By Phil Boeyen, ShareChat Business News Editor
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Thursday 23rd August 2001 |
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Government officials have been meeting with Tranz Rail to explore the possibilities for an extension beyond that date, giving southern regional councils more time to consider their options for continuing the service long-term.
A light rail service has been mooted.
No final decisions have been made but Mr Gosche says he hopes to announce next week what assistance, if any, Government could provide to secure an extension.
"We know that the southern regional councils want the service to continue and we want to help find ways of making that happen. They need all the facts before they can make long-term decisions on subsidising the service.
"A temporary extension would buy the councils some time to do the necessary homework without the immense pressure that they have been under in recent weeks."
At the same time Tranz Rail and Transfund would exchange information on the costs associated with running the Southerner.
Mr Gosche says he could not say how long the extension might be for, but hoped it would be until Christmas.
The Southerner is due to finish service after Tranz Rail was unable to find a buyer for the business. It has sold a number of services under restructuring but many others are being closed down because they no longer fit in with the company's plans to concentrate on freight.
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