New New Zealand ferry fuss

NEW uncertainty has hit New Zealand’s Cook Strait ferry replacement program with responsible minister Winston Peters claiming existing government-owned operator KiwiRail needs to “prove their worth”.

Mr Peters, who is rail minister and deputy PM, was responding to media questions arising from Select Committee papers that disclosed KiwiRail’s expectation its Interislander division will continue as the default operators “for another 60 years”.

Two new rail/ro-paxes are being procured by another, purpose-formed government entity, Ferry Holdings Ltd, and are due for delivery from their Chinese builder in 2029.

Mr Peters told The Press he was aware of KiwiRail’s expectations but “we want to see strong performance for NZ to prove their worth”. The government has not decided on the ferries’ operator into the future and is currently focusing on finalising commercial port agreements with CentrePort Wellington and Port Marlborough [Picton].

“Decisions can then be taken on the operator in a sensible, no-nonsense way,” he said.

Mr Peters’ comments have renew speculation that the government, through FHL, could yet seek to privatise the Interislander service via sale or lease.

Meanwhile, Mr Peters has today lauded the formal commencement of Marlborough District Council’s consultation program to fund Port Marlborough’s NZ$110 million capped contribution to revenue-earning port assets in Picton.

“The consultation process is a required step under the Local Government Act, but it is also a progress milestone in the no-nonsense ferry replacement solution that is saving the taxpayer $2.3 billion.

“We encourage locals to have their say about a vital port and ferry business where a third of all passengers stop in Picton and spend locally. 

“We have approved a $531 million budget for all Picton works of which the proposed $110 million from Port Marlborough will pay for assets it owns – in turn the origin of dividends to be paid to ratepayers.

“The balance will be paid for by the taxpayer through Ferry Holdings, generating revenue that benefits the taxpayer long into the future.

“Supporting this proposal would come at no cost to ratepayers and underpins value in their Port company, but we don’t need to explain common sense to the good people of Marlborough,” Mr Peters said.

Last week a travel industry report emerged that the unreliability of the Interislander and rival Bluebridge vessels is seriously impacting NZ’s reputation amongst international and local tourists.