It's back to the drawing board for KiwiRail on the future of the Interislander as the government axes new upgrades.

Contracts were signed to buy two new mega-ferries and upgrade portside infrastructure, but Finance Minister Nicola Willis says the cost has got too high.

However, Jon Reeves of the Public Transport Users Association told Tim Dower that backtracking on contracts does reputational damage to the country.

He claims this acts as a warning for international companies, that they can't trust New Zealand to honour contracts.

LISTEN ABOVE 

It's back to the drawing board for KiwiRail on the future of the Interislander as the government axes new upgrades.
Contracts were signed to buy two new mega-ferries and upgrade portside infrastructure, but Finance Minister Nicola Willis says the cost has got too high.
However, Jon Reeves of the Public Transport Users Association told Tim Dower that backtracking on contracts does reputational damage to the country.
He claims this acts as a warning for international companies, that they can't trust New Zealand to honour contracts.
LISTEN ABOVE

A fresh and intelligent start to your day - catch the very latest international and domestic news developments, sport, entertainment and business on Early Edition with Ryan Bridge, on Newstalk ZB.

A fresh and intelligent start to your day - catch the very latest international and domestic news developments, sport, entertainment and business on Early Edition with Ryan Bridge, on Newstalk ZB.