Tim Dower: Backing out of the Interislander deal was a no-brainer

I think the new Government's actually done at least one thing right this week. 

Backing out of the Interislander funding deal was a no-brainer really, if you have any doubt about that, have a look at the piece on the Herald site under the title ‘How to blow $15b.’ 

That digs into the Auditor-General's report on some of the previous government's insane spending. 

Back when Grant was splashing money about like a drunken sailor, anybody with a half-baked plan to burn up a couple of billion was welcomed with open arms. 

Cost no object, value for money? Doesn't matter. Possible overruns, blowouts if you like, worry about that later. 

Just spend it. 

The main reason these new guys don't want to pour buckets of your cash into the Cook Strait ferries is they don't trust the numbers. 

Much of the money would have gone on terminal upgrades, and Nicola Willis said she reckoned the numbers were undercooked. 

In other words, they think KiwiRail deliberately went in with a low-ball cost in an environment where they knew they could go back for more. 

Look, there's no question the Interislanders are at the end of their useful lives and becoming increasingly unreliable, and maybe there's an argument for some level of public contribution. It is after all, a vital transportation link. 

Some people see Cook Strait as part of State Highway One, and if you take that view then sure, it's public infrastructure. 

And if you think it's right to publicly subsidise rail freight up and down the country, then you have to include crossing the Strait. 

But there's also a private operator, BlueBridge, charging more or less the same to take people and cars. 

Founded by a New Zealander who saw a need, took a risk, invested, and built a profitable business. 

Now look, I'm not saying KiwiRail shouldn't have any state backing, but maybe it needs to try a bit harder making a business case to outside investors. 

During the campaign, National talked about finding new ways to fund infrastructure projects. 

If ever there was a project that could attract private investment, surely this is it. 

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