13:02:32 Sunday 13 April 2025

Rena bill hits $130million

The total cost of the Rena disaster has hit $130million with taxpayers footing almost a quarter of that bill.

Environment Minister Nick Smith says information provided to him by officials shows a crude estimate of the cost of the Rena incident is currently $130 million.


The Rena wreck on Astrolabe Reef on February 3. Photo: LOC.

He emphasises this is an estimate and the full cost of the Rena disaster will not be known until the operation is completed.

'The crude estimate since the Rena hit the reef is $130 million.”

The 47,230 tonne cargo ship Rena hit Astrolabe Reef on October 5, spilling more than 350 tonnes of oil onto Bay of Plenty beaches – an environmental disaster.

Of the $130 million, a total of $28million has been paid for by the government.

Nick says a majority of the costs of the Rena disaster have gone into the salvage of the ship, including the removal of oil, containers and general operation of the ship's cargo.

All of these costs have been met by the ship's owner – Greek shipping company Costamare.

'The owners have met all the direct costs for the salvage operation.”

This includes payment to salvage company Svitzer and environmental specialist company Braemar Howells, responsible for the removal and processing of damaged containers.

Nick says the last estimated government cost was $14million.

This was from the start of November and it has now risen to $28million.

The $28million spent by the government and its public agencies, including Maritime New Zealand, has paid for the environmental clean-up, wildlife recovery, defence personnel and other government resources.

Another $2m-3m has been set aside for the long term environmental recovery plan, officially launched at the Waikari Marae in Matapihi on January 26.

This is an extensive plan to restore the Bay of Plenty environment to the state it was in before the Rena grounded. The first review of this is due in September, 2012.

Nick says the government is still discussing the details of recovering their costs with the ship's owners and insurers, but says negotiations are sensitive and any discussion on the topic could impact the outcome.

'It is the government's intention to recover its direct costs from the ship's insurers.”

In regards to the ability to prosecute the ship's owners under the Resource Management Act, Nick says this is not a question for central government but up to the Bay of Plenty Regional Council.

6 comments

My guess it's gone to bureaucracy

Posted on 08-02-2012 11:54 | By Gee Really

I wouldn't be surprised if a big chunk of the govt $28 million has gone into the bureaucracy that accompanied the disaster. Wonder who paid for the big overblown disaster headquarters with its security guards and people wandering about in high visibility jackets??? Wonder who paid for the high-priced accommodation, meals and travel back and forth for all those officials???


It not the bureaucracy

Posted on 08-02-2012 13:04 | By scottmss

You only have to look at the amount of expensive equipment sitting around on contract and not being used to see the cash disappearing.


Overit

Posted on 08-02-2012 14:31 | By overit

It is shameful the NZ taxpayer is having to pay for anything.Somebody is making a lot of money out of this debacle.


Posted on 08-02-2012 14:49 | By traceybjammet

everybody is it least just worried about the money now. Not that we mihght lose our beaches etc, which is so far touch-wood seeming to be handled well and once again thankyou to all the hours the hard-working volunteers put in


were lucky

Posted on 08-02-2012 16:07 | By traceybjammet

touch wood at least we have had restricted damage and so far better than expected results on the beach, my thanks goes out to the volunteers that got out there and did the hard slog nothing is free in this life we live lets see the good side for once please and thank our lucky stars that its only cost money not lives and our beaches,bays and water


APPALLING REVELATIONS

Posted on 08-02-2012 19:55 | By Hebegeebies

NZ Govt has no idea about the salvage cost.$130m is ridculous and as usual everyone involved is troughing out on a disaster like jackels picking over the carcase.


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