At the beginning of July the media were abuzz with a Treasury recommendation to Government that the KiwiRail network be radically reduced. Treasury's opinion was that the options for the rail operator 'were either a relatively small scale rationalisation of the existing network, or a very significant downsizing of the rail network, including exit.' If Government decided to make larger changes, Treasury said the options were to close'most or all'of the freight network, with the option of retaining services between Auckland and Tauranga. Passenger networks in Auckland and Wellington would also be retained.
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