The Government's decision to buy locomotives designed and manufactured in China is a "debacle", Dunedin South MP Clare Curran says.
Minister for State-owned Enterprises Tony Ryall faced more questions in the House yesterday about KiwiRail's decision-making and funding, including one from Ms Curran about the Chinese locomotives.
The first 20 of 40 locomotives ordered from China at a total cost of $150 million have been plagued by a string of faults, some of which are being repaired for a second time.
MPs were told last month KiwiRail had done a market evaluation before buying from China, but Ms Curran told the Otago Daily Times last night she had since learnt KiwiRail did not call for tenders for the locomotives.
"What sort of debacle is it they [the Government] are managing and why aren't they holding the KiwiRail board to account, or being held to account themselves?"
In the House yesterday, Ms Curran asked Mr Ryall whether he supported the decision by KiwiRail's board not to undertake a competitive tender on such a major capital acquisition and, if so, why.
Mr Ryall replied the decisions were managed by the KiwiRail board and its executive and he had had confidence in those people.
Labour Party transport spokesman Phil Twyford asked Mr Ryall several questions about the affordability of KiwiRail's proposed $3.85 billion 10-year turnaround plan, launched in 2010.
Mr Ryall conceded there was little likelihood KiwiRail would be able to find the full amount because of a downturn in its business. However, the company remained on track to meet the plan's objectives, he said,Ms Curran said last night the purchase of the Chinese locomotives was "a decision which is going to cost the country down the track" and merited even closer scrutiny now the Government had conceded KiwiRail could not afford to pay for the turnaround plan.
"KiwiRail is out of control and the Government's demands have pushed them into a place where they are making bad decisions which are negligent."
