Jenna Lynch analysis: What are the options for new Cook Strait crossing now Interislander project has been sunk?

ANALYSIS: What options are the Government looking at now it's declined future funding for the Interislander replacement project?  

Everything is back on the table apart from the massive expensive vessels they were going to build.  

Finance Minister Nicola Willis basically put it to Newshub like, the scuppered plan was the Ferrari option but there's plenty of other cars in the garage.  

For instance, they could build new smaller, cheaper ones that are more like the current size or buy second-hand ferries.  

But either way they're back to square one.  

There is a massive ideological debate to come between the governing parties over whether to make the new ferries rail capable.  

That's partly how the blowout began. New Zealand First wanted rail capable ferries which meant the infrastructure needed to be upgraded too. The port costs were going to be 80 percent of the overall cost.  

Willis isn't ruling out rail capable ferries, but she's not promising them either.   

Cancelling this project in some eyes basically leaves the proposition: is this the end of rail?  

Willis has a mammoth task ahead of her to come up with a proposal that meets both her commitment to better value for money and New Zealand First's determination to advocate for rail.  

Jenna Lynch is Newshub's Political Editor.