Category: Government

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Government ferry decision a case of political steering failure

Source: Maritime Union of New Zealand

The Maritime Union says the Government’s U-turn on purchasing new Interislander ferries is the predictable but costly outcome of flawed decision making.

The Government has said it is now looking at building new ferries again following the advice of the Ministerial Advisory Group.

Maritime Union of New Zealand National Secretary Carl Findlay says the grounding of the Aratere last week has now brought home the seriousness of the situation of our inter-island ferries.

“The iRex project for new ferries and terminals should have been reconfigured rather than cancelled outright.”??

He says the claimed savings by the Government do not stack up.  

“There needs to be an accounting of costs incurred up to now, including any break fees, a far higher price point for new builds ordered now, and a probable five year wait for new vessels to come into service.”

Mr Findlay says industry sources have suggested that the all up cost of the new builds could be up to $1.2 billion – more than double the $551 million cost of the vessels for the cancelled iRex project.

The current ferries will all be well over thirty years old by 2029. Maintenance costs have doubled on the ageing ferries to an estimated $65 million a year.

Mr Findlay says it is unacceptable that crew and passengers will be exposed to risk caused by failure to invest in ferries and infrastructure.

He expressed grave concern the proposed new ferries would not be rail capable.??

“This means double handling of containers, adding substantial costs for freight customers, delays and undermining the supply chain.”

Mr Findlay says none of this takes into account that the Picton and Wellington ferry terminals both still require modernization.

The Maritime Union says new ferries have to be rail capable and there needs to be a plan for terminal upgrades in both Wellington and Picton.

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Ferry debacle means New Zealand is ‘steering blind’

Source: Maritime Union of New Zealand

Confusion around the future of KiwiRail’s Cook Strait ferries has left New Zealand ‘steering blind’ with its main inter island transport link, says the Maritime Union.

The latest development in the ferry saga is a suggestion in ministerial documents that KiwiRail might exit the Cook Strait ferries altogether if it is commercially unviable without subsidy.

Briefing documents from the Ministerial Advisory Group and Ministry of Transport have been released to the media under the Official Information Act.

Maritime Union of New Zealand National Secretary Craig Harrison says this scenario is deeply concerning and shows the Government has dropped the ball on transport.

Mr Harrison says he is surprised no one in the Government could foresee the consequences of cancelling iRex project funding last year.

“Within a few months we have gone from looking forward to modern ferries and fit for purpose terminals that would support our economy and producers for decades, to the future of interisland transport and everyone who relies on it being in free fall.”

He says while Strait Shipping currently offer ferry services that complement KiwiRail ferries, the scenario of putting the entire connection in the hands of a single overseas-owned monopoly would be a grave error, and would probably not be viable.

“The idea there is some magic market solution is not credible, because any operator will still have to source and pay for suitable vessels.”

He says the primary focus of interisland ferries should be their importance in the supply chain and the national economy, which included rail capability.

“The Cook Strait is part of the ‘blue highway’ – an extension of our national road and rail links.”

Mr Harrison says the current ferries are nearing end of life and are experiencing ongoing maintenance issues, with potentially catastrophic outcomes.

Interisland ferry Kaitaki lost power on its approach into Wellington Harbour on 28 January 2023, and was left drifting towards the coast in heavy weather with more than 800 passengers and 80 crew on-board. It issued a mayday before managing to restart engines and returning to port.

KiwiRail is now facing a health and safety charge relating to this incident brought by regulator Maritime New Zealand.

“Continuing to lease second hand vessels would still be costly, and mean there will still be ageing ferries on Cook Strait, increasing the risk of mechanical failure, delays, maintenance costs, and safety risks.”

Mr Harrison says the costs of cancelling the project at Korean shipbuilders Hyundai has not yet been confirmed but could run into hundreds of millions of dollars.

A suggestion by KiwiRail that the ferries be built, then on sold in order to try and recoup some of the cost of the cancelled project, was quashed by the Minister of Finance.

However, it has been reported the new Ministerial Advisory Group on the ferries has suggested this could be a potential option to avoid a massive financial loss.

Mr Harrison says further drawbacks include the failure to move to new low-emission technology and the implications for our climate change response.

Globally-recognised Climate Bonds Initiative certification issued to KiwiRail for a $350 million green loan has been revoked due to the cancellation of the ferry purchase.

The Maritime Union view is the Government should review the entire decision to cancel the new ferries and new terminals, says Mr Harrison.

“There is an opportunity to revisit the project, seek cost savings if required, then get on with the only responsible course of action which is a fit for purpose Cook Strait ferry link with modern vessels and terminals.”

He says it is now clear that planned tax cuts are not feasible as essential infrastructure investment has to take priority.

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Ferry unions demand Finance Minister resign over Cook Strait debacle

Source: Maritime Union of New Zealand

Four unions representing maritime and rail workers have condemned the Government’s decision to effectively cancel the Cook Strait iRex ferry upgrade project, and are demanding the resignation of the Minister of Finance for the decision.

The four unions are the Maritime Union of New Zealand representing seafarers, the Rail and Maritime Transport Union representing rail workers, the New Zealand Merchant Service Guild representing ship’s masters and officers, and the Aviation and Marine Engineers Association representing marine engineers.

Maritime Union of New Zealand National Secretary Craig Harrison says it is not tenable that such a major decision with massive implications for the economy should be made in such a ‘fast and loose’ manner.

“This is far more than a fiscal decision – this decision shows poor judgement and a total lack of understanding of the importance of a functioning Cook Strait connection to New Zealand’s supply chain.”

He says the ongoing technical issues with Cook Strait ferries are a result of end of life vessels being used on a notoriously challenging crossing and had resulted in serious incidents in the last few years. 

“The can has been kicked down the road for years and the upgrade has to happen now.”

“This Government campaigned on getting our transport infrastructure sorted and their first move is to basically jeopardize the future of road and rail transport between the North and South Island.”

Rail and Maritime Transport Union General Secretary Todd Valster says the ferry upgrade project was an essential part of maintaining a ‘fit for purpose’ national transport system initiated by the previous Labour Government.

He says the new Government’s decision to dump the project was reckless and indicated an agenda to run down key parts of our transport infrastructure.

“The iRex project would deliver fit for purpose, modern vessels and terminals, that would provide reliability, resilience, low emissions and a safe service.”

Mr Valster says the iRex project would deliver a long term solution for the Cook Strait over decades, which justified the cost of the project.

He says the Minister of Finance and the Government had made an irresponsible decision that would cost millions to rectify by breaking contracts with overseas suppliers, and leave the Cook Strait connection with third rate, ageing infrastructure.

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ACT-dominated Luxon Government would be a disaster for working people

Source: Maritime Union of New Zealand

The Maritime Union says a late shift in the polls indicates that New Zealand workers are becoming aware of the dangers of a change of Government and extreme right-wing policies. 

Maritime Union of New Zealand National Secretary Craig Harrison says the majority of New Zealanders are working people who need pro-worker policies.

“We are sounding the alarm that a Christopher Luxon Government would be dominated by the ACT Party and would wage war on workers.”

He says the destruction of Fair Pay Agreements and re-introduction of 90 Day Trials would push down wages and conditions for New Zealand’s most undervalued essential workers.

Even more extreme ACT policies include a three-year freeze on rises in the minimum wage and attacks on sick leave entitlements would plunge thousands into financial hardship and poverty.

“Christopher Luxon is out of touch with the struggles of the working class of Aotearoa New Zealand. He does not understand the struggles of everyday people. He will give ACT whatever they want to get the numbers he needs.”

“Tax cuts for mega landlords, cuts to public services, and making life harder for workers – this is not a positive vision and will make our society less fair, less successful and less caring.”

Mr Harrison says the latest analysis of National Party tax policy shows any benefits would largely flow to the already wealthy, not the supposed squeezed middle.

“The message from the Maritime Union to our members and all workers and their whanau is to use your vote to build a better future for yourself.”

Mr Harrison says the National–ACT combo also have a backward and outmoded approach to transport policy.

“It is clear that there needs to be a mode shift to resilient and low emission modes like coastal shipping but National–ACT have no solutions for a rapidly changing world.”

In contrast, Mr Harrison says substantial progress in the ports and shipping sector in the last term needs to be continued under a Labour-led Government.

He says three key successes of the current Government have been in building coastal shipping capability, improving health and safety through the Ports Health and Safety Leadership Group, and laying the foundations for improved conditions in the industry through Fair Pay Agreements.

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National strategy required for future of New Zealand ports and shipping

Source: Maritime Union of New Zealand

The Maritime Union says there needs to be national level planning around ports and coastal shipping, otherwise New Zealand is going to find itself in a bad position.

Maritime Union of New Zealand National Secretary Craig Harrison says there needs to be a stronger response to building resilience into the supply chain.

The Productivity Commission has noted disruptions to global supply chain trends are likely to become more frequent with causes including pandemics, war and climate change.

Mr Harrison says the Union is calling for political solutions including a port strategy and investment in coastal shipping.

He says one problem is how New Zealand ports are primarily seen as income streams for owners, as opposed to national infrastructure that underpins the successful functioning of the economy.

An example of lack of co-ordination is the multiple conflicts around the future of the Port of Auckland, he says.

“In the case of Port of Auckland, we have major roading and rail projects being proposed at the same time as a privatization agenda and plans to shrink the port despite no clear alternative capacity – in other words, total confusion.”

He says claims there can be a straightforward relocation of port activities to Northport (Whangarei) or Tauranga are unrealistic.

“Northport does not even have a rail link at this stage, and Tauranga is operating close to capacity. This situation is not going to be resolved by highway mega-projects that simply move congestion around.”

He says with ongoing climate-driven weather events becoming more severe, proposals to sink more and more resources into roading projects shows a refusal to face facts. 

Mr Harrison says there needs to be a strategic shift to build the role of coastal shipping.

He says New Zealand coastal shipping provided resilience that was demonstrated during COVID and during natural disasters such as earthquakes or flooding, when regional land links were out of action.

“For a fraction of the enormous price tag of monster motorways, New Zealand could become a leader with investment into low emission coastal shipping, and create safer, less congested roads.”

“The recent Government investment and resulting growth in coastal shipping shows the potential but there needs to be an integrated shipping and ports policy to build on this.”

He says that the Maritime Union is campaigning for changes to the Maritime Transport Act to promote New Zealand shipping and maritime jobs.

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NZ rural health group’s future in the balance

Source: MakeLemonade.nz

Headline: NZ rural health group’s future in the balance

 Napier – The future of The Rural Health Alliance Aoteroa New Zealand (RHAANZ) is in the balance tonight after the government has failed to promise support of the national rural health group. RHAANZ chair Dr Martin London and chief executive Michelle Thompson met the Rural Communities Minister Damien O’Connor in Napier today to discuss the organisation’s…

The post NZ rural health group’s future in the balance appeared first on Make Lemonade NZ.