Feedback sought on Picton ferry project funding

Be it Groundhog Day or more generalised déjà vu, Marlborough District Council Chambers echoed with metaphors last Thursday morning as councillors revisited familiar ground.

A unanimous vote advanced a proposal for financing Port Marlborough’s portion of the Waitohi Ferry Redevelopment Project. Terms of a $110 million loan now are out for public review over the next four weeks.

Feedback is due by 19 May, in advance of Council hearing submissions on 20-21 May. The decision date is 26 May.

In an extraordinary meeting, called to follow up approvals from two other agencies, Council took an hour to go over funding parameters.

Warren McNabb, Port Marlborough’s board chair, and Matt Kerr, MDC Holdings board chair, explained the rationale behind their directors’ support. Chief Executive John Boswell, CFO Geoff Blake and General Counsel Setareh Masoud-Ansari did likewise for staff’s recommendation.

Councillor Gerald Hope proffered the motion to approve, then pointed to the collapse of the previous bid to improve facilities by stating, “We cannot afford another sunk ferry project.” He and others referenced iReX (Inter-island Resilient Connection) which Central Government cancelled in 2023.

After the deliberation, with Marlborough Sounds Ward colleague Raylene Innes nodding in agreement, Councillor Barbara Faulls expressed confidence in this iteration of the project.

“I think it’s been a really thorough process that Port Marlborough and the [MDCH] board has gone through, so I am totally in support of going out to consultation,” she told Marlborough Weekly. “I personally think it’s a way better deal than was originally presented in ’21-22.”

What’s different
Since iReX, Central Government changed the programme bringing two new ferries to the Picton-to-Wellington route. It established Ferry Holdings Ltd, which formally partnered with Port Marlborough through an interim development agreement announced 13 April.

Provisions in the pact align with the financing plan. As Rail Minister Winston Peters confirmed following Council’s vote, the project budget totals $531 million, “of which the proposed $110 million from Port Marlborough will pay for assets it owns [with] dividends to be paid to ratepayers.” Ferry Holding will cover the rest.

The minister’s statement concluded: “Supporting this proposal would come at no cost to ratepayers and underpins value in their Port company, but we don’t need to explain commonsense to the good people of Marlborough.”

Marlburians have the submissions period to draw conclusions. Councillors from the Sounds and other wards await the feedback, albeit with their support evident at this juncture.

“I am really interested to move this along,” Barbara said. “It’s been a long time, and we need those ferries, need that infrastructure.”

Log onto haveyoursay.marlborough.govt.nz to submit via the online portal. Visit portmarlborough.co.nz for the proposal and plans.