A top of the south iwi chairperson says the Government’s decision to halt the Cook Strait ferry project is a “heavy blow”.

In 2021, Te Ātiawa o te Waka-a-Māui signed a first of its kind kawenata (agreement) with KiwiRail, recognising their partnership ahead of the new ferry terminal project.

But Finance Minister Nicola Willis announced she had decided against pumping more money into the Inter-Island Resilient Connection (iReX) project which meant it would not proceed.

Te Ātiawa o te Waka-a-Māui Trust chairperson Rachael Hāte said on Friday the iwi was disappointed a more proactive and pragmatic approach had not been taken.

“It also comes as a blow for our entire community and the wider Te Tauihu (top of the south) region, who have for many years welcomed visitors via the critical gateway of Waitohi Picton and Te Moana o Raukawakawa Moana (Cook Strait),” Hāte said.

“Te Ātiawa o te Waka-a-Māui has been working alongside KiwiRail on the Waitohi Ferry Redevelopment (iReX) as part of Te Au o Rehutai, a unified Mana Whenua governance and advisory group, for a number of years.”

She said the “highly complex” project aimed to futureproof the “crucial” Interislander ferry service, which had been neglected by successive governments.

The Aratere passes its sister ferry Kaitaki at the harbour entrance in Wellington. Photo / Marty Melville

“We extend our heartfelt thoughts and concerns for those impacted by the potential loss of related employment and all the associated whānau disruptions this brings, made even more intense at this time of the impending festive season,” she said.

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“I also want to also acknowledge KiwiRail, our Te Au o Rehutai partners, Port Marlborough, and the many individuals and groups who have worked hard on this project over many years.”

She said the rohe (region), its people and the community had navigated through extreme events before, and this was no different.

“We are resilient and will, as we have always done, practice manaakitanga (hospitality) and continue to support our community and the thousands of manuhiri (visitors) who pass through our rohe every year.”

The iReX project would have seen major developments at the ports of Picton and Wellington, as well as the purchase of two new larger and greener ships to carry passengers, trucks, cars and trains. The first ship was set to be launched in January 2025.

In Picton, the iReX project included a new terminal building, a new wharf and passenger walkway, a new rail yard, new vehicle boarding, and a Dublin St bridge over railway lines, to improve traffic flows in the port town when larger ferries came in. The Waitohi Picton ferry precinct redevelopment, as the Picton part of iReX was dubbed, was going to need up to 300 workers.

Kaikōura National MP Stuart Smith said this week he was disappointed the Cook Strait ferry project will not go ahead, but questioned how the project cost got “out of control”.

Originally, when it was announced in 2020, the work was expected to cost under $1b. On Wednesday, Willis said the latest briefing indicated it would cost $3b.

· Public Interest Journalism funded through NZ on Air.