Greens want to get passenger rail back on track
The party released its shadow budget yesterday ahead of the government's official Budget announcements.
The shadow budget has a strong focus on the environment and curbing emissions, and key to this platform is the restoration of passenger rail across the country.
The document notes that "Aotearoa was once linked up by passenger rail — from Christchurch to Dunedin, and to a myriad of small towns in between".
"On any given day there were at least two passenger rail services to Christchurch from Dunedin.
"Our plan to deliver a passenger rail service between Christchurch and Dunedin assumes leased rail cars from KiwiRail, while a stage one proof of concept is under way and establishment and refurbishment of stations at Rolleston, Timaru, Oamaru and Ashburton."
Under the proposal, one train would run each way per day.
"Once the passenger service has been proven, we would electrify and upgrade the main line from Christchurch to Ashburton to 110kmh, and purchase tilt trains to run the service and speed up travel times."
The Southerner, running between Christchurch and Invercargill via Dunedin, ran successfully from 1970.
In 1993, the rail system was sold privately, before being sold back to the government in a significantly degraded condition, and closed in 2002.
Green Party co-leader Chloe Swarbrick said New Zealand once had regular, affordable train services connecting the country's centres and regions.
"We've done it before, and we can do it again.
"A passenger rail link would be great for students studying in Otago and Canterbury, and once the new Dunedin hospital is up and running, there will need to be a comfortable, accessible mode of transport for patients and whānau travelling there from around the region."
Rail & Maritime Transport Union general secretary Todd Valster said reviving regional rail had a lot of merit, economically and environmentally.
"There are a lot of people, young people nowadays in particular, that don't necessarily own cars and would like public transport options."
The Green Party's shadow budget costs the project's operating expenditure at $16.89 million over its first four years, generating revenue of about $14.19m.
Upgrading the stations would cost about $20m, buying the new trains about $90m and upgrading the lines about $300m over four years.
matthew.littlewood@odt.co.nz
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
NZ Herald
19 hours ago
- NZ Herald
KiwiSaver tips for self-employed: How to maximise retirement savings
Many in that situation opt to only contribute the amount required to get the maximum Government tax credit (and some don't even do that). But in this year's Budget that tax credit was halved, meaning you'll get a maximum of $260.72 from the Government provided you contribute at least $1042.86/year (and earn under $180,000). While that further waters down the appeal for the self-employed – in fairness it's still a 25% return and even before that change if that was all you were saving for retirement, you'd likely fall short of what you need. A report from the Retirement Commission last year suggested the Government increase its contribution for those who don't benefit from employer-matching – but I wouldn't hold your breath, especially when time is of the essence. So, if you're self-employed, what should you be doing with your KiwiSaver to ensure you're on track for retirement? Start with some number crunching I know, I know, 'figure out how much you'll need' sounds like tired advice. But it can be difficult to prioritise money going anywhere except into your bank account to fund your current existence unless you have a clear idea of why directing it elsewhere is essential. That starts with figuring out how much you might need in retirement and what you're currently on track to have. Websites like Sorted have brilliant calculators that can help you establish how much you'd have each week in retirement based on your current KiwiSaver settings – a number that might provide a wake-up call. Consider the best strategy for contributing One of the biggest challenges when you're self-employed is managing income fluctuations. Some months are killer, some are anaemic – and it's tricky to manage even just your regular fixed costs amid those ups and downs, let alone KiwiSaver. It's therefore worth considering how to make it work for your situation – to ensure it happens. For example, you could contribute a percentage of every invoice, so when times are lean less goes in, and vice versa. You could align payments based on the seasonality of your income or contribute a percentage of your profits when you do your GST (if GST registered) to ensure they happen. You could do a lump sum before the annual KiwiSaver balance date of June 30, but often big dollops of money are harder to find than smaller, regular amounts. Whichever method you choose, double check before June 30 that – at the absolute minimum – you'll qualify for the maximum Government tax credit. Review your fund type I'm beating a familiar drum here, I know – but I still come across people in their 40s who have perplexingly chosen 'conservative' funds, when they have decades before they can access their KiwiSaver, and are potentially missing out on significant returns. Don't make the same mistake. Consider a company structure I'll preface this point by saying: get good accounting advice, as there are many things to consider here aside from just your KiwiSaver. But to get you thinking – if you're operating as a sole trader, you and the business are one and the same, whereas if you form a company, the business is a separate legal entity. If you only take drawings from that company, as many business owners do, anything you put into KiwiSaver will be considered a drawing and taxed accordingly. However, if you pay yourself a PAYE salary as an employee of your company, the company contributes the 'employer' side of your KiwiSaver contributions, which becomes a tax-deductible business expense (noting here that employers pay an Employment Superannuation Contribution Tax based on the employee's tax rate, reducing the amount that goes into the employee's account). This isn't about avoiding tax but using legitimate structures to ensure you utilise a system that is currently not designed well for anyone who isn't an employee. But I repeat – take professional advice. Can you sell your business? KiwiSaver may not make up the entirety of your retirement nest egg even if you are an employee, benefiting from employer contributions, but the case for diversification goes double for those in business and contributing less – and your business could be one of those irons on the fire. For many small business owners, however, you are the business – and as soon as you're not working in it, it ceases to make money or be worth anything. But some could grow their business into something that has a life beyond their working years, and therefore potentially have some realisable value. I'm peppering in 'some' 'could' and 'potentially' because it isn't necessarily easy. It involves succession planning, investing in business assets, systems, IP, keeping personal costs separate, maximising profit, perhaps vendor financing. In short, it's not a small task, but if you have enough time and energy, there's potential. Just don't make it your only plan – business cycles can disrupt even the best-laid plans – which is why including KiwiSaver in your retirement planning mix is still worth considering.
Scoop
a day ago
- Scoop
What Officials Said About Pay Equity Changes
The minister who ushered through the pay equity changes said any limitations on workers' rights were justified in order to reduce the risks to employers. A document dump from the Treasury and the Ministry of Business, Innovation, and Employment (MBIE) showed the processes the government went through to change the pay equity framework, and then return contingency funding to the Budget allowances. Workplace Relations and Safety Minister Brooke van Velden, who introduced the legislation, acknowledged the changes would likely be contentious, but were necessary to meet the government's policy objectives of keeping a pay equity system, while changing the framework for assessing whether there is sex-based undervaluation. The government worked on the changes in secret, before announcing the amendment bill in May and passing it under urgency. At the Budget, Finance Minister Nicola Willis revealed the changes had saved $12.8 billion over the forecast period. 'This is justified' - Brooke van Velden The short timeframe to get the bill passed before the Budget meant there had been "limited testing and analysis" of the policy proposals, and the retrospective provisions in the bill were "inconsistent" with general principles. MBIE acknowledged the transitional provisions would likely be "contentious" but without them it was unlikely the amendments would "meet the policy objective of ensuring the regime achieves pay equity, whilst better managing claims, and ensuring costs are related to sex-based differences in remuneration." The legal risks remained redacted, and the bill had no Regulatory Impact Statement. The process was also kept secret to prevent a surge of claims being lodged and potentially determined under the existing Employment Relations Act. The acting Attorney-General, Paul Goldsmith's consideration of the bill concluded that while it imposed limits on the right to freedom from discrimination, the right to justice, and freedom of expression, it was still consistent with the Bill of Rights Act. The paper van Velden took to Cabinet for approval, included in MBIE's document dump, shows she considered any limitations on the rights to be justified. "I consider that this is justified to meet the policy intent of allowing employers to better manage their operations, reducing potential risks to an employer's financial viability, which may lead to a reduction in employment or the quality or quantity of services provided," van Velden wrote. Finding the contingencies In December 2023, shortly after assuming the government benches, the finance minister requested more information on how the pay equity forecasts worked and whether there were any upcoming large claims. In February 2024, the Treasury reported back, saying the approach brought in by the previous government had contributed to higher cost outcomes, as it disincentivised agencies and funded sector employers from taking a lower-cost bargaining approach. "While the current Pay Equity process does require agencies to seek a bargaining contingency prior to the bargaining phase, this occurs late in the process, and many of the potential parameters for settlement are already largely agreed between the parties," officials said. "The absence of financial incentives during the pre-bargaining phase may have contributed to agencies adopting approaches which exceed the minimum requirements of the Equal Pay Act, for example, agreeing to higher paid comparators when lower paid ones would be appropriate." It also meant the Cabinet had "poor visibility" of the costs, until parties were at or near settlement. Treasury said pay equity costs were managed outside of Budget allowances, and there was merit in exploring an approach that brought some or all of the costs back within Budget allowances. By April 2024, Cabinet had agreed to a reset, bringing pay equity funding into two centralised tagged contingencies: one for the funded sector, the other for the public sector. This still allowed the government to meet its legal obligations as an employer, but was deemed to support the coalition's fiscal strategy. However, by the end of 2024, the government was looking to disestablish the funded sector contingency, identifying it as a significant spending commitment. It expected service providers to manage their own claims, with any cost pressures they created managed like any other cost pressure: through the Budget process. How the money was found Nicola Willis chose to close the funded sector contingency and return the funding to the Budget 2025 allowance and capital allowance. This saved $9.6b over the forecast period. For the public sector contingency, Treasury recommended it be retained, but at a reduced level. "On balance, we consider retaining the contingency at [redacted] for residual costs to protect future allowances to be preferable given the legal obligations on the Crown as an employer under the new Act and Treasury's judgment that we can quantify the impacts with more than 50 percent confidence," Treasury wrote. The government adopted this approach, with the tagged public sector contingency reduced by $3.2b over the forecast period. In total, the changes returned around $12.8b to the Budget 2025 operating and capital allowances. Closing or reducing the contingencies without some certainty from Cabinet on policy change, however, was seen to potentially "strain the credibility" of future Budget allowances. And so, the future approach to pay equity was developed. Van Velden's legislation discontinued 33 claims and increased the threshold for what qualified as work that was "predominantly performed by female employees." All review clauses under settled claims became unenforceable.
Scoop
2 days ago
- Scoop
What Officials Said About Pay Equity Changes
Article – RNZ Treasury documents show the pay equity reset was key to meeting the coalition's cost-cutting goals., Political Reporter The minister who ushered through the pay equity changes said any limitations on workers' rights were justified in order to reduce the risks to employers. A document dump from the Treasury and the Ministry of Business, Innovation, and Employment (MBIE) showed the processes the government went through to change the pay equity framework, and then return contingency funding to the Budget allowances. Workplace Relations and Safety Minister Brooke van Velden, who introduced the legislation, acknowledged the changes would likely be contentious, but were necessary to meet the government's policy objectives of keeping a pay equity system, while changing the framework for assessing whether there is sex-based undervaluation. The government worked on the changes in secret, before announcing the amendment bill in May and passing it under urgency. At the Budget, Finance Minister Nicola Willis revealed the changes had saved $12.8 billion over the forecast period. 'This is justified' – Brooke van Velden The short timeframe to get the bill passed before the Budget meant there had been 'limited testing and analysis' of the policy proposals, and the retrospective provisions in the bill were 'inconsistent' with general principles. MBIE acknowledged the transitional provisions would likely be 'contentious' but without them it was unlikely the amendments would 'meet the policy objective of ensuring the regime achieves pay equity, whilst better managing claims, and ensuring costs are related to sex-based differences in remuneration.' The legal risks remained redacted, and the bill had no Regulatory Impact Statement. The process was also kept secret to prevent a surge of claims being lodged and potentially determined under the existing Employment Relations Act. The acting Attorney-General, Paul Goldsmith's consideration of the bill concluded that while it imposed limits on the right to freedom from discrimination, the right to justice, and freedom of expression, it was still consistent with the Bill of Rights Act. The paper van Velden took to Cabinet for approval, included in MBIE's document dump, shows she considered any limitations on the rights to be justified. 'I consider that this is justified to meet the policy intent of allowing employers to better manage their operations, reducing potential risks to an employer's financial viability, which may lead to a reduction in employment or the quality or quantity of services provided,' van Velden wrote. Finding the contingencies In December 2023, shortly after assuming the government benches, the finance minister requested more information on how the pay equity forecasts worked and whether there were any upcoming large claims. In February 2024, the Treasury reported back, saying the approach brought in by the previous government had contributed to higher cost outcomes, as it disincentivised agencies and funded sector employers from taking a lower-cost bargaining approach. 'While the current Pay Equity process does require agencies to seek a bargaining contingency prior to the bargaining phase, this occurs late in the process, and many of the potential parameters for settlement are already largely agreed between the parties,' officials said. 'The absence of financial incentives during the pre-bargaining phase may have contributed to agencies adopting approaches which exceed the minimum requirements of the Equal Pay Act, for example, agreeing to higher paid comparators when lower paid ones would be appropriate.' It also meant the Cabinet had 'poor visibility' of the costs, until parties were at or near settlement. Treasury said pay equity costs were managed outside of Budget allowances, and there was merit in exploring an approach that brought some or all of the costs back within Budget allowances. By April 2024, Cabinet had agreed to a reset, bringing pay equity funding into two centralised tagged contingencies: one for the funded sector, the other for the public sector. This still allowed the government to meet its legal obligations as an employer, but was deemed to support the coalition's fiscal strategy. However, by the end of 2024, the government was looking to disestablish the funded sector contingency, identifying it as a significant spending commitment. It expected service providers to manage their own claims, with any cost pressures they created managed like any other cost pressure: through the Budget process. How the money was found Nicola Willis chose to close the funded sector contingency and return the funding to the Budget 2025 allowance and capital allowance. This saved $9.6b over the forecast period. For the public sector contingency, Treasury recommended it be retained, but at a reduced level. 'On balance, we consider retaining the contingency at [redacted] for residual costs to protect future allowances to be preferable given the legal obligations on the Crown as an employer under the new Act and Treasury's judgment that we can quantify the impacts with more than 50 percent confidence,' Treasury wrote. The government adopted this approach, with the tagged public sector contingency reduced by $3.2b over the forecast period. In total, the changes returned around $12.8b to the Budget 2025 operating and capital allowances. Closing or reducing the contingencies without some certainty from Cabinet on policy change, however, was seen to potentially 'strain the credibility' of future Budget allowances. And so, the future approach to pay equity was developed. Van Velden's legislation discontinued 33 claims and increased the threshold for what qualified as work that was 'predominantly performed by female employees.' All review clauses under settled claims became unenforceable.
