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During negotiations with Toll last year, the Australian rail operator told the government it could axe a number of provincial rail services if the government did not give Toll the full subsidy they were seeking.  The list of services - known as Plan B during the negotiations - included the Greymouth to Hokitika railway line.

Mr O'Connor said that the National Party and its leader John Key need to come clean on why they oppose the government's rescue of the rail system.

"It's clear that our rail service was on the chopping block," Mr O'Connor said.  "We all know how vital rail is to our region's economy, servicing our dairy industry in particular.

"The Labour-led government refused to allow our rail services to be closed and bought back the rail for all New Zealanders.  John Key and the National Party are opposed to the government's rescue plan - they need to front up to our people and explain why.

"The Labour-led government will continue to make the investments to make sure that all existing rail services are protected under KiwiRail, which had its first day of operation yesterday.

"That's great news for our regional rail service and for our local economy," said Mr O'Connor.

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