Willis NicolaMINISTERIAL STATEMENTSKiwiRail—Interislander Ferry Fleet FundingHon NICOLA WILLIS (Minister of Finance): I wish to make a ministerial statement. Yesterday I announced that the coalition Government has declined a request from KiwiRail to contribute significant additional funding to address cost escalations in the project to replace the Interislander ferry fleet. This was a very difficult decision for the incoming Government to have to make and the last thing we wanted to have to do. This is a matter that was first brought to our attention during the post-election caretaker period. At the time we were asked to authorise a draw-down of contingency funds to keep the project going. When we asked questions about the project massive cost blowouts were revealed and there were significant questions about the deliverability of the project. On taking office a briefing from KiwiRail revealed a further cost blowout and a request for additional funding. It is important for the House to hear the scale of this blowout because this is a project that under the previous Government's watch not only became far more expensive than was originally projected but also veered far away from its core purpose. We were advised that the project to replace the Interislander ferries had almost quadrupled in cost since it began to now reach a staggering figure of approximately $3 billion and only 21 percent of those costs relate to the core project of replacing ageing ferries. At the same time as KiwiRail was asking for the additional funding to be provided urgently officials were advising us that putting more money into the project would make it harder to withdraw. KiwiRail advised that there were no options it would recommend to reduce the scale of the project while Treasury and the Ministry of Transport advised us not to agree to the funding request. Let me be clear: this Government—our coalition Government—is committed to having a resilient safe and reliable Cook Strait ferry service but that cannot mean that we have an open chequebook to provide whatever is asked in whatever circumstances that might arise. It would be irresponsible for us to continue funding a project that has diverted so far in scope and cost from the original proposal. We have a responsibility to ensure the public gets value for its money and that is why the coalition Government has declined a request from KiwiRail to contribute additional funding to this project. Members will have seen that KiwiRail is now looking to wind down the project and will work with the Government including my colleague the Minister for State Owned Enterprises Paul Goldsmith to look at alternative options. I want to acknowledge that a lot of people have put a lot of time into this project and they will be disappointed by this news. I thank them for their work and I want to assure them that the coalition Government is committed to a resilient safe and reliable Cook Strait ferry service and from here we will be working with KiwiRail and with officials on alternative options for ensuring that connection. We will be looking at a full suite of options and drawing on expertise from a wide range of experts. We will be looking to learn lessons from what has happened here and ensuring it cannot happen again. One thing is for sure: we will not be repeating the cavalier approach taken by the former Labour Government towards spending taxpayers' money. We have been advised that the outgoing Government knew in February 2023 that the cost had blown out to $2.6 billion but that was never made public—Hon Grant Robertson: So that's what we use ministerial statements for now?SPEAKER: Just hold on.Hon NICOLA WILLIS: —and we all saw yesterday the Controller and Auditor-General's report into the previous Government's investment in infrastructure. It highlighted how—SPEAKER: Yeah just keep the ministerial statement to the Government decisions.Hon NICOLA WILLIS: Yep. It highlighted the need for Ministers to be careful with taxpayers' money.The coalition Government will be different from the last lot. We will be disciplined and we will tidy up the mess that has been left behind by Labour. We will give taxpayers' money the respect it deserves.