Marlborough District Councillors have voted to move forward to public consultation on whether the Council should finance Port Marlborough’s share of the Waitohi Ferry Redevelopment Project.
Submissions will open for one month from 17 April until 5pm on 19 May. Submitters can also choose to speak at hearings scheduled for 20 and 21 May.
“Our community fought for many years to keep the ferries here, and now Port Marlborough has successfully negotiated a 60-year commercial agreement to cement Picton’s role in the Cook Strait crossing,” said Mayor, Nadine Taylor.
Under Council’s proposal, Port Marlborough would repay a loan of $110 million in full, including interest, as well as expecting to return an annual dividend to Council which would be used to benefit Marlborough’s residents and ratepayers.
“The provision of a financial guarantee and bond to the Port has been agreed as part of the overall package,” the Mayor said.
“We have been here before of course, with public consultation in 2021/2022 to finance Port Marlborough’s contribution towards the previous ferry redevelopment programme. Since then, the Government stopped the previous programme to replace the ageing Interislander fleet and progressed a revised approach, including different vessels and a new ownership model for infrastructure assets at Port Marlborough.”
The consultation proposal is for Council to borrow the same $110 million through the Local Government Funding Agency at a favourable rate, to on-lend to Port Marlborough to pay for its share of the ferry infrastructure.
The Picton redevelopment is estimated at $531 million of the $1.867 billion Cook Strait Ferry Replacement Programme. The public consultation is whether or not the $110 million co-investment required of Port Marlborough will be backed by Council, Mayor Taylor outlined.
She said the Port’s business plan had been through a rigorous governance process.
“The financial principles and risk mitigations have been considered and approved by the boards of Port Marlborough and MDC Holdings, both of which have independent directors. The proposal has also been endorsed by Councillors.”
“I encourage everyone with an interest in the project to read the statement of proposal document carefully, to attend one of the public meetings and to make a submission. Please take the opportunity to have your say.”
A final decision will be made on 26 May at a full Council meeting.
To make a submission, go to https://links.marlborough.govt.nz/haveyoursay using the online form. A hard copy of the submission form can be printed from the Council website, or collected from Council’s Blenheim or Picton offices, or Marlborough District Libraries. All hardcopies must be returned before 5pm on 19 May.
