The government has decided against establishing a permanent open ocean tug presence in Cook Strait, saying the costs cannot be justified by the risks the service would address.
The decision ends years of pressure from local government leaders on both sides of the strait. Councils on the North and South Island had long argued that dedicated ocean-going tug capability was essential, pointing to a string of near-miss incidents as evidence.
One of the most serious incidents came in January 2023, when the Interislander ferry Kaitaki lost power while entering Wellington Harbour. The vessel was carrying 854 passengers, and the situation deteriorated to the point where a mayday call was issued.
Earlier in the year, the government had contracted the MMA Vision, an open ocean tug, to operate out of Wellington from April through to June while a longer-term plan was developed. On Tuesday, the government confirmed that contract would be terminated ahead of schedule, finishing in February, with no vessel standing by to replace it.
Transport Minister Chris Bishop said cabinet had examined a detailed business case for open ocean tug coverage in March. The proposal envisaged two vessels working in tandem: one capable of stabilising a stricken boat and a second able to tow it clear. Bishop said the risks specific to Cook Strait did not justify the expense required to address them.
A significant factor was how sharply projected costs had grown between the initial and detailed business cases. What had originally been estimated at around $80 million over 10 years had grown to more than $259 million over the same period. Bishop also noted that the majority of recorded boating incidents across New Zealand occur outside Cook Strait.
"While most of these costs were intended to be paid with the establishment of EORC-specific levies, there would still be significant cost pressures on the Crown to procure an EORC solution, and these levies would be passed onto consumers through higher prices," Bishop said.
"Put bluntly, the cost to taxpayers is too high for something that's unlikely to be needed - and unlikely to be useful even if it is."
Ending the MMA Vision contract early will, according to the minister, save $9 million.
Written by Nick James, RNZ Journalist
