Government's hands-off approach to New Zealand shipping industry is flawed

The Government's preferred option of taking a hands-off ‘let the market decide’ approach to our shipping industry is critically flawed says Bevan Woodward, spokesperson for Forum for Sustainable Auckland Transport (FAST).

“There are massive changes looming in the shipping industry, which are most likely to result in rationalization to a few mega-ports in New Zealand or hubbing all freight via Australia.

Given the impact this will have on the type of roading and rail network we need, it’s not good enough for the Government to sit back and simply say ‘let the market decide’.

FAST believes the Government needs to be involved in the management of the shipping industry for the following reasons:

1) How will the Government know where to build new road and rail infrastructure if it is disengaged from planning NZ's future sea freight?

2) If New Zealand's ports are without guidance on the future for NZ shipping, they will go through a wasteful trial and error approach to investing in port infrastructure.

3) The potential for coastal shipping within NZ is significant, especially as our roads face increasing congestion and oil prices are forecast to rise significantly.

By putting blind faith in the market to provide the best outcome for NZ's shipping industry, and the economy as a whole, the Government is showing that it has not learnt from recent market driven disasters, such as the meltdown of the financial markets or the leaky homes debacle.

ENDS

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