Strait ferry needs Super Fund support

KiwiRail has over the years been a bit of a political football with politicians of all colours interfering in operations making long-term funding all but impossible.

Sell-offs by previous governments and subsequent buybacks at ludicrous prices unfairly enriched a few dubious ‘‘rich listers’’ at the expense of the many, mainly the taxpayer-funded public purse.

Access to assured long-term funding is essential if you are going to invest and run state-ofthe-art ferries and trains.

New ships and up-to-date rolling stock reduces maintenance costs, increases reliability and the passenger experience thus attracting more people onto the network. So to funding – this is an area where the NZ Super Fund should step up.

KiwiRail needs to have a programme of rolling bond issues to fund investment in new ships and trains.

Bond redemption yield would be attractive to provide a significant ‘‘cash plus’’ investment return.

Bond servicing would come from fares and other worked assets. Most countries are investing heavily in reliable public transport systems.

All need significant central or local government subsidies.

New Zealand’s transport infrastructure needs long-term vision and serious investment or as a nation we risk grinding to a halt in our love of the car.