Rena compo offer 'a bribe'

A $10.4 million compensation offer by the owners of the Rena to be paid if the wreck is left on the Astrolab reef is a "bribe" aimed at saving the shipping company money, a claimants' spokesman says.

The comment came after the Government said it had cut a $27.6 million compensation deal with the owners despite it falling up to $20 million short of the taxpayer bill for the grounding.

While the Rena settlement has sparked debate, a suggestion to leave the wreckage on the reef has proved even more controversial.

Daina Shipping Company, the owner of the MV Rena, has agreed to pay the money to the Government and several public bodies in compensation.

The Government would receive an extra $10.4 million if the remaining wreckage was left on the reef, to reflect reduced salvage costs. The Crown has paid about $47 million so far for the Rena salvage and clean-up.

Rena Business Compensation Group spokesman Nevan Lancaster was happy with the Government settlement but outraged by the "$10 million bribe" to leave the wreck on the reef.

"They are going to have to spend a couple of hundred million to remove it."

He questioned why the Government would accept $10 million when removal was going to cost a lot more: "They are basically ripping us off."

Mr Lancaster agreed it would be tough to get rid of the wreck but said leaving it as a dive attraction would not be worth enough to the local economy.

"It's going to be a very difficult exercise to remove it but difficult is not impossible."

Hugo Shanahan, spokesman for Rena's owners and insurers, denied the $10.4 million offer was a bribe. He said no decision had been made about the wreck, and research and studies about the impact was being done.

"That assertion he's making assumes that the outcome is a forgone conclusion, when in fact that is not the case. The owners and insurers will share the outcome of those studies with the wider community before they make that decision," Mr Shanahan said.

Mayor Stuart Crosby would also like the ship removed.

"My first preference is that it should be removed totally. If it's not practicable, and it may not be, then whatever is left there should be made physically and environmentally safe."

He had been assured there would be thorough consultation before resource consent was applied for.

Mr Crosby said he was relieved a settlement had been reached. The amount was reasonable but not fair.

"Fair would be full compensation but clearly that's not possible, so I think the Crown has done a good job."

Forest and Bird Central North Island field officer Al Flemming said the cost of the grounding should be completely covered by the shipping company.

"There's a lot of containers that were lost and they will continue to pollute the environment," he said.

The Rena's owners have also agreed to establish a $27 million compensation fund for those who lost goods when the ship ran aground and intend to set up another $11.5 million fund to offer compensation to Bay of Plenty people and businesses who suffered losses.

Charter fisherman Garth Lelivre said many locals had been affected and deserved compensation. He mentioned communities, such as Motiti Island, who gave up their time to clean up the shores.

Tauranga MP and Associate Transport Minister Simon Bridges said: "Locals have been waiting to learn about the compensation and so to an extent its announcement will continue to help people move on from this tragedy."

Transport Minister Gerry Brownlee said the compensation package was the best possible outcome.

Konstantinos Zacharatos, on behalf of Daina, said: "This settlement is a vital step forward in our progressive resolution of all the issues."

Maritime New Zealand media advisor Michael Flyger confirmed the settlement would not affect the Crown's prosecution of Daina Shipping under the Resource Management Act.

The company has been charged with discharging harmful substances from a ship into the coastal marine area and the case is due back in the Tauranga District Court on October 26.