KiwiRail is beginning the process of cancelling its contract with an overseas boat builder for two new Interislander ferries.
The Government declined a request for more funding to buy the ferries and upgrade two ports late last year.
KiwiRail is now seeking to terminate the contract.
Finance Minister Nicola Willis says she's doing everything she can to reduce the cost of a canceled contract.
Willis spoke to Corin Dann.
