John MacDonald: Ferry privatisation would just be excusing KiwiRail's shortcomings

I don’t like this idea David Seymour’s pushing of privatising the Interislander ferry service and getting a private operator to run it, instead of KiwiRail.  

And if I was to sum up why I’m opposed to it as succinctly as I could, it would come down to just two words and one number. State Highway 1.  

Tell that to the ACT leader and Deputy Prime Minister, though.   

He’s saying the Government doesn't need to own the ferries and that it would make sense for the Government to get its money out of the ferry business and use it to pay off debt or build things like roads.   

He reckons that history shows that governments are the worst at running businesses, and reckons private operators would do a much better job of owning and operating the ferries.  

But I think that would be too much of a gamble when you consider that Cook Strait isn’t just a stretch of water, it’s actually part of State Highway 1. And I wouldn’t be happy having two private operators being responsible for getting us across that stretch of it.   

Because with private operators, they’re only in it if there’s a buck to be made.  

Which I don’t have a problem with, but we already have one private operator running services on Cook Strait – would you really want to see that become two private operators?  

Two private operators who would have every right to pull the pin if they decided it wasn’t worth their while continuing?  

Or what if one of them went under? Would you really be happy with one private operator having a monopoly on Cook Strait?  

Besides which, this talk of privatising the Interislander is just letting KiwiRail off the hook. You ask people in the street, and most will probably tell you that the Interislander service is pretty unreliable.  

That may or may not be 100 percent true, but I’m certainly not going to say KiwiRail is doing a brilliant job with the ferries. 

However, instead of talking about selling off the ferries and giving the job to someone else, the Government should be telling KiwiRail to pull its socks up instead. Because the service it provides between Picton and Wellington is an essential service that needs to stay in the Government’s hands.  

I wouldn’t even be up for partial privatisation like Air New Zealand, for example.   

Someone I was talking to was saying that they thought Air New Zealand was a great advertisement for partial privatisation.  

Saying that even though quite a few people have a beef with the airline in terms of its fares and where it does and doesn’t fly to, you can’t argue that the airline is a very well-run business.  

But that still isn’t enough to convince me that it would be a good idea for the Government to wash its hands of the Interislander ferry service.    

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Episode Transcript

Speaker 1 (00:06):
You're listening to the Canterbury Mornings podcast with John McDonald
from newstalk Z'B.

Speaker 2 (00:13):
Let's not beat around the bush. I don't like this
idea that David Seymour was pushing of privatizing the Inter
Island Ferry Service, this idea of getting a private operator
to run it instead of key Erail. Don't like it.
And if I was to sum up why I'm opposed,
if I could do it as succinctly as I could,

(00:36):
it would come down to just two words and one number,
State Highway one. Tell that to the act Leader and
the Deputy Prime Minister. Though David Seymour saying today that
the government doesn't need to own the fairies, and that
would make sense for the government to get its money
out of the ferry business and use it to pay

(00:57):
off debt or to build things like roads, he reckons.
History is littered with examples would show that governments are
the worst outfits at running businesses, and he reckons. Private
operators would do a much better job of owning and
operating the ferries For me, though, that would be too

(01:18):
much of a gamble, way too much when you consider
that Cookstrait. It's not just any old stretch of water.
It's actually part of State Highway one. And I would
not be happy having two private operators being responsible for
getting us across that stretch of State Highway one, getting

(01:39):
a freight across that stretch of State Highway one, because
with private operators, and look, I've got no qualms of others.
With private operators, they're only in it if there's a
buck to be made. Ay, I've got no problem with that.
But we already have one private operator running services on Cockstraight.
Would you really want to see that become two private operators?

(02:01):
Think about it, two private operators who would have every
right to pull the pin if they decided it wasn't
worth their while continuing, or what if one of them
went under? Would you really be happy then with one
private operator having a monopoly on Corkstraight. I wouldn't. Besides which,

(02:21):
this talk of privatizing the intro Island, and that's just
letting key we rail off the hook. You know, if
you ask most people in the street, you've got you've
got sunshine today, and ask most people on the street
and they'll probably tell you that the Intro Island of
service is pretty pretty rubbish unreliable second rate. I mean
that may or may not be one hundred percent true,
but I'm certainly not going to sit here today and

(02:43):
say Kee Wei Rail is doing a brilliant job with
the fairies, because they're clearly not. But instead of talking
about selling off the fairies and giving the job to
someone else, the government should be telling Key We Rail
to pull it socks up instead. Why Because the service
it provides between Picton and Wellington is an essential service
that has to stay in the government's hands. It's, in

(03:06):
a sense services links the north and the South, and
it's the government's job to make sure that link. It's
a government's responsibility to make sure that the state highway
that runs from the bottom to the top of the
country is seamless. And that wouldn't be guaranteed, couldn't be
guaranteed if private operators took over the service, the ferry service,

(03:29):
I wouldn't be I wouldn't even be up for partial
privatization like Air New Zealand. For example. Someone I was
talking to earlier was saying they thought, oh, in New
Zealand's a great, great advertisement for partial privatization. They were saying,
you know, even though quite a few people have a
beef with their New Zealand in terms of its what's
fairs and where it does and doesn't fly to This

(03:49):
person was saying, you can't argue that the airline is
a very well run business partially privatized yep, yep, and
that still isn't enough to convince me that it would
be a good idea for the government to rid itself
of responsibility for the ferries. Opposition isn't keen either, probably knows.
The Labour's transport spokesman Tunny Utakedre is saying, quote, selling

(04:11):
off state owned assets never goes well for national governments
and that is exactly what we're seeing here. And he's
not letting Rail Minister Winston Peters off the hook either, saying,
quote Winston Peters is complicit in this, which goes against
everything he has said in the past. Privatizing theories should
not be an option for the government, he says, but

(04:31):
they're doing it anyway, which I think is if I
think that might be a part of an exaggeration. But
David Seymour wants it, He's pushing for it.

Speaker 1 (04:40):
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