Treasury advised government not to buy rail enabled Cook Strait feries weeks before it announced it would
Minister for Rail Winston Peters announcing the Cook Strait ferry replacement plan back in March.
Photo:
RNZ / REECE BAKER
Treasury advised the government not to buy rail enabled Cook Strait ferries three weeks before it announced it would.
On March 31 the government announced it would buy two new Interislander ferries to be delivered by 2029 to replace the current aging fleet.
It came in wake of Finance Minister Nicola Willis having pulled the plug on
the previous government's Cook Strait mega ferry plan
named iReX in 2023.
The ships announced in March would be 200 meters long and rail enabled, which meant rail freight could be rolled on and off them.
New documents revealed under the Official Information Act show just 20 days earlier on March 10, Treasury recommended the government buy non-rail enabled ships.
The agency said the option would be cheaper while achieving the aim of the project.
"There are operational advantages from rail-enablement, but these do not fully offset the increased capital cost."
The Ministry of Transport also cast doubt on the move, and last year a Ministerial Advisory Group recommended the government buy two non-rail enabled ferries.
Meanwhile the Ferry Holdings Company which was set up in March to lead contractual negotiations with shipyards and ports supported a decision to buy rail enabled ferries.
"The simplest and most efficient method of moving freight across Cook Strait is by rail enabled ferries."
In a statement to RNZ Rail Minister Winston Peters said that officials took a narrow approach on the consideration of the ferry options.
"They were effectively on autopilot, believing the government would agree to end 60 years of Interislander connecting road and rail."
Peters said he did not agree with the advice Treasury provided.
"Their advice was so blinkered that it consistently presented its recommended solution as "cheaper" even when their own analysis showed the option we selected had the lowest overall cost and the highest economic value."
Treasury declined to comment on Peters' statements.
Sign up for Ngā Pitopito Kōrero
,
a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
RNZ News
2 hours ago
- RNZ News
Teenagers who gain work experience at school more likely to be employed by age 20
Gateway supported short-term, work-based placements while Trades Academies provided learning in trades-related. (File photo) Photo: Supplied/ UCOL Teenagers who gain trade and workplace experience at school are more likely to get a qualification and complete apprenticeships, a report finds. A Ministry of Education report said students who participated in the Gateway and Trades Academy programmes were also more likely to be in substantial employment by the age of 20 than other students with similar characteristics. The report considered the cohorts that participated in the programmes in 2014 and in 2018 and compared their education and employment outcomes with similar students who did not participate. It said Gateway was set up in 2001 and supported short-term, work-based placements while Trades Academies had provided learning in trades-related fields since 2010. "Both programmes increased the likelihood of students staying in education at age 17 and achieving a Level 2 or higher qualification by age 18. "These effects were consistent across genders and ethnic groups," the report said. "Men in both programmes were more likely to enrol in and complete apprenticeships, though rates remained lower for Māori and Pacific men. Women's apprenticeship participation remained low. "Both programmes reduced the likelihood of being in limited employment and increased students being in substantial employment, particularly for men. "Gateway had a stronger effect than Trades Academies in reducing limited employment for women, especially Māori and Pacific women." The report said 87-90 percent of Gateway and Trades Academy students had a level two qualification by the age of 18, compared with 78-79 percent for similar students who had done neither programme. It said 10-12 percent had completed an apprenticeship by age 24, compared with six percent for similar students. About a quarter of the group of similar students were in limited employment when they were 18, compared to 16-19 percent for the cohorts that had participated in the programmes. By age 20, 46-53 percent of the Trades Academy and Gateway cohorts were in substantial employment, compared with 35-38 percent for the group that had done neither programme. The report said the programmes appeared to have "a protective role for educational participation and achievement during the pandemic". Sign up for Ngā Pitopito Kōrero , a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
RNZ News
9 hours ago
- RNZ News
How to get into the housing market with $80
HomeShare has worked with the Financial Market Authority to finetune its offering. Photo: Supplied/Susan Edmunds If you want to get into the property market, but don't have the money to do so, you may be about to get your chance - again. New fintech start-up HomeShare plans to launch later this year, offering investors the opportunity to buy a share in residential property. If that sounds familiar, that's because it's not the first attempt to offer this sort of investment scheme - The Property Crowd and The Ownery have both tried it within the past decade. In 2022, the Financial Markets Authority suspended the crowdfunding licence of The Property Crowd, after it contravened licensee obligations. No investors were using the platform at that point. The Ownery launched in 2016, offering shares in an Ellerslie house, but there was reportedly underwhelming investor interest and less than a quarter of shares were sold. It has not responded to a request for comment. Homeshare founder Martin van Blerk said the key difference between those previous attempts and his latest was that he had worked with the Financial Markets Authority in its fintech sandbox. The 'sandbox' is designed to encourage innovation, and allow participants to test their new products and services in a controlled environment, getting a better understanding of what the regulator will expect of them and adjusting as required. Van Blerk said HomeShare would offer 10,000 shares in a property based on an independent valuation. Its first property would be in Hamilton. People could buy single shares or many. On an $800,000 property, a share would be $80. Martin van Blerk is aiming for an October launch for HomeShare. Photo: Supplied/Susan Edmunds "The goal is making housing more affordable, more transparent and just easier to access for a lot of people, who'd otherwise be locked out, either because they don't have enough for a deposit or a mortgage, or they just don't know how to go about it." He said he aimed for an October launch and hoped to eventually have properties all over New Zealand. "Instead of buying one property in Auckland, you could buy shares in 100 throughout New Zealand, so it's a great way to diversify risk for property owners." Owners would receive a proportionate amount of rental income from the property and pay a proportional amount of the cost of ownership, including maintenance. People who wanted to exit their investment could sell their shares on HomeShare's secondary marketplace, as long as the price was set within what the company said was a reasonable range. Fees would be charged when shares were bought and sold. For first-home buyers, the fee is 0.95 percent "or slightly higher if you're a traditional investor". Van Blerk said the model had proved popular in other countries. "New Zealand is sort of lagging behind. I think this is a chance to put us at the front of a shift that's happening." Sign up for Ngā Pitopito Kōrero , a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
RNZ News
13 hours ago
- RNZ News
NZSIS head reminds ethnic communities to be vigilant about foreign interference
Andrew Hampton, director-general of the New Zealand Security Intelligence Service. Photo: RNZ / Liu Chen The head of the New Zealand Security Intelligence Service (NZSIS) has reminded people to stay vigilant to foreign interference and ask questions if in doubt. About 300 ethnic community leaders from across the country gathered in Auckland on Saturday for the fourth Ethnic Advantage Conference organised by the Ministry for Ethnic Communities. The discussions were centred around social cohesion with foreign interference as one of the featured topics. In a panel discussion, director-general of NZSIS, Andrew Hampton, explained what foreign interference was and reminded people to be vigilant. Ethnic community leaders at the Ethnic Advantage Conference on 28 June, 2025. Photo: RNZ / Liu Chen Hampton said remembering democratic principles could be helpful, for example, people can have different views but working for a foreign state to influence New Zealand was problematic. He said community leaders had an important role to play in maintaining dialogue between each other and sharing information. His department would continue to build trust and relationships with the ethnic communities, Hampton said. "It's not a destination, it's a journey, but the consequences of us not continue this journey are dire when it comes to national security." NZSIS would continue to shed light on foreign interference, provide information to community leaders, make sure the department was accessible and approachable, and its workforce reflected the communities, Hampton said. Mark Mitchell and ethnic community leaders at the Ethnic Advantage Conference. Photo: RNZ / Liu Chen Mark Mitchell, the minister for ethnic communities said New Zealand can't be naive and believe that it's invincible from foreign inteference. "We do have countries that try to interfere with their diasporas," he said. "But here in New Zealand, we have to make sure as a government we're doing everything we can do to protect them and to call out those nations when they engage in that sort of behavior." Speaking of social cohesion, the minister called for people to endorse peace and tolerance. Mitchell said with the current geopolitical tensions, New Zealand was facing serious headwinds and was in a more challenging environment compared with decades ago. Ethnic community leaders at the Ethnic Advantage Conference. Photo: RNZ / Liu Chen "One of the primary messages that we have had ministry and myself, is that we're entering a phase now where our conversation should be around social cohesion and peace and tolerance," Mitchell told the audience. He alluded to the Destiny Church march in central Auckland a week ago, and said people should be united, condemn and not buy into the provocation it tried to incite. He said New Zealand should be proud of where it was but people needed to make sure they don't lose ground. "...Recognising always the ability to engage in peaceful protest and freedom of speech, but with that comes great responsibility, and with that also comes a clear message to do it whilst in a peaceful and tolerant way." Individuals should also take responsibility for the way they receive and process information, as there was a lot of disinformation and misinformation around, he said. Chief executive at the Ministry for Ethnic Communities, Mervin Singham Photo: RNZ / Liu Chen Chief executive at the ministry, Mervin Singham, said social cohesion and countering foreign interference are interconnected. "From my perspective, the first line of defense [against] foreign interference is community cohesion," Singham said. "So if people in New Zealand, wherever they come from in the world, if they feel they belong here, they matter, they enjoy the equitable environment that they live in..., then they will be less susceptible to being influenced to doing things that they shouldn't in this country and that's not in the interest of New Zealand." Singham said people could be a little bit nervous about this topic because their connection with a foreign country or their sense of pride in their country of origin. "What we don't want as the panel just discussed is people becoming involved in coercive activities that are not in the interest of the country," he said. "For example, stealing intellectual property, not for New Zealand's interest, for foreign state or pressuring people to doing things that they don't want to do, but they feel they're obliged because of the threat of oppression from an offshore state." There were resource tools on the ministry's website which people could use to educate themselves about the topics, for example where to go to report an interference, Singham said. Soon, the tools, launched earlier this year, would be available in 30 languages, he said. "They might be able to be more vigilant about how influence is slowly leading into interference, those sorts of things. This is where the power of the community lies." Community advocate Eva Chen. Photo: RNZ / Liu Chen Community advocate Eva Chen said the discussion on foreign interference was a good reminder, but more information and clarity was needed from the government. "I always felt that the topic of foreign interference is far away from our day-to-day lives but today hearing from the panel, I got to know that it isn't that far away." However, she would appreciate more guidance from the officials about the specific activities and what kind of information they need from the community. "It's good that we're reminded to be vigilant, but for grassroots people like us, it feels far away and something that isn't likely to happen... we might not know how to be vigilant." Chen agreed social cohesion and foreign interference were interlinked. "If we're living in a loving society, being helpful to each other, then there is less likelihood of foreign interference. "However, if we have our own agendas... especially when the New Zealand government is not providing us with enough resources, and we need to seek help from the outside world, we might be susceptible to foreign interference when we're not vigilant enough." Sign up for Ngā Pitopito Kōrero , a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
