Winston Peters: Rail Minister reiterates previous Cook Strait ferry deal wasn't a good one

As Hyundai is back on the table for a potential Cook Strait ferry deal, Winston Peters is reiterating his view that the previous deal wasn't a good one. 

The Government set aside $300 million to resolve all exit costs for the deal.

Peters says the idea that breaking the previous deal with Hyundai alone will cost $300 million is 'just wrong'. 

"We cannot afford this blowout in costs for both the ferries and the infrastructure that went with the ferries that were ordered. It costs us way less than $300 million."

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Episode Transcript

Speaker 1 (00:00):
Right now, though a few things to run past. Winston
pieces with multiple hats on. New documents out today revealing
the Coalition has set aside reportedly side three hundred million
dollars to cover the broken infrastructure contract with Yondai for
the fairies. Plus add to that, the US has halted
military aid to Ukraine. This is because Trump is trying
to put the squeeze on Zelenski. Winston Peters is the

(00:22):
Minister of Rail also Foreign Affairs minister. Good evening, Good evening,
Great to have you on the program. Now. The three
hundred million dollar so called break fee that has been
spoken about today is a lot of money. Will we
have to spend three hundred million dollars to break the
old contract?

Speaker 2 (00:41):
We've already spent about forty six million. All that in
that context, But let me say to you that we
began in May of twenty one hours a Minister of
the Rail seeking for four hundred point one million two fairies,
and there was going to be some infrastructure costs, but
it would look like way less than one billion. He
came back twenty three out of the previous labor government's

(01:04):
calculations and their deals to face over four billion dollars.
That's the reality here. And so when we talk about
this random minium, it is not for the i REX itself,
it is including the i REX also infrastructure which has
to be adheaded to.

Speaker 1 (01:23):
So shond I won't get three hundred million dollars in
a cancelation fee for the old fiorries. That's that's false.

Speaker 2 (01:31):
Now there's a cancelation the equation. But having talked to them,
we know that these two things are totally separated. The
past decision to stop what was a infery option where
of every dollar you spend on the fory you're spending
three dollars somewhere else. There was a massive blowout. No,

(01:52):
I get that, and that's the real point here. The
opposition doesn' seem to get it, and you get it,
but a lot of media don't get it. I'm emphasize
it one more time.

Speaker 1 (02:02):
Understand that, But how much does it cost? How much
could it cost to cancel for the cancelation fee because
we have not onored our end of the bargain with
the old contract, right, so what is the potential cost
of that.

Speaker 2 (02:17):
Well, the potential cost of saying we cannot afford this
blowout in costs for both the fury and the attended
infrastructure that went with the ferries that they ordered. That
cost is way less than three hundred million.

Speaker 1 (02:32):
Ah okay, is that did you say forty six million
dollars earlier? Is that more like it?

Speaker 2 (02:37):
No? No, the forty six million we would have spent
on another matters associated with that three hundred million cost
of decision which we saw to avoid going to a
contract picked up from the layer of the government, not
what they were structured to do at the beginning, but
where they went from four hundred point one million theories

(02:57):
to what in the end was two and the total
cost all up was a four billion plus according to Treasury.
And every dollar you was spending on new pierries, you
have three dollars somewhere else. So you go from way
less than one billion to four billions. That's the economics
this country when when hear it from the Labor government

(03:18):
in portfolio after portfolio, and that's what the neasypant the
taxpayers because it's their money need to know.

Speaker 1 (03:24):
Minister, what do you make of Trump pulling the military
funding for Ukraine? Jesus playing hardball, isn't he?

Speaker 2 (03:32):
Look it's truly to say and I'm not making any
comments because I've to see the dust settle and see
what it all means.

Speaker 1 (03:40):
Do you think we're closer to a piece deal since
Trump's come in or further away?

Speaker 2 (03:48):
Well, my answer that is we are closer to a
peace deal. The question is what will be shapen form.

Speaker 1 (03:57):
Do you think we can get a lasting one?

Speaker 2 (04:01):
Well, you know, we live in a very difficult world,
probably the most difficult since anybody, nor most people, not anybody,
but anybody that was born after the Second Rewar has
never seen a time quite like this one.

Speaker 1 (04:15):
Have you spoken to your Ukrainian counterpart?

Speaker 2 (04:19):
Yes, I spoken doing Ukrainian counterpart. I've spoken to my
counterpart in Poland and surrounding countries Germany, France and the UK.
Have been speaking to the USA counterpart very shortly. I've
spoken to my counterpart in China getting into national fearful things,

(04:39):
and of course I spoken to my counterpart and then
Ambasta also in Finland.

Speaker 1 (04:46):
What are you going to say to Marca Rubio?

Speaker 2 (04:51):
Now you're far too smart, mister Beach for me. You're
asking me to before I even talk to this very
important person. I tell your listeners, no, they don't understand
that that's a lack of diplomacy. It's impolite and it's
rude in the extreme, and we do not want to
be acting like that.

Speaker 1 (05:10):
Fair Enough, I had to ask. I thought you might
be you.

Speaker 2 (05:13):
Know, you know what? You know what the secret of
diplomacy is, don't you?

Speaker 1 (05:17):
Well, certainly not what Trump's doing in the White House
right now. I wouldn't have thought.

Speaker 2 (05:23):
I was going to share something you. The secret of
diplomacy is telling someone to go to help in such
a way that the House will directions.

Speaker 1 (05:33):
Fine, the Foreign Minister Wiston Peters, thank you very much
for your time, appreciated the Savenings. For more from Hither
Duplessy Alan Drive, listen live to news talks it'd be
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