The Government has paid $144 million to cancel a deal it had with Hyundai to build two new Interislander ferries. That’s on top of $78m already paid to the shipyard.
The sum of KiwiRail’s settlement with the Hyundai Mipo Dockyard was revealed on Friday, through a joint statement from Rail Minister Winston Peters and Finance Minister Nicola Willis.
As part of its iRex project, which Willis cancelled when the Government came to power, KiwiRail had ordered two new rail-enabled ferries.
It had agreed to buy the ships for $551m.
Peters said the $144m settlement was reasonable - and he noted it was less than what Labour had speculated it would cost to break the contract.