Government ferry decision a case of political steering failure

The Government’s U-turn on purchasing new Interislander ferries is the predictable but costly outcome of flawed decision making.

The Mari­time Uni­on says the Government’s U‑turn on pur­chas­ing new Inter­is­lander fer­ries is the pre­dict­able but costly out­come of flawed decision mak­ing.

The Gov­ern­ment has said it is now look­ing at build­ing new fer­ries again fol­low­ing the advice of the Min­is­teri­al Advis­ory Group.

Mari­time Uni­on of New Zea­l­and Nation­al Sec­ret­ary Carl Find­lay says the ground­ing of the Aratere last week has now brought home the ser­i­ous­ness of the situ­ation of our inter-island fer­ries.

“The iRex pro­ject for new fer­ries and ter­min­als should have been recon­figured rather than can­celled out­right.”??

He says the claimed sav­ings by the Gov­ern­ment do not stack up.  

“There needs to be an account­ing of costs incurred up to now, includ­ing any break fees, a far high­er price point for new builds ordered now, and a prob­able five year wait for new ves­sels to come into ser­vice.”

Mr Find­lay says industry sources have sug­ges­ted that the all up cost of the new builds could be up to $1.2 bil­lion – more than double the $551 mil­lion cost of the ves­sels for the can­celled iRex pro­ject.

The cur­rent fer­ries will all be well over thirty years old by 2029. Main­ten­ance costs have doubled on the age­ing fer­ries to an estim­ated $65 mil­lion a year.

Mr Find­lay says it is unac­cept­able that crew and pas­sen­gers will be exposed to risk caused by fail­ure to invest in fer­ries and infra­struc­ture.

He expressed grave con­cern the pro­posed new fer­ries would not be rail cap­able.

“This means double hand­ling of con­tain­ers, adding sub­stan­tial costs for freight cus­tom­ers, delays and under­min­ing the sup­ply chain.”

Mr Find­lay says none of this takes into account that the Pic­ton and Wel­ling­ton ferry ter­min­als both still require mod­ern­iz­a­tion.

The Mari­time Uni­on says new fer­ries have to be rail cap­able and there needs to be a plan for ter­min­al upgrades in both Wel­ling­ton and Pic­ton.

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Welcome to the Maritime Union

The Mari­time Uni­on of New Zea­l­and was formed in 2002 when the New Zea­l­and Water­front Work­ers’ Uni­on and the New Zea­l­and Sea­farers’ Uni­on joined togeth­er. We rep­res­ent water­front work­ers, sea­farers and related work­ers in New Zea­l­and.

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