The Maritime Union of New Zealand says the cancellation cost for the iRex ship build is likely to come in at more than NZ $300 million, and could run up to a maximum cost approaching a half a billion dollars (NZD) at current rates.
This would be on top of around a half a billion NZD in sunk cost on the cancelled iRex project – figures the Maritime Union has been advised on after consulting with the maritime industry here and offshore.
Maritime Union of New Zealand National Secretary Carl Findlay says the Finance Minister needs to explain how this happened and why she should keep her job.
“This single decision is likely to have torched a billion dollars of taxpayer’s money with nothing to show for it. It’s fiscal arson.”
Mr Findlay says on top of this cost, New Zealand still needs to buy new ferries.
He says unlike the iRex ferries cancelled by the Minister, which were purchased at a fixed price in 2021, their replacement will have to be bought at 2024 shipbuilding prices, which are currently at their highest since before the global financial crisis of 2008.
“Between that and our dollar being much weaker than it was when we struck the 2021 deal, the Government’s replacement ships could cost twice as much to build as the cancelled ones.”
Mr Findlay says industry players believe the Government is looking to hide some of this cost through a Private Public Partnership.
He says we’ve seen time and time again all this would do is increase the expense, and shift it onto users and future taxpayers.
“Putting a private for-profit gatekeeper on the key freight route between our main islands is a recipe for economic disaster.
“Prime Minister Luxon needs to bite the bullet, try to salvage the iRex deal in whatever way he can, and admit the cost his Finance Minister’s commercial blunder has put on the taxpayer.
“He should also ask himself whether his Finance Minister should be left in charge of running our economy after making this colossal economic and commercial mistake.”
With all due respect, I somehow doubt that the Government will be taking advice from the maritime union.
At least the maritime union have intelligent ideas. “He that trusteth in his own heart is a fool:” is an old proverb and apart from the gender is a perfect description for Nicola Willis, it also describes David Seymour as they are both totally ignorant of the damage that their decisions will cause.
Willis has consistently shown herself to be clueless with her constant complaining that Labour did not do various things when all the information has been publicly available and her laziness to actually study the government accounts is the cause of her ignorance. I can’t remember any National party finance minister who impressed me however she is the worst ever over my lifetime.
They don’t take advice from anyone. After all they have God on their side.
Dickheads.
Perhaps the Union and Labour could explain why the price of completion had increased by 100% on original price . The ferries were not the issue the habour upgrade was the killer.
Willis is to be commended for keeping a close eye on cost unlike Labour and their nonexistent bike bridge or light rail in Auckland
Trevor that has been explained multiple times .
You are just trolling bullshit as usual.
Like it or not the harbour upgrades still need to happen.
So the costs are only going to increase more than the current estimates the longer this coalition of clowns stay in power.
So your so called expert government did not have the ability to develop the port facilities for less cost so they blow almost an equivalent amount of money to get no ferry’s and you think that is commendable?
Anyone who knows anything about Engineering, especially something as complex as reconfiguring a wharf, knows that it is impossible to quantify the cost from the outset, and it is what it is.
What is for sure, is that it definitely needs upgrading, regardless of cost!
So suck it up !…get it done!.. and move on.