Increased costs close Foveaux ferry service

Press, 21 June 1985, Page 24

Increased costs close Foveaux ferry service

Wellington reporter The Fouveaux Strait ferry Wairua will be withdrawn from service on September 9. The Minister of Transport, Mr Prebble said the previous: National Government had announced that the Wairua would have to stop because of continued losses. A review by the Labour Government had confirmed that it was not economic to continue. The Wairua had cost taxpayers $936,000 in the year to March 31,1985, and in the last 10 years the accumulated loss had been $6 million. This continuing loss would not be sustained indefinitely, Mr Prebble said. Representatives of the Stewart Island County Council, Southland Harbour Board and Southland United Council met the Minister in

Wellington to be told the Cabinet had agreed to the proposal to continue the service until September. The Government will consider “one-off’ help to private operators offering an alternative service, Mr Prebble said. Since the closing announcement the Government had received six serious proposals from potential operators, he said. At least one operator had said it would be interested in running a service without subsidy. Mr Prebble said a sea service was needed for Stewart Island, in particular to cater for cargoes which could not be carried by air. It was the Government’s view that a new shipping service for Stewart Island would almost certainly mean lower charges, he said.