In 2021-22, the public was consulted on a proposal for Council to lend $110 million to Port Marlborough to support ferry infrastructure for new, larger Cook Strait ferries. Council would raise debt through the Local Government Funding Agency at below-market rates and on-lend to Port Marlborough, a Council-owned company. While the public supported this decision to raise debt and loan $110 million to the Port, the Government’s ferry replacement programme did not proceed and the associated work for this loan was not undertaken.
In 2025, the Government established Ferry Holdings Ltd to lead delivery of a revised Cook Strait ferry programme, bringing together vessel design, port infrastructure, and national transport requirements under a single entity. Given the changes to the previous programme, including vessel size and a new ownership model for port infrastructure, Council consulted the Marlborough community again under the Local Government Act. This consultation again asked the community whether Council should raise low-interest debt and on-lend $110 million to Port Marlborough, subject to a financial guarantee and bond. This debt and subsequent loan would be at no cost to ratepayers. The Port would pay back the loan, including interest, through the Port’s operating income.
The public consultation was open from 17 April to 19 May with subsequent public hearings 20-21 May.
A full Council paper is available at the link below, which contains the Council’s wider assessment on the proposed options to the community.
Go to 16 April 2026 - Extraordinary Council Agenda
