OIA 29663 Information for release REDACTED.pdf

IN-CONFIDENCE
From:
MCLACHLAN, Pip (CAE)
To:
BENNET, Dawn (SEL); GRIFFITH, Richard (NAD)
Cc:
FULLER, Nicolasa (NAD); VERSTEEG, Tessa (NAD); PARK, Jeongmin (SEL); FISHER-MASHOOD, Abby (SEL)
Subject:
RE: Engagement on the iReX project
Date:
Friday, 15 December 2023 7:13:55 am
Attachments:
image001.png
[IN CONFIDENCE]
s6(a)
  Thanks Dawn!
Sent with BlackBerry Work
(www.blackberry.com)
From: BENNET, Dawn (SEL) <[email address]>
Date: Friday, 15 Dec 2023 at 2:04 AM
To: GRIFFITH, Richard (NAD) <[email address]>
Cc: FULLER, Nicolasa (NAD) <[email address]>, MCLACHLAN, Pip (DS AAG)
<[email address]>, VERSTEEG, Tessa (NAD) <[email address]>, PARK,
Jeongmin (SEL) <[email address]>, FISHER-MASHOOD, Abby (SEL)
<[email address]>
Subject: RE: Engagement on the iReX project [SEC=IN CONFIDENCE]
[IN CONFIDENCE]
Hi Richard
A couple of hours after sending you the « no response » readout below, I got the following
text message back from our bilateral DG:
s6(a)
under the Official Information Act 1982
Dawn
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Dawn Bennet (she/her)
대사 |  Ambassador
주한 뉴질랜드 대사관 | New Zealand Embassy Seoul | Te Aka Aorere
M s9(2)(a)
  T s9(2)(a)
  E [email address]
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Date: Thursday, 14 Dec 2023 at 12:49
To: BENNET, Dawn (SEL) <[email address]>
Cc: FULLER, Nicolasa (NAD) <[email address]>, MCLACHLAN, Pip (DS AAG)
<[email address]>, VERSTEEG, Tessa (NAD) <[email address]>, PARK,
Jeongmin (SEL) <[email address]>, FISHER-MASHOOD, Abby (SEL)
<[email address]>
Subject: RE: Engagement on the iReX project [SEC=IN CONFIDENCE]
[IN CONFIDENCE]
Hi Dawn – Thanks again for the message below. Any further reaction from the Korean system
today?
Richard
From: BENNET, Dawn (SEL) <[email address]>
Sent: Wednesday, 13 December 2023 3:35 pm
To: GRIFFITH, Richard (NAD) <[email address]>
Cc: FULLER, Nicolasa (NAD) <Nicolasa.Ful [email address]>; MCLACHLAN, Pip (DS AAG)
<[email address]>; VERSTEEG, Tessa (NAD) <[email address]>; PARK,
Jeongmin (SEL) <[email address]>; FISHER-MASHOOD, Abby (SEL)
<[email address]>
Subject: RE: Engagement on the iReX project
[IN CONFIDENCE]
Thanks Richard
I was not able to reach DG Seo (Asia Pacific Division, MOFA) by phone this morning. s6(a)
I texted her the fol owing message.  s6(a)
Hel o again DG Seo.
under the Official Information Act 1982
As I haven't been able to reach you here is the information I was going to convey (in
confidence):
- You may be aware that Kiwirail, a New Zealand transport company in which the NZ
Government  is  a  shareholder,  has  contracted  Hyundai  Mipo  Dockyard  (현대미포조선)
to build two new ferries for passenger and cargo transport between New Zealand’s north
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and south islands.
- Kiwirail had requested significant additional funding from the government to address
cost escalations in their overal  project to replace the interisland ferries.
- Yesterday the recently elected Coalition government declined that request for
additional funding.
- This is likely to have implications for the scope of the project by Kiwirail.
- What happens next is a matter for the Board of Kiwirail. We wil  keep in touch with you
as decisions are made.
- Note that the government’s decision on funding is in no way a reflection on Hyundai
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From:
FULLER, Nicolasa (NAD)
To:
BENNET, Dawn (SEL)
Cc:
MCLACHLAN, Pip (CAE); GRIFFITH, Richard (NAD); FISHER-MASHOOD, Abby (SEL); PARK, Jeongmin (SEL)
Subject:
FW: Fwd: Info for the Korean Embassy/Ambassador
Date:
Wednesday, 13 December 2023 1:00:00 pm

Hi Dawn
  See latest points from Minister Willis below. Updated Q&A to come.
Nicolasa
Nicolasa Fuller (she/her) | South Korea (ROK) North Asia Division | s9(2)(a)

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From: MCLACHLAN, Pip (DS AAG) <[email address]>
Sent: Wednesday, 13 December 2023 12:48 pm
To: FULLER, Nicolasa (NAD) <[email address]>
Act
Subject: FW: Fwd: Info for the Korean Embassy/Ambassador
  [UNCLASSIFIED]

  Sent with BlackBerry Work
(www.blackberry.com)
Information

From:s9(2)(g)(ii)

Date: Wednesday, 13 Dec 2023 at 12:44 PM
To: GRIFFITH, Richard (NAD) <[email address]>, KEMP, Peter (NAD)
<[email address]>, MCLACHLAN, Pip (DS AAG) <[email address]>
Official
Subject: Fwd: Info for the Korean Embassy/Ambassador
  Riding instructions below.
the
s9(2)(g)(ii)

Senior Foreign Affairs Adviser
Office of Rt Hon Winston Peters
Deputy Prime Minister & Minister of Foreign Affairs
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Phone: s9(2)(a)

From: Paula Oliver <[email address]>
Sent: Wednesday, December 13, 2023 12:30:40 PM
To: s9(2)(g)(ii)

Subject: Info for the Korean Embassy/Ambassador
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Hi s9(2)
( )(ii)
We’re going through final approvals now for our PR and timeline that we’ll be releasing this afternoon. I
can’t yet give you final wording as the Minister has been tied up in the House with the RBNZ Bill.
  However, in order to have MFAT use something for its communications with Korea, we would be happy
to supply the fol owing guidance at this point:

  The coalition Government has declined a KiwiRail request to contribute significant additional funding to

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address cost escalations in the project to replace the InterIslander ferry fleet.
  KiwiRail had requested an additional $726 milion on top of an in-principle decision by the previous
government to provide additional funding to the project to address cost escalations with associated
harbourside infrastructure.
  The Government remains committed to a resilient safe and reliable Cook Strait connection, but the cost of
this project has almost quadrupled since 2018 to approximately $3 billion. It is also now the case that
only 21 per cent of these costs are associated with the core project of replacing ageing ferries.
  The decision is not a reflection on shipbuilder Hyundai Mipo Dockyard which was awarded the contracts
to build two rail-enabled ferries. The bulk of the cost-escalation is related to upgrading harbourside
infrastructure in Wellington and Picton, including to accommodate new ferries about twice the size of the
existing vessels.
1982
  The Minister will be making the point above regarding Hyundai Mipo Dockyard publicly as part of her
Act
communications.
  s9(2)(g)(i)

  Paula
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From:
FULLER, Nicolasa (NAD)
To:
Daniel Madley [TSY]; VERSTEEG, Tessa (NAD); TURNER, Rebecca (NAD); SALMOND, Jeremy (CLU); GEELS,
Deborah (DS AAG); VERHAEGHE, Geetha (CLU); GRIFFITH, Richard (NAD); MCLACHLAN, Pip (CAE);
Siobhan Routledge; Bev Driscol ; Nick Graham; Sarah Carson; Stacey Lulham [TSY]; Yi Nichol  [TSY]; Ann
Webster [TSY]; Bryan McDaniel [TSY]
Cc:
Aaron Gil  [TSY]; Michael Moore [TSY]
Subject:
RE: For response by 9.45am today please - draft Q+A re. Project iReX
Date:
Wednesday, 13 December 2023 2:53:17 pm

[IN CONFIDENCE]
  Kia ora koutou
  Pip McLachlan spoke to Ambassador Kim at 1.50pm today. They spoke for 8 minutes.
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RECORD:
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Pip made the fol owing opening comments:
-  Great to meet on Monday, glad this is not the first time we have spoken.
-  Noted that the cal  was in confidence.
-  The Minister of Finance would make a statement at 3.15pm today.
Ambassador Bennet would be making a similar cal  on her counterpart in
Seoul.
-   The new coalition government has declined a request from KR for funding
for the IReX project – this project includes the purchase of Korean ferries.
Information
-  Cost escalation is related to ports not the ferries.
-  KW would advise HMD today.
-  We remain committed to the NZ – ROK trade and economic r/ship
-   Advising under strict confidence so that it doesn’t come as a surprise and to
underline the importance of the bilat r
Official /ship.
-  Reiterated confidentiality.

the
s6(a)

Pip reiterated the key messages, that is
was a decision not to provide funding. Next steps were with Kiwi rail. s6(a)

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s6(a)

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Separately, I understand Ambassador Bennet in Seoul is going to text the information through to
her counterpart in tandem with the announcement, as a cal  has not been arranged yet.
  Nicolasa
  Nicolasa Fuler (she/her) | South Korea (ROK) North Asia Division | T s9(2)(a)

From: Daniel Madley [TSY] <[email address]>
Sent: Wednesday, 13 December 2023 1:40 pm

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To: FULLER, Nicolasa (NAD) <Nicolasa.Ful [email address]>; VERSTEEG, Tessa (NAD)
<[email address]>;  TURNER, Rebecca (NAD) <[email address]>;
SALMOND, Jeremy (CLU) <[email address]>; GEELS, Deborah (DS AAG)
<[email address]>;  VERHAEGHE,  Geetha  (CLU)
<[email address]>;  GRIFFITH, Richard (NAD) <[email address]>;
MCLACHLAN, Pip (DS AAG) <[email address]>; Siobhan Routledge
<[email address]>;  Bev  Driscol   <B.Driscol @transport.govt.nz>;  Nick  Graham
<[email address]>;  Sarah Carson <[email address]>;  Stacey Lulham
[TSY]  <[email address]>;  Yi Nichol  [TSY] <Yi.Nichol @treasury.govt.nz>;  Ann
Webster [TSY] <[email address]>; Bryan McDaniel [TSY]
<[email address]>
Cc: Aaron Gil  [TSY] <Aaron.Gil @treasury.govt.nz>; Michael Moore [TSY]
<[email address]>
1982
Subject: RE: For response by 9.45am today please - draft Q+A re. Project iReX

Act
Hi al , we have received KiwiRail’s Q+A (drafted as if the Minister were saying them), as below for
your reference:
  s9(2)(g)(i)

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s9(2)(g)(i)


  Regards,
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  Daniel Madley | Senior Analyst – The Treasury
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M: s9(2)(a)

From: Daniel Madley [TSY]
Sent: Wednesday, 13 December 2023 10:03 am
To: FULLER, Nicolasa (NAD) <Nicolasa.Ful [email address]>; VERSTEEG, Tessa (NAD)
<[email address]>; TURNER, Rebecca (NAD) <[email address]>;
SALMOND, Jeremy (CLU) <[email address]>; GEELS, Deborah (DS AAG)
Information
<[email address]>;  VERHAEGHE,  Geetha  (CLU)
<[email address]>; GRIFFITH, Richard (NAD) <[email address]>;
MCLACHLAN, Pip (DS AAG) <[email address]>; Siobhan Routledge
<[email address]>;  Bev Driscol   <B.Driscol @transport.govt.nz>; Nick Graham
<[email address]>; Sarah Carson <[email address]>; Stacey Lulham
Official
[TSY] <[email address]>; Yi Nichol  [TSY] <Yi.Nichol @treasury.govt.nz>; Ann
Webster [TSY] <[email address]>; Bryan McDaniel [TSY]
the
<[email address]>
Cc: Aaron Gil  [TSY] <Aaron.Gil @treasury.govt.nz>; Michael Moore [TSY]
<[email address]>
Subject: RE: For response by 9.45am today please - draft Q+A re. Project iReX
under
  Thank you al for your very constructive feedback at such short notice. We have just provided the
attached document to the Minister of Finance’s office and wil  keep you updated if we hear
anything further.
  Regards,
  Released
Daniel Madley | Senior Analyst – The Treasury
M: s9(2)(a)

From: Daniel Madley [TSY]
Sent: Wednesday, 13 December 2023 8:42 am
To: FULLER, Nicolasa (NAD) <Nicolasa.Ful [email address]>; VERSTEEG, Tessa (NAD)
<[email address]>; TURNER, Rebecca (NAD) <[email address]>;
SALMOND, Jeremy (CLU) <[email address]>; GEELS, Deborah (DS AAG)

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<[email address]>;  VERHAEGHE,  Geetha  (CLU)
<[email address]>; GRIFFITH, Richard (NAD) <[email address]>;
MCLACHLAN, Pip (DS AAG) <[email address]>; Bev Driscol
<B.Driscol @transport.govt.nz>; Richard Cross <[email address]>; Nick Graham
<[email address]>; Sarah Carson <[email address]>; Stacey Lulham
[TSY] <[email address]>; Yi Nichol  [TSY] <Yi.Nichol @treasury.govt.nz>; Ann
Webster [TSY] <[email address]>; Bryan McDaniel [TSY]
<[email address]>
Cc: Chris White [TSY] <[email address]>; Aaron Gil  [TSY]
<Aaron.Gil @treasury.govt.nz>; Michael Moore [TSY] <[email address]>
Subject: For response by 9.45am today please - draft Q+A re. Project iReX
Importance: High

1982
[IN-CONFIDENCE]
  Good morning all,
Act
  The Minister of Finance’s office has requested that we provide them with draft Q+A by 10am this
morning.
  We have drafted the attached. With apologies for the short timeframe, can you please let me
know if you have any comments, suggested changes, or even Q+A that you wish to insert, by way
of making tracked changes in the attached and emailing it back to me by 9.45am today.
Information
  Regards,
  Daniel Madley | Senior Analyst – The Treasury
M: s9(2)(a)

Official

the
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under
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