Agriculture Minister David Carter says he expects the perennial problem of shipping connections with the mainland to be raised with him over the next couple of days by farmers on the Chatham Islands.
Agriculture Minister David Carter says he expects the perennial problem of shipping connections with the mainland to be raised with him over the next couple of days by farmers on the Chatham Islands.
"With large numbers of livestock exported, shipping is likely to be high on the agenda along with unique challenges that the islands' sheep and beef farmers face," Mr Carter said today as he left for the islands with Conservation Minister Kate Wilkinson and Rangitata MP Jo Goodhew,
The islands have a lot of farms, but many families make more money out of fishing or ownership of fishing quota than they do out of livestock.
"I spend a lot of time travelling the New Zealand mainland to meet with farmers so I welcome this chance to talk to our most isolated primary producers," Mr Carter said.
"This will be the first time most Chathams farmers have had the chance to chat about issues with a visiting agriculture minister," said Mr Carter, though one of his predecessors, John Falloon, spent time with the farmers about 15 years ago.
Timaru-based Black Robin Shipping and Black Robin Freighters have run regular ships to the Chathams for the past decade -- a trade worth about $10 million a year to South Canterbury -- but the companies were placed into receivership in October. Black Robin Freighters had a deficit of $2.4 million, with assets of only $491,006 and total liabilities of $2.9m.
Chathams Mayor Alfred Preece has said shipping links are vital to the islands and their farmers, and Chathams MP Annette King is reported to have offered to go to the Government to seek a subsidy for the shipping links.
Black Robin's main ship, the Rangitira, is still sailing and the company's receiver, BDO, is trying to sell the shipping businesses as a going concern.
The receiver said the main reason the companies failed was the purchase of a vessel from South America which was estimated to exceed $US3.2 million ($4.17 million), and a loan default.
Black Robin bought the Jaguar in 2008, but it is part way through a survey in Lyttelton to meet marine requirements, and has been caught up in the receivership.
Black Robin's main debt was to troubled financier South Canterbury Finance, which itself went into receivership in August and its investors received a $1.6 billion taxpayer-funded bailout.
The Chathams service was created by Kelvyn Leslie, who has operated Leslie Shipping in Timaru since 1983, and it carried general cargo and fuel to the islands while returning with sheep and cattle for the Temuka stock sales.
A Napier shipping business, 44 South, set up a rival service last year, though it did not make regular calls to Timaru.
