The state of New Zealand's transport is becoming embarrassing according to a public transit advocate. 

The business case for two new Interislander ferries suggests maintenance costs for the current fleet will continue to rise and could soon reach $65 million a year. 

Plans for new ships were called off by the Government due to ballooning costs. 

Public Transport Users' Association National Coordinator Jon Reeves told Mike Hosking that he hopes it can be re-negotiated. 

He says a $100 million penalty fee would still be worth it to start building ships. 

LISTEN ABOVE 

• "Not really a good look": Further concerns raised regarding the Interislander ferries