Government Rules Out Dedicated Cook Strait Emergency Response Capability

The Government has chosen not to move forward with procuring dedicated ocean response capabilities for the Cook Strait, citing sharply increased costs and limited demonstrated benefit. Transport Minister Chris Bishop confirmed the decision following recent assessments.

In Budget 2024, the Government allocated $600,000 to Maritime NZ to prepare a business case for emergency ocean response capability focused on the Cook Strait. Cabinet reviewed an Indicative Business Case in November 2024 and a Detailed Business Case in March 2025. The proposal recommended securing two emergency ocean response vessels through retainer-style contracts. One vessel would have been based in the Cook Strait to stabilise a vessel in distress, while a second larger vessel would tow it to safety as part of a two-strike approach.

The business case identified 23 incidents over the past five years where immediate access to emergency ocean response capability might have assisted the response. However, all incidents were ultimately managed using existing resources and available vessels.

According to the Minister, the level of risk in the Cook Strait is low and does not support investment in a dedicated capability. The assessment found that benefits would apply only in the most severe situations and only if a response vessel were located close enough to reach an incident quickly. Many incidents recorded in recent years occurred outside the Cook Strait, highlighting this limitation. The capability would also require highly capable vessels able to intervene before a situation escalated to grounding or similar outcomes.

Cost escalation also contributed to the decision. Estimated costs for the two-strike solution increased from about $80 million over 10 years at the 2024 indicative stage to more than $259 million over 10 years in the 2025 detailed assessment. While the plan proposed using EORC-specific levies to cover most costs, the approach would still place financial pressure on the Crown and lead to higher prices for consumers.

The Minister noted that the financial burden on taxpayers would be high for a capability with limited likelihood of being required or effective.

The Government is proceeding with two new Cook Strait ferries scheduled to enter service in 2029. These vessels will include enhanced safety features such as improved power and propulsion, navigation, communications, fire safety, watertight controls, and critical monitoring systems. These additions are expected to strengthen the vessels’ ability to reach port without external assistance, further reducing the need for dedicated emergency response capability.

The Government also confirmed it will end the contract for the MMA Vision, the ocean-going tugboat that has been operating part-time in the Cook Strait. The vessel was intended as a temporary arrangement until a long-term plan was established. With Cabinet deciding against introducing a permanent solution, continuing the existing agreement is no longer commercially feasible. The contract will conclude in February 2026, resulting in savings of about $9 million.

The Minister said that although incidents and mechanical issues cannot be entirely prevented, emergency offshore response is only one element of maritime safety. The investment required for towing capability is not considered cost-effective, and the Government cannot justify procuring the service or passing associated costs to users through new levies.