications and the reasons behind the massive tax funded purchase of an asset that had been sold off years previous.

It seemed obvious to me that if the government was prepared to spend so much on the railways they must have some idea on how to justify the expense. I don't believe that their primary concern was the subsidies that were being paid to Toll.

When I looked at the implications of the carbon trading scheme, the countries obligations under the Kyoto protocol and the energy ratio of rail freight versus long haul trucking I realised what the plan was.

To transport the same amount of goods by train is up to eight times more efficient than by truck. With the recent rises in fuel price and no end in sight this alone makes a compelling argument. But how will the government 'persuade' those involved that rail is a better option? Well, because heavy diesel vehicles pay a road user tax based on weight and distance travelled. If that tax were increased then it would tip the balance even further in favour of rail transport.

It is also worth considering the emissions (remember up to 8 times more emissions for trucks) that are generated as part of the transportation process. Under the Kyoto protocol, New Zealand has an obligation to reduce it's emissions to 1990 levels by 2012 or make up for the difference. The estimate of New Zealand’s obligation at 30 April 2008 is $NZ485 million.

Today we see the second half of the plan in action. Having taken legal control of the railways on 1 July 2008, the government has announced immediate increase in road user charges. Truck and transport companies (who will be the hardest hit) are already complaining and are threatening protests like those recently witnessed in Europe.

So when people ask me if the governments decision to buy back the railways will effect me I have to assume it will with the most noticeable thing being an increase in train numbers or longer trains. Do I think it was a good idea or a good use of money? I don't know all the details on the values involved but it seems that if we have a track that we are keeping in working order we may as well control the transport vehicles that run on it. If trucks can be removed from the road and their cargoes transported more efficiently by rail then I'm all for it.

Kiwirail, Road User Charges and Kyoto

July 02, 2008

What is the connection between the nationalisation of the rail network, the increase in road user charges and the Kyoto protocol.

Find out why the government spent so much tax payer money to purchase Toll and why there has been a sudden increase in road user charges.