After nine months of deliberation, the coalition government has yet to present any discussions or proposals for replacement ferries to Cabinet following the cancellation of the new fleet.
Since June, the government has been evaluating various replacement options for the Interislander ferries, with Finance Minister Nicola Willis indicating that a decision will be reached by the end of the year.
While all three coalition parties hold differing opinions on KiwiRail and the necessary ferry types, Willis believes it would be premature to attribute the delay in decision-making to a lack of consensus.
Despite ACT leader David Seymour’s revelation that there has been minimal discussion among parties on the issue, Willis clarified that discussions between ministers are ongoing outside of Cabinet, with no formal proposal having been presented to Cabinet as of yet.
Willis confirmed the existence of a formal proposal that is currently under ministerial discussion, with Seymour emphasizing the importance of conducting a cost-benefit analysis for every dollar spent on ferry replacements due to financial constraints.
ACT’s stance advocates for a mixed ownership model for state-owned enterprises like KiwiRail, contrasting with the government’s approach of maintaining full ownership and implementing rigorous policy and analysis for funding decisions.
The previous plan for two rail-enabled ferries to be delivered by 2026 was terminated in December, prompting the formation of a ministerial advisory group to explore alternative solutions following a cost escalation.
New Zealand First has expressed a preference for rail-enabled ferries, while Labour’s deputy leader Carmel Sepuloni emphasized the importance of rail connectivity and criticized the cancellation of the previous deal without a solid replacement plan.
Sepuloni suggested that Willis should resign if the alternative ferry replacement plan exceeds the previous $3 billion cost estimate, a claim that Willis refuted by assuring that her proposal would not surpass this budget.
As discussions continue among coalition partners and ministers, the future of Interislander ferry replacements remains a topic of scrutiny and debate within the government.
