New Zealand: Matthewson on railways board

Having watched New Zealand rail begin its journey towards privatisation, former Labour MP Dr Clive Matthewson has found himself in charge of a renationalised rail track network.

Dr Matthewson has been named as one of three new directors on the New Zealand Railways Corporation following the Government’s purchase of the nation’s rail infrastructure from Toll Holdings for $1 at the end of last month.

The other two new directors are former Dairy Workers Union secretary Ray Potroz and Transit director Mike Williams.

Dr Matthewson said he did not remember being closely involved in the decisions of the fourth Labour government to turn New Zealand Rail into a state-owned enterprise (SOE).

At any rate, he was not a Cabinet member until 1990.

His colleague during those years, Richard Prebble, as minister of railways, oversaw the cutting of something like 9000 railways jobs at the SOE, having promised in the run-up to the 1984 elections to save rail.

However, it was not until the National Party took over following the 1990 elections that the railways were sold off to bankers Fay Richwhite and Wisconsin Central Transportation.

Dr Matthewson said he had always believed the rail tracks should be Government-owned, just as the state owned the roads.

There now appeared to be work to do to get them back into shape, he said.

"I am no more informed than any other reader of the Otago Daily Times but I certainly get the impression that private ownership of the tracks may have left us with some problems."

The Government has committed itself to spending $200 million to upgrade the tracks over four years.

Dr Matthewson said he thought he had probably been asked to take on a role as director because of his general experience of government but also because he was a qualified engineer.

National Party deputy finance spokesman John Key attacked the new appointments with the exception of Dr Matthewson.

"The appointment of Dr Clive Matthewson alone could probably have been justified. He is a qualified civil engineer," he said.

The three new directors join board chairman Cameron Moore, Lex Henry and Linda Constable. (AAP)