Submissions are now open for the public to comment on whether the Council should raise a loan to finance Port Marlborough’s share of the Waitohi Picton Ferry Precinct Redevelopment.

Over the past decade, the community has fought to keep the Cook Strait ferries in Picton. Port Marlborough has successfully negotiated an agreement that would see the redevelopment of Waitohi Picton ferry precinct and KiwiRail commit to the region for at least 30 years.

“This investment not only makes financial sense for the Council as a shareholder, but also aligns with the Port’s focus on people, planet and prosperity, with benefits realised across the Picton community and wider Marlborough region,” said Mayor John Leggett.

New Interislander ferries have been ordered, due to arrive in 2025, and without this redevelopment the Port would not be able to handle these larger vessels.

“This significant proposal to on-lend $110 million to the Port would not increase rates or cost ratepayers, but rather increase dividends to the Council to over $6 million, offsetting the need for future rates increases. Additionally, this proposal would not increase the cost of debt. After a review in November, the Council retained its AA+ credit rating from S&P, keeping its status as one of the top-rated local authorities in New Zealand, only just below the New Zealand Government’s AAA rating,” Mayor Leggett said.

Under this proposal, the Council would raise debt through its existing arrangements with the New Zealand Local Government Funding Agency (LGFA). The agency specialises in financing the local government sector, to provide lower costs and alternative funding sources for local authorities and council-controlled organisations. If Port Marlborough sought financing through private lending, the Council estimates interest to be 1 percent to 1.5 percent higher, which would take longer to service the loan and lower future dividends to the Council.

“The public has already had a say on the ferry precinct’s new design, including a better connection to the town centre. This consultation on the precinct’s design and community requirements has been led by Port Marlborough and KiwiRail. Now, this consultation today is about whether to finance the Port’s share of the project to achieve these goals,” said Mayor Leggett.

When consulting on the 2021-2031 Long Term Plan earlier this year, the Council signalled that it wasn’t ready to consult on this initiative. Following a rigorous examination by the boards of Port Marlborough NZ Ltd, MDC Holdings Ltd and councillors, the Council now has the confidence to propose moving forward to consult on this $110 million investment.

The redevelopment has also acted as a catalyst for other projects that benefit the community, which are not included in this consultation. The Council is working with Waka Kotahi NZ Transport Agency on proposed roading improvements, including intersection roundabouts, footpath and safety upgrades. Additionally, KiwiRail has agreed to provide a new Dublin Street overbridge and significant funding towards upgrading the Waitohi culverts to improve flood protection in the Waitohi/Dublin Street areas.

The easiest way to make a submission is online at www.marlborough.govt.nz/your-council/have-your-say-consultations before 5pm on 4 February 2022.

For questions about this consultation, email portconsultation@marlborough.govt.nz

More information is also available at: https://www.irex.co.nz/

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