The Privatization of New Zealand Rail Part 1: Assessment of History Markets and Data

Abstract

The Treasury requested tenders for an empirical evaluation of the impact on the New Zealand economy of the privatisation of NZ Rail Limited now Tranz Rail Ltd. Their terms of reference were to: determine the nature and extent of the economic welfare gains andlosses resulting from the privatisation identify which groups have gained or lost estimate the quantum of the gains or losses and analyse in depth the decision and consequences of the privatisation. The aim of the review is to determine whether the privatisation of NZ rail was in the public interest and to provide input to examinations of welfare changes associated with privatisation more broadly.