The country's rail operator and tracks will be overseen
by one state-owned enterprise, Finance Minister Michael Cullen
Dr Cullen said from October 1, KiwiRail and Ontrack would
report to the board of the New Zealand Railways Corporation,
which would be chaired by former prime minister Jim Bolger.
Mr Bolger currently chairs the establishment board of
KiwiRail, the Government's name for the rail operation
business it bought back from private company Toll in July.
At the time Dr Cullen said it was likely that Ontrack -- the
state-owned railway track company -- and KiwiRail would
become separate operating units of a single SOE.
Today he confirmed that arrangement.
He said the current members of the board of the NZ Railways
Corporation, essentially a holding company for remaining rail
assets from the sell off in the 1990s, had resigned with
effect from the end of the month.
Dr Cullen said he would announce the next tranche of capital
funding for rail upgrades and expansion next week.
The Government initially injected $80 million into KiwiRail
after its purchase to keep operations at their current level
in the immediate future.
But Dr Cullen has previously signalled an additional upgrade
package of around $300 million would be likely.