Daily review 14/12/2023

Written By: - Date published: 5:30 pm, December 14th, 2023 - 21 comments
Categories: Daily review - Tags:

Daily review is also your post.

This provides Standardistas the opportunity to review events of the day.

The usual rules of good behaviour apply (see the Policy).

Don’t forget to be kind to each other …

21 comments on “Daily review 14/12/2023 ”

  1. SPC 1

    It makes one wonder about the governments plans as per money for Kiwi Rail, it looks like a plan to offload Kiwi Rail once they no longer need NZ First.

    Infratil are the large scale investor in infrastructure and might partner Mainfreight.

    Another road transport body, the National Road Carriers Association (NRC) said the Government’s decision was a blow for the national infrastructure network. “While NRC sympathises with the Government’s need to balance the books, the reality remains that the Wellington and Picton port infrastructure is dated and needs significant investment to carry it through,” said general manager policy and advocacy James Smith.

    “A lot of the conversation has been focused on the ‘mega ferries’ but as we learnt … the ferry costs account for just 21 per cent of the investment required to upgrade the infrastructure. [Finance] Minister [Nicola] Willis is correct, there are options in terms of boats, what we don’t have an option on is to do nothing with the dated port infrastructure. We only have to look at the recent chaos that ensued every time one of the old ferries was taken out of commission with a breakdown or maintenance,” Smith said.

    “NRC hopes that KiwiRail, like any other commercial business that has had their preferred funder decline their request, will look to seek alternative funding. Just because Kiwirail is state-owned doesn’t mean it gets a hall pass in terms of seeking alternative funding.

    “There are plenty of global infrastructure funders who would likely be very open to a significant infrastructure investment with a 60-year life and a stable user profile.”

    New Zealand Council of Cargo Owners chairman Mike Knowles said the project canning was “an extremely concerning development for New Zealand’s supply chain”.

    “The Interislander service is effectively SH1 infrastructure and is critical to the efficient, reliable movement of freight so it is deeply alarming that planning for the future of this infrastructure has gone so far off the rails.

    “We would expect the Government and KiwiRail to come up with a ‘Plan B’ very quickly to ensure this critical link between the two islands is maintained.

    https://www.nzherald.co.nz/business/fearful-cook-strait-freight-transport-sector-asks-what-next-for-15-billion-a-year-cargo-route/3CHESRZDYBA57JUDVX6NDSERHQ/

    • SPC 1.1

      National all talk about infrastructure investment.

      But by cancelling the Interisland Resilient Connection Project – known as iRex – they have shown all that talk was just talk.

      The project would have delivered a world-class, long-term, resilient piece of vital infrastructure.

      In forcing KiwiRail to cancel the project, National has shown they are short-term tinkerers like many governments before them.

      Aging inter-island ferries is not a new phenomenon. Subsequent governments have grappled with what to do. But the problem remains: aging vessels, aging onshore infrastructure, and lack of ability to grow.

      We are now back at square one. We are back talking about buying second-hand ships that aren’t rail-capable. We are back trying to find stop-gap measures. We are back to the drawing board to find a solution that will inevitably be cancelled. We will be back to headlines every week of ferry cancellations due to breakdowns.

      But we are a nation of two main islands that need to be connected. That connection for people, vehicles, rail, and freight is vital. It needs to be reliable and fit for the unique geographical layout we have.

      Trains need to roll on in Welly from and roll off in Picton. Unloading rail wagons onto truck and trailers and driving them onto the ferries, then doing the reverse at the other end is doable, but it’s unproductive. It's a stop-gap.

      Build the ferries. Build the terminals. Build the marshalling yards.

      https://www.newshub.co.nz/home/politics/2023/12/lloyd-burr-opinion-christopher-luxon-s-ferry-snub-shows-he-s-all-talk-on-infrastructure.html

      • SPC 1.1.1

        KiwiRail

        Even if three smaller ships were brought in, it would only reduce the infrastructure costs by 7 percent.

        Reidy said KiwiRail still maintained the bigger ships with more capacity and lower carbon emissions would have been best.

        The new boats would have been fit for purpose for New Zealand – connecting rail with freight and passengers across the Cook Strait.

        Leasing has now become an option, he said, however, that meant rail capacity would not be catered for.

        The Cook Strait is one of the most dangerous stretches of water in the world, Reidy said, and the larger ferries KiwiRail wanted would have been most suited to handle the often stormy conditions.

        Unions

        Four transport unions, the Maritime Union of New Zealand, the Rail and Maritime Transport Union, the New Zealand Merchant Service Guild and the Aviation and Marine Engineers Association have demanded Willis' resignation over the government's decision.

        He said taking the cheaper option of leasing existing ferries had led to big bills preparing them for sailing across the Cook Strait.

        "You always make a compromise when you're leasing vessels."

        The ferries that would have been built for KiwiRail would have catered for the specific track gauge of the KiwiRail carriages.

        If KiwiRail leased ferries they would probably only be able to handle cars and trucks and no rail carriages so new ways would have been needed to move freight across the Cook Strait.

        "It's such a significant part of the New Zealand economy . You either fix it now or you try and fix it later and everyone keeps pushing it down the road and it's only going to get more expensive if you keep pushing it down the road …"

        He said if KiwiRail still wanted to build replacement ferries it would go to the back of the queue at the shipbuilding yards.

        https://www.newshub.co.nz/home/politics/2023/12/kiwirail-considering-options-to-build-and-sell-new-ferries-ceo-says.html

  2. adam 2

    Did anyone make it to the Union meeting in Epsom today?

    Remember if they are a act member of parliament they will pick up their own rubbish, clean their own office, and keep the place spotless all by themselves. Because they won't pay anyone a living wage to do it for them.

  3. Ad 3

    On the other hand Willis just saved $2b for roading. NZTA are broke and could do with it

    • Pat 3.1

      On the other hand Willis just removed 2 billion (if indeed that is the sum) from the economy….and maybe it will go to NZTA…and maybe it wont.

      • Barfly 3.1.1

        Jeez I it goes to tax cuts so I'm counting on the $3.50 a week tax cut for me

        /sarc

        • Pat 3.1.1.1

          The tax cuts are a fait accompli.

          Where the 'savings' from the ferry infrastructure goes is undetermined, if it goes anywhere…..perhaps debt reduction….or equally likely welfare support.

    • Incognito 3.2

      AFAIK, Willis turned down a request for extra additional funding. How’s that a saving?

      • Pat 3.2.1

        $400 million expended to date (apparently), 3 odd billion forecast to complete (uncertain) plus loss on breach of contract or asset sale, and the expected expenditure not made in the near term is reduced by a couple of billion, much of which would have been expended in the onshore economy.

        And at the end of it all, the ferries still need to replaced….unless we dont.

        • Incognito 3.2.1.1

          How much of this money was allocated for this in Budget 2023 and how much of it will now be saved and possibly repurposed?

          • Pat 3.2.1.1.1

            More than I could say, though I believe not the entire sum being quoted.

            And I may add that not all of it was Gov expenditure.

            • Incognito 3.2.1.1.1.1

              Willis is (now) in charge of government spending and that’s what I’ve been asking about. I will search for it in the Budget documents.

              • Pat

                Dont expect to find the latest request for 1.4 billion…so possibly a total of 2 billion less the local body investment.

      • Ghostwhowalks 3.2.2

        Because almost all the billions was multi-year budget allocation ( to match the spending profile ) refusing the top up means the whole allocation remaining is unspent.

        Only a small amount has been spent so far , say $50 mill for design, development and some smaller terminal works.

        Multi-year spending is always like this to cover many fiscal years

        • Incognito 3.2.2.1

          I know you’re trying to be helpful but when you talk vaguely about “billions” you sound like a member of the Nat Party. Those mythical ‘billions’ are in Treasury documents and the Government Budget or they don’t (yet) exist.

    • Tricledrown 3.3

      The New Ferries are much bigger able to cope with increasing traffic main exports and machinery farm and industrial supplies going south.Tourist's more and more wanting to see NZ. The clapped out old infrastructure developing world laughable for NZ a huge amount of goods cross the cook strait .leaving unreliable dangerous old ships . National are being really dumb here farming will suffer as so much farming input and output relies on the cook strait ferries and is expanding rapidly.the terminals are in terminal decline.Just like the Trump claim about a big spend on infrastructure he did nothing the right can't do infrastructure its not in their cost cutting tax cut bribing lack of foresight .What ever the cost is we need to have a future proofed solution.kicking the can down the road is not a plan.Throwing away $300 million invested already is even Dumber.

  4. SPC 4

    This is less than ideal.

    Extremism begets extremism.

    82% of those on the West bank and 57% in Gaza support the October 7 attacks.

    https://twitter.com/EFischberger/status/1734953024630526327/photo/1

    Only 10% believe that Hamas committed war crimes.

    When asked about their own preferences for the party that should be in control in the Gaza Strip after the war, 60% (75% in the West Bank but only 38% in the Gaza Strip) selected Hamas

    If new presidential elections were held today and only two candidates, Mahmoud Abbas and Ismail Haniyeh, the voter turnout would be only 53%, and among those who would participate, Abbas would receive 16% of the vote and Haniyeh 78% (compared to 58% for Haniyeh and 37% for Abbas three months ago).

    https://twitter.com/EFischberger/status/1734954908892184921

    The full poll.

    https://pcpsr.org/en/node/961

    • Barfly 4.1

      Maybe it's a case of getting the shit bombed out of you causes you to support those fighting the people bombing the shit out of you.

    • Morrissey 4.2

      Even monsters like Churchill and Stalin were supported overwhelmingly by their people in times of war.

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