The grounding of all 40 Chinese made locomotives due to the use of asbestos, shows the governments pressure on KiwiRail to make a profit and reduce costs is not working says Labour .
Labour’s Transport spokesperson Darien Fenton says KiwiRail had no choice but to take the locomotives out of service to protect the safety of workers, and this is the latest in a long line of failures in the overseas procurement of locomotives and wagons.
“Lowest cost tendering, cuts to rail maintenance and contracting-out have led to a catalogue of problems, from rotting Peruvian sleepers to issues with Chinese-made rail wagons. This is taking a toll on our Kiwi-owned rail company,” she says.
“This latest problem will have a further impact on the company’s bottom line. KiwiRail already had to go cap in hand to the Government for more funds after the Aratere debacle.
“Kiwis have a right to know whether the Government is prepared to revisit its turnaround plan and help make KiwiRail the successful rail company New Zealand needs.” Fenton concluded.
