How much Cook Strait ferry ministerial advisory group members are earning

Members of the ministerial advisory group (MAG) looking into the future of KiwiRail’s Cook Strait ferry service have been paid more than $80,000 between them since being appointed just two months ago, the Herald can reveal.

Treasury has confirmed that Nelson Airport chief executive Mark Thompson, who chairs the group, has been paid $37,200. Group members Mark Cairns and Roger Sowry have received $29,000 and $17,000 respectively.

The difference in pay reflected the time spent in MAG meetings and other work, Treasury said. The daily rate is $2500 for Thompson and $2000 for each member.

The MAG was announced after the Government refused to give KiwiRail more money for its mega ferry project - leaving the plan to replace the ageing Interislander fleet dead in the water. Overall costs, including new terminals and wharf upgrades, had ballooned to almost $3 billion.

KiwiRail is now negotiating the exit from a fixed-price $551 million contract signed with Hyundai Mipo Dockyard in 2021.

Minister for State Owned Enterprises Paul Goldsmith said ministers have received weekly updates from the MAG since February 28, unless the chairman has been unavailable.

“The Ministerial Advisory Group reports on specific and unique matters as its work progresses, and reflects the importance of timely information.”

Asked whether this was a good use of taxpayer money, Goldsmith said: “It’s critical the Government receives independent expert advice on how we can ensure there are robust plans in place to support safe, resilient and reliable ferry services into the future.”

Green Party transport spokeswoman Julie Anne Genter said the situation demonstrated inconsistency between when the National Party was in Opposition and now in government.

“They constantly criticised the previous Government and denigrated the idea of working groups or review groups - but once in government they employ their own ‘expert’ groups usually at much higher rates of pay.”

Genter said cancelling the ferry contract would likely cost New Zealand more in the long run and risk significant disruption to an essential transport service.

“Then while public servants are facing potential job losses, just a few weeks of advice from this review group could have paid one or two full-time people for a year.”

Green Party transport spokeswoman Julie Anne Genter said cancelling the ferry contract would likely cost New Zealand more in the long run. Photo / Mark Mitchell

The terms of reference for the group said: “The MAG will continue to carry out and report the results of its assurance and advisory work until such time as ministers are satisfied that KiwiRail will continue to provide safe, reliable ferry service on Cook Strait, or alternative options have been developed.”

This is expected to be until at least June.

Who are the ministerial advisory group members?

Goldsmith announced on February 15 that the advisory group was in place.

He said Thompson has a 30-year career in logistics and transport operations with senior executive roles in Australasia, the United States, China and the Philippines, leading public and private service-focused organisations.

Cairns also brought extensive logistics and transport experience. He is currently a director of Freightways and Auckland International Airport, Goldmsith said.

“He also has experience in infrastructure, construction, contracting and capital markets that will be valuable for the advisory group.”

Sowry is a professional director with considerable governance expertise, Goldsmith said.

“His current and previous director roles span companies in several sectors including technology, health, infrastructure and energy. He is also a former Member of Parliament and Cabinet Minister.”

Labour Party transport spokesman Tangi Utikere said a long-term solution for the Cook Strait ferries was needed to improve safety and resilience.

“Instead of finding a solution the National Party has set up an expensive taxpayer-funded group where a former National Party Deputy Leader is getting paid what seems a very high daily rate when compared to Cabinet Office guidance.

“Nicola Willis has her priorities all wrong to give tax cuts to wealthy landlords and jobs to her mates, all at the expense of essential public services and the New Zealand taxpayer.”

MFAT warned of risk to relationship with Korea

The Herald revealed this week that Ministry of Foreign Affairs and Trade (MFAT) officials advised the Government on the risk to New Zealand’s relationship with Korea if the contract to build the ferries was cancelled.

In documents obtained by the Herald under the Official Information Act (OIA), MFAT advised that “careful and deliberate communications with the Korean Government would be required in advance of any public announcement” if Cabinet decided not to give KiwiRail more money for its project to replace the Interislander fleet.

MFAT provided advice on the implications of exiting the contract in a document that was heavily redacted “to avoid prejudicing the security or defence of New Zealand or the international relations of the New Zealand Government”, among other reasons.

Georgina Campbell is a Wellington-based reporter who has a particular interest in local government, transport, and seismic issues. She joined the Herald in 2019 after working as a broadcast journalist.