The Te Huia train service between Hamiton and Auckland will continue to receive funding from the New Zealand Transport Agency – albeit at a reduced level – enabling it to carry on with its five year trial.
It’s a decision that will gladden the hearts of Te Huia supporters.
A reduction in the percentage of NZTA’s share of net costs may also appease service critics somewhat.
But it will mean higher costs for local councils during tight financial times meaning service cuts can’t be ruled out.
NZTA’s board met on Thursday to consider the fate of its Te Huia funding beyond June this year after a review of two years service, and the decision was announced Friday afternoon.
