The Government has ruled out intervention to stop job losses at KiwiRail.
Up to 220 jobs are on the line as the rail company seeks to recoup costs.
The Prime Minister says a number of options are being looked at and at the end of the day, the management has to make the company profitable.
"That's an operational matter for them. There's a Government shareholder of KiwiRail but in the end we leave the management to run the company and we're sure they'll make the right decisions for the overall best interests of the company."
John Key has also denied claims by Labour, that the Government is preparing to sell off parts of the state owned rail company.
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