Dr Oliver Hartwich: NZ’s ferry farce is proof politicians are out of depth in business

Here is a simple business scenario: You operate ferries across Cook Strait, between New Zealand’s North and South Islands. Your vessels are ageing and need replacement. What do you do?

For a private operator like Bluebridge, owned by Morgan Stanley Infrastructure Partners, the answer is straightforward: make decisions based on business fundamentals. The company runs a profitable service, commanding 56 percent of the vehicle freight market. It secured that market share through sound commercial judgment.

Suze: The MSM Think We’re Stupid

The projected cost blowout of $775m to $3.2b for two interisland ferries.

This Government has its work cut out making decisions and legislative changes to counteract the appalling financial legacy of the previous Labour Government’s loose spending habits, increases in public debt, budget deficits lasting years and poor commercial decision making, without the media running interference for the opposition.