Source: Radio New Zealand
Rail Minister Winston Peters. RNZ / Samuel Rillstone
The Rail Minister has lifted the lid on how the government plans to save cash on the new Cook Strait ferries.
The costings have been revealed for the project which will see two new ships sail into New Zealand in 2029 with new port infrastructure.
When Finance Minister Nicola Willis pulled the plug on iReX, the previous government’s mega ferry project, she said at the time costs had quadrupled since 2018 to $3 billion.
Willis stated the spiralling costs were largely due to the port side infrastructure in Wellington and Picton.
The iReX project included new terminal buildings on both sides of the Cook Strait, an upgraded rail yard in Wellington and significant flood protection work.
The new plan strips back those costs by reusing much of the existing infrastructure – with the taxpayer expected to pay less than $1.7 billion.
Rail Minister Winston Peters said at a press conference on Wednesday they were saving billions.
“In fact, we have saved the taxpayer $2.3 billion… one more time we have saved the taxpayer $2.3 billion.”
That calculation was based on the iReX project blowing out to $4 billion, a figure he has said in the past Treasury warned the previous government it could cost.
Wellington Mayor and former cabinet minister Andrew Little said it was good they have been able to find a fix to the huge port costs.
“I think they have got a different solution on infrastructure; something had to happen because the infrastructure costs were going to be astronomical.”
Marlborough Mayor Nadine Taylor said it provided direction for the community.
“We have been through the iReX iteration, now we are into the new project and today’s announcement gives us that level of certainty.”
She accepted that Picton would not get the new terminal pitched as part of iReX.
“I think that it is in line with the government’s pragmatic reuse policy, and you know as a country we have to be sensible about these things.”
Peters would travel to China next week with Ferry Holdings Limited to acknowledge the contracts with Guangzhou Shipyard International.
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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand
