New Zealand:  Railway Network

The New Zealand Railway Network is another P3 disaster from around the world – a disaster much like the failures (SR 91 and SR 125) that have cost California taxpayers hundreds of millions more than they should have. Because they are so profitable, it is not a surprise that multi-national companies and Wall Street investment houses want to bring more such P3s to the "lucrative" California market.
 

• Require competitive bidding.

• Require public oversight, design and inspection to ensure public safety and cost controls.

• Utilize tax exempt public financing which is as much as 35 percent lower than private borrowing.

• Tolls should be reinvested in our transportation and other public infrastructure.

• Prohibit non-compete clauses and cash payments that prevent improvements to competing public roads, increasing congestion.

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1 Railway Gazette International, "KiwiRail launch marks end of 'failed' privatisation," July 2, 2008.
2 New Zealand Press Association, "Govt may assemble Kiwirail locomotives in NZ," July 13, 2008.
3 The National Business Review, "KiwiRail to control railways," July 1, 2008.