Well that was confusing. When Nicola Willis blew up Kiwirail’s plan for new ferries she promised a better plan, and yesterday we got that plan. 

They're going to form a new company to buy some ferries. No news about which ferries and what format they’re in. 

Nothing about what’s happening portside.

There was also an invitation to private industry to come up with a better solution. 

So no new ferries, no new ports, no ships ordered, and no idea that private industry already provides a service, that is Bluebridge. 

It was an announcement of an announcement, which we already lampooned the last government with. 

It was ideological. It was government spending and this government doesn’t like that so they cancelled it without thinking about the long term consequences. 

It was not based on business practice, or financial logic. 

It was not on brand and it’s harming reputationally. 

Put this in business terms, they broke a contract for ships that was a good deal. Okay, maybe you thought they were too big, but it was a bloody good price for what they were - $550 million. But breaking the contract puts a flag above our head, not to mention the break fee.

Now we have a company desperately in the market and the providers of new boats or second hand realise our weakened position.

The government just needs a boat to save their face, and sellers will no longer sharpen their pencils.

Meanwhile portside costs continue to escalate. 

In a government that prides itself in business acumen and ability in mergers and acquisitions they have given themselves a weak hand going forward.

I’ve already said this government knows the price of everything and the value of nothing, but now they’re crippled by analytical paralysis. 

In other words, they don’t know what to do and so they do nothing. And when they do finally do something they’ll find they don’t have a strong position. Meanwhile the bills build up and you and I will have to pay for it with our taxes.