March 11, 2025 • 10 mins
Local Government Minister Simon Watts has called in Wellington Water for a “please explain” and sought advice on potential Government intervention. What could intervention look like, and is it likely?
Also, Kiwirail is laying off more than 200 workers as the organisation tries to find savings. What does this mean for the state owned enterprise?
NZ Herald Wellington issues reporter Georgina Campbell joined Nick Mills for the Capital Letter.
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:07):
You're listening to the Wellington Mornings podcast with Nick Mills
from News Talks EDB Taking the Pulse of the City,
The Capital Letter on News Talks AB.
Speaker 2 (00:18):
Joining us for a regular Capital Letter. Slaughter's New Zealand
held Wellington's Issues reported Georgiana Campbell, Good morning.
Speaker 3 (00:24):
George, Good morning Nick.
Speaker 2 (00:26):
Local government minister has floated the idea of a government
intervention in Wellington Water. What the hell he put?
Speaker 1 (00:34):
He put?
Speaker 2 (00:34):
He put an observer into the council. That hasn't made
much difference.
Speaker 3 (00:39):
Well, I just think that this could have been missed
last week, this detail that the government is actually seeking
advice on potential intervention in Wellington Water. Obviously, there has
been a lot of news and developments in the story
after those two scathing reports about Wellington Water were publicly released.
(01:02):
But simon what the Minister for Local Government has confirmed
that he is seeking advice. He at lasts that we
heard he expected to meet with Wellington Water Tim and
Nick Leggett sometime this week. We don't know what the
outcome of that advice is from officials on potential options
for the government to intervene, but some and what's is
(01:24):
cerdainly asking you know, for some advice on what powers
he has, and you know, proactively sort appointed to the
fact that, you know, there is a Crown observer at
Wellington City Council at the moment, so it will be interesting,
you know, if he does decide to do that. It's
certainly not a good look for Wellington having a Crown
observer at Wellington City Council, and you know, potentially some
(01:48):
intervention at Wellington Water as well.
Speaker 2 (01:51):
I mean Wellington Water. If the story can get possibly worse,
I can't, can it.
Speaker 3 (01:58):
I mean, yeah, it's it's certainly hasn't been good for
Wellington Water in the past couple of weeks, for the
past few years for that matter. You sort of think,
surely it can't get worse than this, But then we get,
you know, another report which highlights and unveils another failing
(02:18):
by the water company. So you know, you never know.
I suppose what scares.
Speaker 2 (02:23):
Me, George, and I don't need you to comment on
and if you don't want to, But what scares me
is they don't want to look back. They don't want
to actually look back and give us the answers. They
just say, we've got it under control, We've looked and
opened the bonnet. We've looked that, we know what's gone wrong.
We're going to sort it out. But where none the wiser.
Speaker 3 (02:41):
I think, you know, there is certainly an appetite you know,
it seems from the likes of Nick Leggett and the
new chief executive to you know, proactively go and and
and you know, say to staff, you know, like come
to us, let us know what's happening, you know, and
(03:01):
fenness and then they have commissioned these reports. So there
is an appetite too, you know, understand the problems I
think in fairness.
Speaker 2 (03:10):
Now ki rail is restructuring and losing a few hundred jobs.
Now do they have a few hundred jobs to lose?
Speaker 3 (03:19):
Yeah, this is really interesting and it's kind of slowing
under the radar a little bit. K we Rail has
reduced its head count by two hundred and twenty seven
people and it's also signaled further gob cuts this year
as part of a bid to get match fits. So
we know that Keevy Rail is not performing as well
(03:41):
as a code. I think everybody agrees on that. You know,
its financial outlook has certainly been raised as a concern
by ministers and it's been put under the microscope. So
Kirvy Rail has reported this reduction in its head count.
Of those two hundred and twenty seven people, eighty were
(04:04):
voluntary redundancies. Accept it and it's yeah, sort of saying
that going into twenty twenty five, it wants to get
match fit that sort of it's it's catchphrase if you like.
So I think, you know, they're really trying to, you know,
look at where they can generate some savings, look at
(04:25):
where they can do things better and try and try
and turn things around.
Speaker 2 (04:31):
Can they.
Speaker 3 (04:34):
Well, they certainly. I mean the fact that they are
doing some quite serious restructuring shows that there is an
appetite to try and turn it around. And you know,
ministers have had some pretty you know, sharply wooded letters
sent off to kbi Row. So I think that they
know that the pressure is on and you know, like
(04:55):
I think that they will want to prove as well
that they are capable of running that in trial in
at Ferry service in particular into the future. Because we
know that the Ministry of Transport is you know, looking
at there, it is appropriate that Kii Raw continues with
that service. And Kelly Raw has certainly said in all
of it statements to me that it very much wants
to and plans to run the service into any.
Speaker 2 (05:18):
Any murmurs at all about what's happening there is there
you know, is you know, are we any closer to
getting an answer from Winston Peters?
Speaker 3 (05:28):
Well, I think we can expect to hear something by
the end of this month. You know, there isn't a
lot of information out in the public arena about what's happening,
and I don't think that there will be until Cabinet
has made decisions. So it does leave a lot of
room for speculation in the meantime. But you know, I
(05:50):
would I'd be very disappointed if we didn't have, you know,
a considerably firmer plan by the end of this month
out in the public arena.
Speaker 2 (05:59):
And it's almost like for me that Winston Peters is
hanging his cap on this peg. You know, he says,
give it to me, ordered out you you have you
haven't to Nicola Willis, you haven't come up with a
good enough idea or plan, Give it to me. I'll
come up with someone. So if he fails on this,
it's I don't think it's a good look for him,
and I don't think he will. No.
Speaker 3 (06:19):
I mean, you know, Winston Peters is obviously a smart
political operator and he's very experienced. He's been in politics
for a long time. You know, the fact that he
is now the Minister for Rail, you know, sues a
lot about the level of control that he has taken
on this project and it is now his responsibility to
deliver the theories. But it will be very interesting to see,
(06:41):
you know, what he comes up with the conversations he's
been having with you know, various people, and you know,
whether there will be some sort of private sector involvement
of we know that you know there have been private
sector proposals that have been put to Treasury. Uh. And
also that question of whether these theories will be rail
(07:03):
enabled or not.
Speaker 2 (07:04):
I definitely think they will be, because that's why you
got involved. But anyway, that's me speaking, not you, speaking
of Kiwi Rail. Ports on both sides of the Cooks
straight are a bit worried. They're a bit concerned about
working with Kiwi Rail after what happened was the Mega
Faery project. Explain that one to me.
Speaker 3 (07:20):
Yeah, So I've just been sifting through some proactively released
documents from last week and These documents include reports by
the Ministerial Advisory Group tasks with finding a solution to
replace the aging and trilent aflete And I just thought
it was interesting that in June last year that group,
(07:41):
Chim and Mark Thompson said that the ports, you know,
we're feeling a bit reluctant to work with kiv Rail
after the Mega faery fallout, you know, just noting that
the ports have deferred investment in their infrastructure for coming
close to a decade due to the fact that Kiri
Rail have been working on these mega ferries since twenty fifteen.
(08:02):
And of course you know that project really did heads south,
was considerable budget blowouts. But you know when Ston Peter's
the Minister for Rail, notes that, you know, this was
mid last year and as far as he's concerned, you know,
a spokespersons for him said that he's observed that Kirry
(08:23):
Row and the two ports have shown a great willingness
to work together on a cost effective solution. But you know,
I think it's pretty understandable that there might be some hesitance,
or at least there certainly was some hesitance about working
with Kerry Raw, you know, given the kind of shimmoggl
that was the Mega Fairy Project.
Speaker 2 (08:42):
It's kind of feels a little bit like to me,
we I'm going to use the word weird, that this
is such a big deal and it seems so damn
unorganized and unplanned.
Speaker 3 (08:57):
There is in the very project in general.
Speaker 2 (09:00):
The Fries absolutely, I mean, this is a big deal
for us, and we just don't have a clue, do we.
Speaker 3 (09:05):
Yeah, it's a big deal because it is effectively an
extension of State Highway one, cook Straight. You know, it's
not just fairy passengers going off for a nice holiday
and the sounds. You know, it's also a key supply
link for freight. So yeah, I think you know, as
this drags on, you know, you do start asking those questions, well,
(09:29):
what is the plan? Because the current interland defleete can't
go on for ever and we've seen the big you know,
serious incidents that have happened like Kaientucky losing power and
drifting and Cook Straight. Like, you know, there's a lot
of politics now to the story, isn't there. But you
know the realities of them not making a decision quickly
(09:53):
enough are pretty stark.
Speaker 2 (09:55):
See George, I just just as a side pit, I
saw the little documentary thing on the theory that takes
people from Melbourne to Tasmania. I mean, I know it's
an overnight thing, it's a much bigger deal. But they
just had such a wonderful fairy and it was such
a wonderful experience, great food. I mean, why can't we
just get it right to make it a tourist attraction
(10:17):
that it once was. And it once was a tourist attraction.
Catching the ferry depict in or bat Vice versa was
an experience, So they've just got to bring it back. George,
always a pleasure. That's my little rant for the day
to KII Rail. Make it a cruise, remember cruising on
the End Island. It was so good, George. Thank you
very much. Georgina Campbell's their Issues reporter for The New
(10:41):
Zealand and Wellington's Issues reporter for the New Zealand Herald.
Speaker 1 (10:44):
For more from Wellington Mornings with Nick Mills, listen live
to news Talks It'd Be Wellington from nine am weekdays,
or follow the podcast on iHeartRadio.
You're listening to the Wellington Mornings podcast with Nick Mills
from News Talks EDB Taking the Pulse of the City,
The Capital Letter on News Talks AB.
Speaker 2 (00:18):
Joining us for a regular Capital Letter. Slaughter's New Zealand
held Wellington's Issues reported Georgiana Campbell, Good morning.
Speaker 3 (00:24):
George, Good morning Nick.
Speaker 2 (00:26):
Local government minister has floated the idea of a government
intervention in Wellington Water. What the hell he put?
Speaker 1 (00:34):
He put?
Speaker 2 (00:34):
He put an observer into the council. That hasn't made
much difference.
Speaker 3 (00:39):
Well, I just think that this could have been missed
last week, this detail that the government is actually seeking
advice on potential intervention in Wellington Water. Obviously, there has
been a lot of news and developments in the story
after those two scathing reports about Wellington Water were publicly released.
(01:02):
But simon what the Minister for Local Government has confirmed
that he is seeking advice. He at lasts that we
heard he expected to meet with Wellington Water Tim and
Nick Leggett sometime this week. We don't know what the
outcome of that advice is from officials on potential options
for the government to intervene, but some and what's is
(01:24):
cerdainly asking you know, for some advice on what powers
he has, and you know, proactively sort appointed to the
fact that, you know, there is a Crown observer at
Wellington City Council at the moment, so it will be interesting,
you know, if he does decide to do that. It's
certainly not a good look for Wellington having a Crown
observer at Wellington City Council, and you know, potentially some
(01:48):
intervention at Wellington Water as well.
Speaker 2 (01:51):
I mean Wellington Water. If the story can get possibly worse,
I can't, can it.
Speaker 3 (01:58):
I mean, yeah, it's it's certainly hasn't been good for
Wellington Water in the past couple of weeks, for the
past few years for that matter. You sort of think,
surely it can't get worse than this, But then we get,
you know, another report which highlights and unveils another failing
(02:18):
by the water company. So you know, you never know.
I suppose what scares.
Speaker 2 (02:23):
Me, George, and I don't need you to comment on
and if you don't want to, But what scares me
is they don't want to look back. They don't want
to actually look back and give us the answers. They
just say, we've got it under control, We've looked and
opened the bonnet. We've looked that, we know what's gone wrong.
We're going to sort it out. But where none the wiser.
Speaker 3 (02:41):
I think, you know, there is certainly an appetite you know,
it seems from the likes of Nick Leggett and the
new chief executive to you know, proactively go and and
and you know, say to staff, you know, like come
to us, let us know what's happening, you know, and
(03:01):
fenness and then they have commissioned these reports. So there
is an appetite too, you know, understand the problems I
think in fairness.
Speaker 2 (03:10):
Now ki rail is restructuring and losing a few hundred jobs.
Now do they have a few hundred jobs to lose?
Speaker 3 (03:19):
Yeah, this is really interesting and it's kind of slowing
under the radar a little bit. K we Rail has
reduced its head count by two hundred and twenty seven
people and it's also signaled further gob cuts this year
as part of a bid to get match fits. So
we know that Keevy Rail is not performing as well
(03:41):
as a code. I think everybody agrees on that. You know,
its financial outlook has certainly been raised as a concern
by ministers and it's been put under the microscope. So
Kirvy Rail has reported this reduction in its head count.
Of those two hundred and twenty seven people, eighty were
(04:04):
voluntary redundancies. Accept it and it's yeah, sort of saying
that going into twenty twenty five, it wants to get
match fit that sort of it's it's catchphrase if you like.
So I think, you know, they're really trying to, you know,
look at where they can generate some savings, look at
(04:25):
where they can do things better and try and try
and turn things around.
Speaker 2 (04:31):
Can they.
Speaker 3 (04:34):
Well, they certainly. I mean the fact that they are
doing some quite serious restructuring shows that there is an
appetite to try and turn it around. And you know,
ministers have had some pretty you know, sharply wooded letters
sent off to kbi Row. So I think that they
know that the pressure is on and you know, like
(04:55):
I think that they will want to prove as well
that they are capable of running that in trial in
at Ferry service in particular into the future. Because we
know that the Ministry of Transport is you know, looking
at there, it is appropriate that Kii Raw continues with
that service. And Kelly Raw has certainly said in all
of it statements to me that it very much wants
to and plans to run the service into any.
Speaker 2 (05:18):
Any murmurs at all about what's happening there is there
you know, is you know, are we any closer to
getting an answer from Winston Peters?
Speaker 3 (05:28):
Well, I think we can expect to hear something by
the end of this month. You know, there isn't a
lot of information out in the public arena about what's happening,
and I don't think that there will be until Cabinet
has made decisions. So it does leave a lot of
room for speculation in the meantime. But you know, I
(05:50):
would I'd be very disappointed if we didn't have, you know,
a considerably firmer plan by the end of this month
out in the public arena.
Speaker 2 (05:59):
And it's almost like for me that Winston Peters is
hanging his cap on this peg. You know, he says,
give it to me, ordered out you you have you
haven't to Nicola Willis, you haven't come up with a
good enough idea or plan, Give it to me. I'll
come up with someone. So if he fails on this,
it's I don't think it's a good look for him,
and I don't think he will. No.
Speaker 3 (06:19):
I mean, you know, Winston Peters is obviously a smart
political operator and he's very experienced. He's been in politics
for a long time. You know, the fact that he
is now the Minister for Rail, you know, sues a
lot about the level of control that he has taken
on this project and it is now his responsibility to
deliver the theories. But it will be very interesting to see,
(06:41):
you know, what he comes up with the conversations he's
been having with you know, various people, and you know,
whether there will be some sort of private sector involvement
of we know that you know there have been private
sector proposals that have been put to Treasury. Uh. And
also that question of whether these theories will be rail
(07:03):
enabled or not.
Speaker 2 (07:04):
I definitely think they will be, because that's why you
got involved. But anyway, that's me speaking, not you, speaking
of Kiwi Rail. Ports on both sides of the Cooks
straight are a bit worried. They're a bit concerned about
working with Kiwi Rail after what happened was the Mega
Faery project. Explain that one to me.
Speaker 3 (07:20):
Yeah, So I've just been sifting through some proactively released
documents from last week and These documents include reports by
the Ministerial Advisory Group tasks with finding a solution to
replace the aging and trilent aflete And I just thought
it was interesting that in June last year that group,
(07:41):
Chim and Mark Thompson said that the ports, you know,
we're feeling a bit reluctant to work with kiv Rail
after the Mega faery fallout, you know, just noting that
the ports have deferred investment in their infrastructure for coming
close to a decade due to the fact that Kiri
Rail have been working on these mega ferries since twenty fifteen.
(08:02):
And of course you know that project really did heads south,
was considerable budget blowouts. But you know when Ston Peter's
the Minister for Rail, notes that, you know, this was
mid last year and as far as he's concerned, you know,
a spokespersons for him said that he's observed that Kirry
(08:23):
Row and the two ports have shown a great willingness
to work together on a cost effective solution. But you know,
I think it's pretty understandable that there might be some hesitance,
or at least there certainly was some hesitance about working
with Kerry Raw, you know, given the kind of shimmoggl
that was the Mega Fairy Project.
Speaker 2 (08:42):
It's kind of feels a little bit like to me,
we I'm going to use the word weird, that this
is such a big deal and it seems so damn
unorganized and unplanned.
Speaker 3 (08:57):
There is in the very project in general.
Speaker 2 (09:00):
The Fries absolutely, I mean, this is a big deal
for us, and we just don't have a clue, do we.
Speaker 3 (09:05):
Yeah, it's a big deal because it is effectively an
extension of State Highway one, cook Straight. You know, it's
not just fairy passengers going off for a nice holiday
and the sounds. You know, it's also a key supply
link for freight. So yeah, I think you know, as
this drags on, you know, you do start asking those questions, well,
(09:29):
what is the plan? Because the current interland defleete can't
go on for ever and we've seen the big you know,
serious incidents that have happened like Kaientucky losing power and
drifting and Cook Straight. Like, you know, there's a lot
of politics now to the story, isn't there. But you
know the realities of them not making a decision quickly
(09:53):
enough are pretty stark.
Speaker 2 (09:55):
See George, I just just as a side pit, I
saw the little documentary thing on the theory that takes
people from Melbourne to Tasmania. I mean, I know it's
an overnight thing, it's a much bigger deal. But they
just had such a wonderful fairy and it was such
a wonderful experience, great food. I mean, why can't we
just get it right to make it a tourist attraction
(10:17):
that it once was. And it once was a tourist attraction.
Catching the ferry depict in or bat Vice versa was
an experience, So they've just got to bring it back. George,
always a pleasure. That's my little rant for the day
to KII Rail. Make it a cruise, remember cruising on
the End Island. It was so good, George. Thank you
very much. Georgina Campbell's their Issues reporter for The New
(10:41):
Zealand and Wellington's Issues reporter for the New Zealand Herald.
Speaker 1 (10:44):
For more from Wellington Mornings with Nick Mills, listen live
to news Talks It'd Be Wellington from nine am weekdays,
or follow the podcast on iHeartRadio.
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