Coromandel ferry wins another reprieve

The Coromandel-Auckland ferry has won yet another reprieve, with Fullers taking over ferry operator 360 Discovery.

Fullers says it will continue to run the ferry on its reduced Friday-Sunday schedule during winter and is committed to a summer service.

360 Discovery announced in March that it was discontinuing its unprofitable Auckland-to-Coromandel service after Easter.

The move provoked a storm of protest from Coromandel businesses and residents.

Several thousand people signed a petition supporting the ferry and asking for local and central government to give the company a $100,000 annual subsidy for five years.

The company later applied to the New Zealand Transport Agency for a subsidy. Its application was rejected last week.

That announcement coincided with the Commerce Commission giving Fullers permission to buy 360 Discovery's assets, including three vessels.

Fullers chief executive Douglas Hudson said 360 Discovery would continue to operate as a separate company and manager Phil Andrew would continue in his position. All the company's staff had been re-employed.

He said Fullers had a long-standing relationship with 360 Discovery and made the move to ensure continued use of some of the smaller company's vessels.

Mr Hudson said he wasn't surprised by the Transport Agency's decision not to subsidise the ferry as there was no precedent for it to fund inter-regional services.

Fullers would work with 360 Discovery to develop a marketing campaign.

- NZPA