Speed check helps sink Top Cat ferry

Cook Strait fast ferry Top Cat will be permanently withdrawn from service on Friday, with its owner blaming the Marlborough Sounds speed bylaw as one factor in its demise.

Fast Cat Ferries chief executive Keith Pybus said yesterday that a major shareholder, Incat Chartering, was owed a "substantial" amount in charter fees.

The company would ask Tranz Rail ferry services for help in honouring bookings paid in advance and would tell passengers with unpaid bookings to rebook with Tranz Rail.

Mr Pybus said Incat had advised that it could no longer pay for the ferry to operate.

Factors influencing the decision to withdraw the service included high fuel costs, the weakness of the dollar, the high level of competition on Cook Strait and the bylaw reducing fast ferry operating speeds in the Sounds.

The development leaves Lynx, due to resume summer service on December 10, as the only fast ferry on the strait run.

Mr Pybus said Fast Cat had been on notice since late last year.

"While Incat have been supportive of Fast Cat Ferries over that time, they do not now see that Fast Cat Ferries can get to a stage where it will be able to catch up arrears and make timely charter payments," he said.

That was due particularly to the bylaw passed by the Marlborough District Council to restrict the speed of fast ferries in the Sounds.

Mr Pybus said a challenge to the bylaw and legal action to recover losses incurred were being considered. "Fast Cat Ferries have consistently stated that the passing of this bylaw was a very serious issue for the continuation of Top Cat and threatened its continued viability."

Top Cat would be withdrawn at noon on Friday. "Fast Cat Ferries will maintain staff to assist in an orderly transition to avoid disruption to the travelling public."

Mr Pybus thanked customers, suppliers, travel agents, employees and the general public for their "tremendous support" over the past 18 months.

The speed restriction bylaw, voted in by the district council on September 12, will cut fast ferry speeds in the Sounds to 18 knots from midnight on December 15, adding 30 minutes each way to the trip.

It is not known how many jobs will be lost by the Top Cat's withdrawal.

Tasmanian company Incat bought into the Top Cat ferry in July last year when Fast Cat Ferries was struggling financially, just two months after it began competing with the Lynx and Interislander.

Cook Strait is choppy waters for ferry companies, and has claimed several rivals to Tranz Rail over the years.

Last Maym, Incat, a shipbuilder, said it was selling out of its ferry stake in a move that was painted then as a vote of confidence in its New Zealand partners keeping it afloat.

Mr Pybus would not specify the size of Incat's shareholding. The majority shareholder is Christchurch businessman Roger Swolf, with Brooke McKenzie, also of Christchurch, a minority shareholder..