The Government has not yet confirmed how it will replace the ageing Interislander fleet, operating between Wellington and Picton crossing Cook Strait but its plan looks to have committed at least $1.7 billion, an economist says.
The Council of Trade Unions’ Craig Renney estimates the coalition Government has already budgeted or spent $1.7b since cancelling the previous replacement project, known as “iRex”, last year.
Of that, $1.16b is due to sunk costs, the cost of winding down iRex, and extra maintenance to keep the ageing Interislander fleet afloat.
