Setback For Coastal Shipping As Fund Scuttled
March 26th, 2009
Just days after announcing a $4.1bn boost in the State Highway construction budget, the Govt has sunk the Domestic Seafreight Development Fund announced by the previous Govt designed to boost the use of coastal shipping. Transport Minister, Steven Joyce, claims axing the $28m allocated to the initiative was done as the Govt is concerned about subsidising “any form of freight transport.”
Modernisation hindered. The decision has upset the coastal shipping sector which was hoping to use the fund to foster expansion and modernisation of the coastal shipping fleet and services. This now looks in doubt at least in the short term. NZ Shipping Federation executive, Sam Buckle, says the sector is frustrated at the decision. “The Minister appears to have interpreted the fund as favouring one mode over another. However, the fund was recognition the transport playing field has been unbalanced for a long time.”
Competition threatened. Buckle says it is important for the economic future of NZ there are three vibrant and competitive transport modes available for movement of freight around NZ. The decision to scrap the fund will make this harder to sustain. The impact of the withdrawal of funding is hard to predict at this stage, says Buckle, although it is likely a number service initiatives proposed by various private sector groups prompted by the fund will not now go ahead, Despite the scrapping of the fund, Buckle says the Federation is hopeful the Govt will be able to help assist the sector’s development in other ways. “The Minister says he still wants to support coastal shipping so we will talk to him and see what he has to offer.”
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