Settlement reached over New Zealand wreck

The ship ran aground on the Astrolabe Reef on 5 October 2011, spilling containers and hundreds of tonnes of oil into the sea. It has been agreed that the shipping company will pay US$27.6m to settle claims of the Crown and public bodies including the Bay of Plenty District Health Board, the Environmental Protection Agency and the New Zealand Transport Agency.

The settlement also recognises that Daina Shipping Company and the MV Rena’s insurers, The Swedish Club, are in the process of investigating the different options for dealing with the wreckage. If they decide to apply for a resource content to leave part of the wreck in place, an additional payment of US$10.4m will be made to the Crown, reflecting reduced salvage costs. The government stated that the money would go to community projects in the Bay of Plenty.

However, some local groups are less than happy about being left out of negotiations, reported Radio NZ. Ngai Te Rangi chairman Charlie Tawhiao said the government needs to back the demands of local people who want the wreck removed, and others, like Tauranga Moana Iwi Leaders’ Group chairman Te Awanui Black has questioned the principle of agreements reached “behind closed doors”.