14 Comments

What a mess the ferries are turning out to be!

Small correction - it's ECan that sets the bus fares, not the Christchurch City Council.

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Willis is telling fairy tales if she thinks the ferries will be in service by 2029

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My observation is that Peters won the inter-island ferry debate. For that the South Island has much to thank him. By publicly mentioning the date of the 11th of December for an announcement maybe the old fox outwitted his cabinet colleagues? His interview on RNZ this morning was masterly. Seymour has been outmaneuvered with his privatize plans. Peters is a conservative with a small "c" which is precisely the value base this project demands.

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This government’s concept of plan is better value for money if (cost of 2 new ferries plus cost of upgrading shore facilities plus cost of maintaining existing ferries from 2026 until 2029 plus sunk cost of Project iRex plus break fee to Hyundai ship builders plus increased natural hazard and climate change resilience risk cost of reduced engineering specifications for upgraded shore facilities) is less than (the completed cost of Project iReX with its 2 new ships operating by 2026).

Note, this formula is incomplete, and probably understates the actual costs and benefits. It does not include the extra road maintenance for freight being transported by truck that would shift to being transported by rail if and when the new ferries are operational, any extra rail freight cost and operating cost of ferries that are not fully rail-enabled, and it does not include the increased risk of a maritime disaster with keeping the existing ferries running from 2026 to 2029.

It looks very much like this government's concept of a plan is going to cost way more on many levels than Project iReX.

It is noticeable that the government's statements about relative cost are based on incomplete cost comparisons - likely to be deliberate misinformation in my view.

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DTI guard rails only applies to existing houses. It does not apply to New Builds - so in theory could still get investors, and FHB, buying new with really high DTI borrowing.

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Thinking back to that great line ‘no ships Sherlock’ I have the descriptor for Nicola’s ferry-speak, Bullship

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The mainland is being railroaded, I'm astounded the entire south island isn't out on the streets

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A competent minister of finance who subscribes to the Atlas Network colonisation mantra and privatisation of public assets, (however misguided), would surely offer the deal of ships already under construction at a bargain price to a private investor. That would have delivered state of the art infrastructure the country needs without the break fees, inflation cost of a new start and extra 5 to 8 years delay, with associated safety and maintenance costs of an aging fleet.

But we don't have a competent minister of finance, do we.

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She graduated with a first-class honours degree in English literature from Victoria University of Wellington in 2003, and a post-graduate diploma in journalism from the University of Canterbury in 2017.

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I suppose that qualifies her for creative language that another commentator has described as bullship.

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So how the actual f*%k has Nicola Willis delivered? I used to think she was one of the better "people" in the National party, but obviously she just hasn't been given a chance to show her true blue colours. As a Wellingtonian, I'm sorry NZ that you have to listen to her.

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2029 before we have reliable ferries is disturbing and bizarre unless a govt ploy to create an opening for privatisation, with all the concerns that would bring, including potential for monopoly, or a PPP. The current ones, both Interislander and Blueridge, are known to be unsafe and we don't have strong enough tugs to help in a disaster such as the near one by Red Rocks.

https://www.nzherald.co.nz/nz/how-the-interislanders-kaitaki-ferry-narrowly-avoided-disaster/IBR3D3Q3KJD6FNJ6ABBH4P24VQ/

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Any chance @bernard can get an interview with that trucking joker on RNZ checkpoint and ask him if he’s up for paying billions for the extra roading? And does he understand that if there’s a market for infrastructure use, spare capacity drives prices down rather than up?! This doesn’t feel like a nation worth investing in?

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So the spend on Willis's ferries is $1.5 billion + the cancellation cost of iRex, say $1 billion and delay to 2029ish. iRex was going to cost around $3 billion-ish, so we get inferior ships, ports to pay for infrastructure, inefficient movement of freight off & then on trucks etc. etc.

So how is this a better deal than what was already in build?

And these people are the first to say how bad the Labour government was.

So where does that put their own level of incompetency?

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