The Government is in a rather precarious position relating to the contract to replace the ageing Cook Straight ferries, which clearly need replacing.
The last Labour Government had a difficult time with the issue. The contract to replace the ferries with modern rail enabled ferries clearly was the right decision.
But the need to make sure that Wellington and Picton wharves were up to scratch and optimal made the decision more complex and more expensive.
You would think however that making sure that they are earthquake proof and climate change proof was something that should happen anyway. Perhaps Grant Robertson was right to push back on the actual scale and cost of the project. But it really feels like something that should be business as usual not something that could be avoided.
This Government chose to go to town on the issue and claim they were better financial managers and could save us all of this money and get a useable Toyota Corolla instead of the Rolls Royce they were depicting the new ferries as being.
But the recent grounding of the Aratere showed what bad shape the ferries are in and how vital it is that replacements should be obtained as soon as possible. This event clearly showed that the decision to purchase new ferries was the right one and they cannot arrive soon enough.
There are a couple of twists to the story.
The Government’s language around ending the contract is loose and the reality is there is something between a unilateral repudiation and a furious renegotiation around the scope of the project.
This has made us an international Banana Republic laughing stock. Who would do business with a sovereign state that will welch on contracts just to gain a political advantage over its rival? Good luck to National to find a firm to construct the ferries and deliver them in the near future.
And there are hints that behind the scenes there is a furious fight between anti rail forces in National and pro rail forces in New Zealand First.
Clearly National does not like the fact that the ferries are so rail enabled and will contribute so much to the rail system.
Why else would you appoint an advisory board that includes a director of a trucking firm and Auckland airport, the Nelson Airport Chief Executive, and a former National MP? Where is the rail expertise? Where is the advocate for sustainable and future focussed transport systems?
National is also dumping all over Kiwirail. Ad is right in contending that Kiwirail or aspects of it could be prepared for sale.
This is a big test of the Government’s commitment to use the power of the state to protect and upgrade the country’s important infrastructure. I get the horrible feeling they will fail miserably.
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