Ferries decision a win for taxpayers

“Taxpayers are the winner from today’s Cook Strait ferry announcement. The Government has delivered a solution at a fraction of the cost of Labour’s plan and is opening the door to private investment in the process,” says ACT Leader David Seymour.

“This Government is committed to having a resilient, safe and reliable Cook Strait ferry service to support the movement of freight and people. ACT’s focus in this process has been on valuing taxpayers and ensuring the Government doesn't throw good money after bad.

“Indicative costings for the two new ferries and landside development are approximately half the at least $3 billion cost of iReX, of which the Crown was asked to fund approximately $2.2 billion.

“ACT’s long-standing policy is to add KiwiRail to the Mixed-Ownership Model. With partially private ownership KiwiRail would have to make decisions based on economics and shareholder returns rather than politics.

“The Schedule 4A model announced today allows for private investment, with the Crown able to sell up to 49% of its shareholding. Private investment will bring private market discipline which will lead to a better and more cost-effective service in years to come.

“ACT is making the government work smarter to do more with less, so Kiwis can keep more of their own money and build a better future for themselves and those they care about.”