Ministerial group advises KiwiRail no longer run Cook Strait ferries

1News can reveal an independent advisory group has recommended to ministers that KiwiRail no longer run the Cook Strait ferries.

The group was set up earlier this year after the Government declined a KiwiRail bid for more funding which meant the axing of the mega ferry project iRex.

The ministerial advisory group privately reported back to shareholding ministers last month with a range of options for new ferries and how they would operate.

1News understands the group's preference was for a separate entity to run the ferries — possibly a new state owned enterprise so that there would still be government oversight.

Greater Wellington Regional Council chair Daran Ponter said whoever ran the ageing ferries was in for a huge challenge.

"It's very easy to lambast KiwiRail. It's a little bit of a sport at the moment. But this is not an easy operation to operate even on a good day."

Maritime Union national secretary Carl Findlay said he wanted KiwiRail to continue to run the ferries.

"Look they've got some problems, but they're trying to fix them. They're working on it... they deserve to carry on. I certainly, definitely, don't want it privatised and sold off to anyone else.".

The Interislander began in 1962 and was run by the railway department until it was sold in 1993 to an international conglomerate. In 2008,the government bought back the rail and ferry services which is when KiwiRail was established.

Transporting NZ interim CEO Dom Kalashi said recent debate about the ownership of the ferries was missing the point.

"There's always room for improvement and I would think very few, if any, people would have found their recent performance acceptable.

"I don't think this debate should be whether the government is in or out in terms of ownership of KiwiRail or Interislander. What I think needs to be the focus is: What is required to give us a safe, reliable, resilient service across that piece of water?"

In recent months, Government ministers have been openly critical of KiwiRail. Transport Minister Simeon Brown said, after the grounding of the Aratere: "We're very disappointed in terms of the asset management of the ships."

Last month, the Government also announced it planned to "refresh" the KiwiRail board after chair David McLean resigned. Two other board members have since resigned.

Prime Minister Christopher Luxon was asked at the time whether he had faith in the board and said: "Well, that's why we want to refresh the board to be honest."

Last month, 1News revealed the independent advisory group has also recommended the Government buy brand new ferries, similar in size to the current ones, and smaller than those in the iRex proposal.

Minister for State Owned Enterprises Paul Goldsmith wouldn't be interviewed on this today. He said in a statement: “Ministers have received recommendations from the Ministerial Advisory Group and are reviewing them. Cabinet will consider the next steps in future and announcements will be made after that.”

KiwiRail declined to comment when approached by 1News today.