The Rena disaster cost New Zealand government departments $46.8million, according to figures released from the Treasury, well past the $27.6million the ships owners and insurers have paid in compensation.
The breakdown of costs to government agencies, published by the Treasury on Wednesday, shows Maritime New Zealand paid the most from the MV Rena's grounding and subsequent oil spill.
The Rena on Astrolabe Reef.
Maritime NZ spent $36.8million dealing with the ship's grounding on Astrolabe Reef on October 5, 2011 and subsequent aftermath.
In Tauranga MNZ leased the former Foodtown supermarket on Cameron Road, which became the headquarters of the response effort. At its height it employed about 600 to 800 people.
The second highest cost of $7.2 million was met by the New Zealand Defence Force, which deployed hundreds of army personnel to help clean the beaches as well as four navy vessels and a Seasprite helicopter.
Other big spenders were the Department of Conservation, $907,000; the Ministry for the Environment, $803,000; and $490,000 from the Ministry of Transport.
Treasury figures show the Department of the Prime Minister and Cabinet spent $3000 on the Rena, and the State Services Commission $1000.
Following the Rena grounding MNZ proposed to raise an oil pollution levy on operators to increase the fund's annual base revenue from just over $3million to $4.5million, while a further $3million would be drawn over three years to buy more response equipment and make improvements.
The levy-funded Oil Pollution Fund held about $12 million a decade ago, but had fallen to $4million before the Rena spilled 350 tonnes of heavy fuel oil into the ocean.
Rena salvage operations have cost the owners and insurers more than $275million so far.
Even if the Rena owners and insurers pay the further $10.6million they've promised if the remainder of the wreck is allowed to remain on the reef, the taxpayer will still be $8.8 million out of pocket.
The costs
Maritime New Zealand $36,834,000
New Zealand Defence Force $7,296,000
Department of Conservation $907,000
Ministry for the Environment $803,000
Ministry of Transport $490,000
Ministry of Social Development $192,000
Ministry for Primary Industries $128,000
New Zealand Police $110,000
New Zealand Transport Agency $31,000
New Zealand Customs Service $27,000
Te Puni Kokiri $22,000
Environmental Protection Authority $18,000
Inland Revenue Department $12,000
Ministry of Foreign Affairs and Trade $9000
Ministry of Business, Innovation and Employment $8000
Department of the Prime Minister and Cabinet $3000
State Services Commission $1000
TOTAL $46,891,000
12 comments
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Posted on 26-04-2013 09:08 | By charob
? wht happened to the companies insurance
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Posted on 26-04-2013 09:40 | By avon
Government has received back the $27.6m from the owners, with another $10.6m possibly to come - so the net cost to NZ taxpayers at present is $19.3m (not the gross $46.09m figure). It has still been an incredibly expensive exercise, but the great thing has been the rallying of our volunteers. The Bay of Plenty really got in behind the recovery process, which was superb... well done the Bay!
Total costs
Posted on 26-04-2013 11:01 | By TERMITE
Reflect a government agency having a spend up, typical result of blown out costs, many a story of the lap of luxury for the pengiun rehab, not for pengiuns but the staffing and the extras like parties full on catering and some, the poor old taxpayer getting slug every which way.
Ratepayers
Posted on 26-04-2013 11:13 | By Justintime
This is how much it cost taxpayers. But does anyone know how much it cost local ratepayers on top of the above?
Another maori con job
Posted on 26-04-2013 11:30 | By Captain Sensible
Te Puni Kokiri - (The Government's principal adviser on the Crown's relationship with iwi, hapu and maori, and on key Government policies as they affect Maori). Why was there any need for this???
Swedish Club sucks
Posted on 26-04-2013 12:54 | By captainbirdseye
Not only have the Swedish Club, the insurers of the Rena stuck their fingers up at all the local businesses that suffered during the Rena Fiasco, we now find they have again done the same to the NZ Taxpayer. We did not want your wreck and associated junk in our beautiful Bay of Plenty, so stop bull***** New Zealand and face up to your commitments and ensure it is you that bear all of the costs involved, not us!! The government should ban any vessel from NZ waters that are insured by Swedish Club until they are made to pay in full for their mess!
we got through
Posted on 26-04-2013 16:24 | By traceybjammet
the fixation on money is so irrelevant we made it through with thousands of volunteers and community spirit we saved the beaches, we saved most of the animals its done now people move on and lets get tougher on shipping companies that use our waters for future issues. we waste more money on dumb decisions every week than we did on fixing this accident.
Shipping lanes
Posted on 26-04-2013 16:40 | By tuiruru
This country is a joke as far as setting and being able to extract punitive penalties is concerned. That is bad enough, but then I learnt that there are no formalized shipping lanes! Tauranga is becoming increasingly busy as a port, so when are they going to sort that out? To mix the metaphors a bit, it's another train wreck waiting to happen!
@ tuiruru
Posted on 27-04-2013 07:10 | By Captain Sensible
You know nothing about shipping. Lanes are not necessary in NZ because we do not have the traffic to warrant them. The Japanese coast, Malacca Straits etc have lanes because they are necessary...yet still they have accidents. And if lanes were so ideal, remember we have "lanes" on our roads separated by a white line down the middle. Has that stopped the road toll?
Make them pay
Posted on 27-04-2013 10:36 | By YadaYada
Make them remove the Rena totally which cost a fortune. Then the rest of the shipping companies will take note and make sure they don't suffer the same consequences when in NZ waters.
Cost to ratepayers
Posted on 27-04-2013 14:12 | By Logic
No cost to local rate payers, financially anyway. The $300m salvage costs so far are being paid by the ships insurer. NZ law is too loose, only legal amount required to pay in response to something like Rena is $11m...
Remove the Rena?
Posted on 27-04-2013 18:55 | By PLONKER
Better to leave it there, I see the removal as just being a costly waste of time that just make room for the next one, leave it there to remind them all why it happened ... someone "cut the corner" and we all paid.
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