Scoop has an Ethical Paywall
License needed for work use Register

Gordon Campbell | Parliament TV | Parliament Today | News Video | Crime | Employers | Housing | Immigration | Legal | Local Govt. | Maori | Welfare | Unions | Youth | Search


Cutting Ferry Investment To Subsidise Property Speculators Is Economic Sabotage

New analysis from the CTU shows the cost of the Government’s tax cuts for landlords will be many times more than the investment required for the much-needed Cook Strait ferry upgrade.

This shows the Government making a clear choice to back unproductive investment in property over investment in critical infrastructure that would help grow our economy and support business, says CTU Economist Craig Renney.

“National says the Inter-island Resilient Connection project is too expensive, but our analysis shows that, over the lifetime of the assets, the cost is only around $11 per New Zealander a year in today’s dollars. Contrast that to the landlord tax cuts, which would cost $139 per Kiwi each year. Landlord tax cuts are more than 12 times the cost of the Interislander project.

“This Government was elected with the slogan ‘get our country back on track’ – yet one of its first acts is to derail a vital transport link between the North and South islands, which carries $14bn of freight and 850,000 people each year.

MUNZ National Secretary Craig Harrison says “The upgrade of the Cook Strait ferries is not an option for New Zealand, it has to be done. The regular technical problems experienced by the ferries are a result of using end-of-life vessels in a challenging maritime environment.

“The failure to modernise this essential infrastructure leaves New Zealand exposed to further delays, service outages, expense for industry, and serious safety issues for crew and passengers. The Government’s decision sets back New Zealand’s transport resilience and will set New Zealand back.”

Advertisement - scroll to continue reading

Are you getting our free newsletter?

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.

RMTU General Secretary Todd Valster says “The Government has stated they want KiwiRail to provide a safe and resilient service but that conflicts with aging ferries due for replacement. KiwiRail has had rail-enabled ferries since 1962. Ferries that are rail enabled allow rail freight to be moved without freight having to come off rail wagons to travel the Cook Strait. Rail-enabled ferries are safer and more efficient to load and unload. The proposed new ferries would have produced 40% fewer emissions, and the hull is designed to have a lower impact on the marine environment”.

Craig Renney says “This is a government that claims it is economically responsible while it guts New Zealand’s freight capacity and spends billions on unproductive tax cuts for property speculators. For the future prosperity of our nation, New Zealanders need to be able to move themselves and their goods around the country in ways that get easier over time, not harder. The Government should urgently reverse this mistaken decision at the mini-Budget this week.

© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On National Passing Bad Policies Under Urgency

If National really had faith in its welfare policies, it wouldn’t be ramming them through Parliament under urgency – a step that means the policies can’t be exposed to select committee debate, public submissions, expert commentary, media scrutiny and all the normal democratic processes that this coalition appears to hold in contempt.
For example: Under urgency, the government has decided to index benefit increases in future to inflation, rather than to wages...

Government: Budget Will Be Delivered On 30 May

Plans to deliver tax relief to hard-working New Zealanders, rebuild business confidence, and restore the Crown’s finances to order will be unveiled on 30 May, says Nicola Willis. More

Government: Ministers Reaffirm Pacific Connections

Foreign Minister Winston Peters and Health Minister and Minister for Pacific Peoples Dr Shane Reti reaffirmed the importance of New Zealand’s connections to the Pacific by visiting Tonga, Cook Islands, & Samoa. More

Government: Humanitarian Support For Gaza & West Bank

Winston Peters has announced NZ is providing a further $5M to respond to the extreme humanitarian need in Gaza and the West Bank. “The impact of the Israel-Hamas conflict on civilians is absolutely appalling," he said. More

Government: New High Court Judge Appointed

Judith Collins has announced the appointment of Wellington Barrister Jason Scott McHerron as a High Court Judge. Justice McHerron graduated from the University of Otago with a BA in English Literature in 1994 and an LLB in 1996. More




InfoPages News Channels


Join Our Free Newsletter

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.