Government Cancels Cook Strait Emergency Ocean Response Vessel Procurement Due to High Costs

The Government has decided against procuring dedicated emergency ocean response capabilities (EORC) for the Cook Strait due to significant cost escalations—from $80 million to over $259 million over 10 years—and limited benefits, as existing vessels have resolved past incidents effectively. New Cook Strait ferries with enhanced safety features will reduce the need for external assistance, and the temporary contract for the MMA Vision tugboat will end in February 2026, saving $9 million. Overall, the Government concludes that the investment in dedicated towing capabilities is not cost-effective and cannot justify passing costs onto taxpayers or users through levies.