Feds say Kiwirail charges unfair

The new charges have been introduced under the guise of the recent health and safety reforms, though Federated Farmers understands plans to increase charges pre-date the reforms.

Federated Farmers' Vice-president Anders Crofoot says many farmers have been left stunned by the proposals they have received for new access charges.

"On top of recent hikes in rentals ranging between 200% to more than 400%, this is extraordinary," Crofoot says.

"Having assisted individual farmers in their dealings with Kiwirail over the massive increases in rent, there are many situations where farmers are seeing new charges coming in on the top of that."

Farmers see the reasons Kiwirail cite for the charges, being administration fees and annual expenses, as disingenuous.

"It is well known that many in the farming community are presently under considerable economic pressure," Crofoot says.

"We're appalled at the timing and manner of Kiwirail's activity, particularly as a state owned enterprise."

Federated Farmers is presently supporting farmers and making the case that farmers have been safe and vigilant custodians of stock crossings across railway lines.

"We're attempting to provide advice on commercial resolutions, however Kiwirail's current approach means we're not optimistic.

"Federated Farmers reached no agreement with Kiwirail on either the rental issue or the new charges for crossings," Crofoot says.

"We're currently pursuing ways and means to reduce the impact of this new and additional expense."