Clusterfreak

Written By: - Date published: 9:57 am, December 12th, 2024 - 18 comments
Categories: act, Christopher Luxon, david seymour, national, nicola willis, nz first, transport - Tags:

After a long delay and many promises of an announcement about the future of the Cook Straight ferries yesterday’s announcement could be categorised as something of an anti climax.

It was an announcement that in the future they would make an announcement.

It was a year ago that the Government refused further funding for the project. National went to town on the issue and decided to cancel what was a really good contract because the enabling work, which have to be done anyway, were going to cost.

They promised that a cheaper and better solution would be found.

They appointed a Ministerial Advisory Group dominated by road interests and recommendations were reported back in June 2024.

MUNZ National Secretary Carl Findlay said this about the Group:

Given the advisory group’s antagonism of key players in the freight and shipping industry, and their dismissal of the importance of a rail system that delivers $3.3 billion in worth to NZ Inc each year, it’s not surprising their recommendation has stalled. It is surprising they still seem to be on the payroll although nobody seems to know what they are doing. The rumour in the sector is someone from the Government is talking to Chinese shipyards on the quiet.

About the political decision making process and the timing he said this:

Willis said soon for a new option, then she said the September quarter, now she says by the end of the year. Paul Goldsmith says it could be next year until a decision is made on replacing ferries. When asked about rail ferries, David Seymour mused on Q+A that maybe the South Island doesn’t really need a railway system.

Obviously feeling the pressure, Christopher Luxon last week stepped in with a vague “by the end of the year” statement.

This was written in early October.

Then yesterday we heard further details from the Government about how the matter will progress. Or to be accurate we heard three details, that Winston Peters will become Minister for Rail and that a company would be set up to buy two new medium sized shops to replace the afeing fleet of three ferries. And that the ports will be asked to bear more of the cost of the port build.

As pointed out by Craig Rennie what we did not hear include:

  • where replacement ferries are coming from
  • how much they will cost
  • who will pay for them
  • how the port infrastructure will be delivered
  • the fiscal or economic impact.

To add to this list we also do not know if they will be rail enabled. Christopher Luxon has uttered the phrase rail compatible which could mean anything but hints strongly at a walk back from the original commitment to rail.

And this morning there was this incredible attack on David Seymour’s credibility by Winston Peters over the issue.

The new Minister of Rail Winston Peters has poured scorn on ACT leader David Seymour’s hopes of privatising the Cook Strait ferry service, and says Seymour was “wrong” about the cost of the new project.

On Wednesday, Seymour said indicative costings were “approximately half the at least $3 billion cost” of Labour’s proposal.

He shared that information despite Minister of Finance Nicola Willis’ caution about disclosing costs.

Asked on Morning Report if the government had a sum in mind, Peters said it would be “stupid” and “imprudent” to name the price.

“I said [on Wednesday] it would be most imprudent, politically and business-wise, stupid, to start saying what you’re going to buy them for, because that’s the bottom line. They’ll start from there and up it will go.”

He rejected Seymour’s statement the new deal would cost a “fraction of the price” of the iRex project, and that private investment remained on the table.

…

“He’s wrong on the figures that he’s used, he’s wrong on the question of privatisation and he’s wrong on the question of what it’s going to cost.

This is going to get sticky. National’s and Act’s reflexive opposition to rail is going to meet head on with NZ First’s realisation that rail has a major role to play in the issue. Winston agreed strongly with Mainfreight’s Don Braid view that not having rail-enabled ferries will be inefficient and more costly for businesses like his and could lead to 10,000 more trucks on the country’s roads.

Time will tell if this is a coalition ending issue.

18 comments on “Clusterfreak ”

  1. Bearded Git 1
    12 December 2024 at 10:06 am

    The Greens have, rightly, called this an "omnishambles" which is consistent with the post above.

    https://www.rnz.co.nz/news/political/536384/interislander-replacement-opposition-astounded-disgusted-over-omnishambles

    Labour delivered on a quality $3 billion (or less) solution for a critical long term transport link between the islands. Luxon's warring coalition has delivered nothing.

    But it can afford to spend $22 billion on Roads of (National) Party Significance.

    https://www.nzherald.co.nz/nz/budget-2024-extra-1b-for-roads-of-national-significance-leaves-green-party-transport-expert-dumbfounded/IUGPJHAFOVCTZPOPQFS46IXAH4/

    Reply
  2. Muttonbird 2
    12 December 2024 at 10:13 am

    If we are now told by Willis ports and private interests will have to stump up some of the land side costs, why on earth didn't she propose this for iRex before scrapping iRex b/c of land side costs?

    And like the scrapped Auckland airport rail, a significant part of the cost over the lifetime of iRex would have been paid for by export customers and foreign tourists.

    The country is beginning to see how amateur these clowns are with the big issues and the economy. That includes Treasury.

    Reply
  3. ianmac 3
    12 December 2024 at 10:24 am

    "that a company would be set up to buy two new medium sized ships"

    This means that the COC can avoid talk of privatisation – for now. But in a few years if still in office call for bids. So easy to sell a company.

    Reply
  4. Tony Veitch 4
    12 December 2024 at 10:47 am

    As Chewie on BHN pointed out – the 3 ferries are nearing 30 years old, and will be replaced by 2 ferries of a similar size which could last for another 30 years.

    Does that mean there has been no growth factored into their (ACT-led govt) calculations for 60 years? Has NZ not got bigger, population-wise, economy-wise?

    A text-book example of short term thinking.

    This ACT-led CoC couldn’t manage a piss-up in a brewery!

    Reply
  5. SPC 5
    12 December 2024 at 10:56 am

    There is a cost.

    1.more occasions when the Aratere is not available in future years 2026-2029

    2.port-side space/facility (land etc) of truck to ferry transfer of rail freight (not required when Aratere is around).

    (includes KiwiRail offsite storage yard area cost subsidy of the Cook Strait operator).

    3.road costs, congestion.

    Road-bridging has been suggested by the government as a way to upgrade the Cook Strait ferries without needing rail. Having only two new ferries has also been suggested.

    Braid said those ideas showed the government did not understand that rail was a very effective mode to move freight, or that people and freight at times must be separated.

    "It seemed to me that they thought that they could mix freight and passengers for every sailing using this road bridging type environment, which doesn't take into account the amount of land that's required at either end … nor had there been any thought given to the movement of hazardous goods across the Cook Strait which we utilised the ferries for when there are on no passengers on board (only crew) as they are the DG [dangerous goods] regulations of this country," he said.

    https://www.rnz.co.nz/news/political/529180/government-did-not-consult-with-rail-users-before-cancelling-interislander-upgrade-industry-expert

    The next Labour government will probably look for a rail enabled second hand ferry (temporary use) before buying a new one.

    Reply
    • Bearded Git 5.1
      12 December 2024 at 11:51 am

      The Picton to Blenheim road is already a nightmare to drive. Busy and twisty. Adding lots more trucks to this would not be a good idea.

      Reply
  6. Adrian 6
    12 December 2024 at 11:07 am

    The Ports of Marlborough is a Marlborough Council owned company on behalf of the people of Marlborough province / district. There aren’t many of us, maybe 70,000 or about 25,000 ratepayers and now we are being expected to pay for this huge bulge of shitfuckery by the way of a new port on behalf of the other 5.43 million NZers. National have now quite happily dumped a bill of up to half a billion bucks on this small cohort of people, an unusually large percentage of whom are on fixed incomes.
    What sort of hand washing arseholery is this, quite aside from this being the tacit admission that whatever second-hand rust buckets they do end up salvaging off some breakers yard in South Asia somewhere it’s this admission that they STILL need the new infrastructure identical to the one they cancelled , to get the whole sorry mess to work. What a deceitful bunch of idiotic dickheads have we been saddled with.

    I don’t need to wish a pox on their houses because they have done that for themselves.

    Start donating now to the left wing party of your choice because we will have an election before Peters gives up his Deputy PMship.

    Reply
  7. Tiger Mountain 7
    12 December 2024 at 11:11 am

    The geography of this country demands coastal shipping (preferably NZ run as Michael Wood and some industry figures were organising) and robust maritime transport between the two main Islands. Climate disaster, and crumbling roading demands an improved rail network, not expanded trucking.

    The CoC lot have totally botched this on ideological grounds at the risk of severing reliable NI/SI ferry connection. What's more, a Wahine disaster MkII could easily happen with powerless, rudderless vessels floating in Cook Strait in rough weather. Many may likely not risk “cruising on the InterIslander” these days.

    Labour got a good deal in mid COVID for new ferries and these effwits have shown again exactly where they stand on public infrastructure–nowhere!

    Reply
  8. Stan 8
    12 December 2024 at 11:44 am

    Just to remind everyone that our country's financial future is controlled by Nicola Willis, graduated with a degree in ENGLISH LITERATURE.

    So embarrassing, she is a f#cking amateur.

    Reply
    • Bearded Git 8.1
      12 December 2024 at 11:54 am

      …and they had the cheek to attack Robertson's excellent tenure as finance minister.

      Reply
      • aj 8.1.1
        12 December 2024 at 12:01 pm

        …and the money given in tax cuts (the majority going to those that least need it) could have funded IREX (and Dunedin and other hospitals) several times over. Oh, and landlords.

        Reply
    • tc 8.2
      12 December 2024 at 12:23 pm

      IMO Willis is just another puppet getting their strings pulled so no financial experience was required.

      The plan is to plunder and her world class arrogance will probably see her remain in the role until the hollowmen throw her under a bus she will not see coming.

      Reply
    • SPC 8.3
      12 December 2024 at 12:24 pm

      Best FM in a long time according to Luxon, does no one tell him anything?

      Willis was once an English protege (both literature), before being prepped with real world experience off-farm at Fonterra.

      Reply
  9. Mike the Lefty 9
    12 December 2024 at 12:17 pm

    So the future of the (maybe) rail ferries appears to hang on the personal conflict between the two deputy PMs, both who want to be the cock of the walk.

    So once again, where is Luxon? You know LUXON, the one that is supposed to be our PM, our leader?

    It is no wonder that nobody outside government (except National Party apologist Nick Legatt) has voiced any confidence in the outcome.

    Reply

Leave a Comment

The server will be getting hardware changes this evening starting at 10pm NZDT.
The site will be off line for some hours.