[MotherBear]

Government considers lifeline for train service
24 September 2006
By RUTH LAUGESEN

The historic Overlander train link between Auckland and Wellington may yet be saved, with cabinet expected to consider tomorrow whether to give the service a stay of execution.

The Overlander was due to make its last journey this Saturday. However, the Sunday Star-Times understands cabinet will decide tomorrow whether to extend the service for six months or longer to allow more work on saving the service or finding an alternative.

Toll NZ, which says it is losing $1.75 million a year on the service, says it would need a subsidy to continue. But a Wellington consortium led by Thomas Manning of Manning Group Ltd says it could provide a commercially viable, upmarket scenic train on the route.

The consortium is promising sheepskin seating, digital entertainment and native wood interiors, along with food and beverages "showcasing New Zealand food and wine to airline business class standards". The Manning proposal would see the Overlander's pre-war trains replaced by three new purpose-built trains, and would be ready to go from January 1, 2009.

The consortium would seek $5m of the $30m in capital and start-up costs in a grant from the Ministry of Economic Development. The balance would come from consortium backers and by raising funds through the New Zealand Stock Exchange through a partial share float or secondary board listing.

Manning said the stunning scenery of the central North Island would be a strong drawcard for tourists. "The central North Island should be a New Zealand scenic icon along with the Milford Sound and the Bay of Islands," said Manning.

The 140-passenger trains, running twice a day, would feature large viewing windows and dining facilities. The service would be viable with the current 50,000 passengers a year, based on a $140 ticket price instead of the current $99.

Green MP Sue Kedgley welcomed cabinet's consideration of a stay of execution. "I think it would be absolutely criminal to let the service stop on September 30 without giving it our best shot to get a viable service." More than 24,000 people have signed a petition to save the service.

A spokeswoman for Finance Minister Michael Cullen's office refused to comment. The axing of the service would end a 97-year tradition. A daily Auckland-Wellington passenger train link began in 1909, a year after the main trunk line was completed.