8 hours ago
Eye-Watering Break Fee For Botched Ferries
It has been revealed that the Government is paying a staggering $144 million to cancel the previous contract for the new Interislander ferries.
'Nicola Willis' terrible decision-making has now cost taxpayers more than half a billion dollars in total – $671 million – with no new ferries to show for it,' Labour transport spokesperson Tangi Utikere said.
'The $144 million break fee is on top of money already paid to Hyundai, which takes the amount of taxpayer money National has poured down the drain to $222 million. The rest is project management, landside infrastructure and paying to wind down the project – totalling more than half a billion.
'This proves Christopher Luxon and Nicola Willis have absolutely no clue what they're doing and are just making things worse.
'The amount of taxpayer money they've wasted with absolutely nothing to show for it makes a mockery of every time they've said they can't afford something.
'They can find more than half a billion dollars to botch a ferry project, but can't find any money to build homes, create jobs or fund the health system properly.
'People are struggling with the cost of living while Nicola Willis and Christopher Luxon's economic decisions run aground and sink,' Tangi Utikere said.
Notes: Original estimates of $1.16 billion referenced in the Beehive PR includes the originally budgeted $300 million for the break fee plus the cost of ongoing maintenance of the current ferries. The contract was originally going to deliver the ferries next year, in 2026. The current projection for new ferries is at least three years later.
