Andrew Dickens: The new ferries we know nothing about, but will be paying for

Well that was confusing. When Nicola Willis blew up Kiwirail’s plan for new ferries she promised a better plan, and yesterday we got that plan. 

They're going to form a new company to buy some ferries. No news about which ferries and what format they’re in. 

Nothing about what’s happening portside.

There was also an invitation to private industry to come up with a better solution. 

So no new ferries, no new ports, no ships ordered, and no idea that private industry already provides a service, that is Bluebridge. 

It was an announcement of an announcement, which we already lampooned the last government with. 

It was ideological. It was government spending and this government doesn’t like that so they cancelled it without thinking about the long term consequences. 

It was not based on business practice, or financial logic. 

It was not on brand and it’s harming reputationally. 

Put this in business terms, they broke a contract for ships that was a good deal. Okay, maybe you thought they were too big, but it was a bloody good price for what they were - $550 million. But breaking the contract puts a flag above our head, not to mention the break fee.

Now we have a company desperately in the market and the providers of new boats or second hand realise our weakened position.

The government just needs a boat to save their face, and sellers will no longer sharpen their pencils.

Meanwhile portside costs continue to escalate. 

In a government that prides itself in business acumen and ability in mergers and acquisitions they have given themselves a weak hand going forward.

I’ve already said this government knows the price of everything and the value of nothing, but now they’re crippled by analytical paralysis. 

In other words, they don’t know what to do and so they do nothing. And when they do finally do something they’ll find they don’t have a strong position. Meanwhile the bills build up and you and I will have to pay for it with our taxes.

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Episode Transcript

Speaker 1 (00:00):
Tired of hearing about the fairies. We've been talking about
fairies all week long. In fact, we've been talking about
them for a year. So we're going to be talking
about fairies. The Herald's headline this morning is faery plan.
Light on key details, no kidding, like details on a
boat to wharf in a terminal. Basically that's everything about
about a faery. When Nichola Willis blew up Kiwi Rawl's

(00:22):
plan for new fairies a year ago, she promised a
better plan. Is this a better plan? So they're going
to form a new company to buy some fairies. No
news about which fairies, which fairies, what kind of fairies whatever,
They're going to form a new company. That's two seconds work.
Nothing about what's happening port side. Also an invitation to
private industry to come up with a better solution. So

(00:43):
let's review again. No new fairies, no new ports, no
ships ordered, and seemingly no idea that private industry already
provides a service that is Bluebridge. You're going to say,
maybe a private person could come up with some interest,
why don't you just close down the fairies and give
them all to Bluebridge, Because that's what you just said
Nikolai was Finance Minister Chris Hipkins said, this was an

(01:06):
announcement of an announcement. How rich is that. It's exactly
what we lampooned him for. But is it an announcement
of an announcement. It is rather because you know they've
got to still announce the ferries, the wharves and the terminal.
It was ideological. Don't you think the government came in,
saw government spending and this government doesn't make spending, so
they canceled it without thinking about the long term consequences.

(01:27):
It was an ideological These guys are sounding more and
more like the Labor Party every day when I talk
like this. This was not based on business practice or
financial logic. It's not on brand and it's harming reputationally.
Think about this as a business. They broke a contract
for ships that was a good deal. Breaking contracts not
good puts flag on head. Not to mention the break free,

(01:49):
which some people are saying could be as highest round
of mill. Now we have basically a company owned by
the government desperately in the market, and the providers of
new boats or second hand boats will go to these
guys a week. Aren't they look at their week in possession.
They're desperate for a boat. Let's sit in this piece
of rust. The government just needs a boat to save
their face. Sellers will no longer be sharpening their pencils.

(02:12):
Portside costs continue to escalate. This is a government that
prides itself on business acumen and ability of mergers and acquisitions,
and they've given themselves a weekend. Going forward, they don't
seem to know what to do, and so they're doing nothing.
And when they do do something, they won't have a
strong position for more from Early edition with Ryan Bridge.
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(02:35):
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