When the Labour government bought Kiwi Rail last year (see May 10 2008) the National Party said this was a big mistake. However, now the National government has to find some money to improve the trains. Today, we heard that the government will spend $115 million on new engines for the tourist trains from Picton to Christchurch and Christchurch to Greymouth. The engines will be made in China.

The government has $40 million for these new trains so will need to borrow the other $75 million. However, Kiwi Rail needs much more money than that, maybe as much as $3 billion in the future. There are no plans to find this money in the near future.