Extra $1.2 billion for new ferries and rail

investment included Auckland’s European train control system, which would provide safer and more reliable services on the Auckland metropolitan rail network.

The money came on top of the Government’s $1 billion investment in Budget 2019, said Kiwirail chief executive Greg Miller.

The capital funding promised for the new Interislanders highlighted how important the ferry connection was to New Zealand, he said.

‘‘Our Cook Strait ferries are an extension of State Highway 1, moving 800,000 passengers and up to $14 billion worth of road and rail freight between the North and South Islands each year.

‘‘They are a must-have for NZ Inc. The two new rail-enabled ferries will be more advanced, have significantly lower emissions and last for the next 30 years.

‘‘This is a once-in-a generation investment and I am thankful for the Government’s support. It gives us the security to go out to international tender to build the ships, which we hope to see arriving on our shores in 2024 and 2025.’’

The Government wants spending on infrastructure projects to help keep Kiwis in jobs, with a Covid-19 induced recession expected to result in a steep rise in unemployment in coming years.

Kiwirail currently employs almost 4000 people, and its chief executive, Greg Miller, is on an infrastructure industry group reporting to the Government about ‘‘shovel ready’’ projects.

State Owned Enterprises Minister

Winston Peters said after decades of under-investment, further investment would play an essential role in our economic recovery post-lockdown. ‘‘The investment in rail infrastructure is not only helping to secure the thousands of existing jobs at Kiwirail but will be a huge boost to New Zealand’s civil engineering and construction sector, with hundreds of contractors, and their material suppliers, needed nationwide for track renewal, mechanical facility upgrades, and ferry terminal projects,’’ Peters said.