Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


MBIE acknowledges OAG findings on proposed Convention Centre

19 February 2013

MBIE acknowledges OAG findings on proposed International Convention Centre

The Ministry of Business, Innovation and Employment (MBIE) accepts the Deputy Auditor-General’s findings that some processes used by the former Ministry of Economic Development (MED) to seek expressions of interest in building an international convention centre did not meet best practice procurement standards.

However, MBIE Chief Executive David Smol welcomed the Deputy Auditor-General’s conclusion that there was no evidence to suggest that the final decision to negotiate with SkyCity was influenced by any inappropriate considerations.

“I also welcome the finding that officials worked in good faith to provide a careful and genuine evaluation of the options, and that issues around the social cost of gambling received adequate attention from officials.”

The Office of the Auditor-General today released its review of the government’s decision to negotiate with SkyCity for a proposed international convention centre, including the processes used by MED – now part of MBIE.

“The Deputy Auditor-General’s report identifies areas where our processes fell short of best practice,” Mr Smol said.

“I accept that, and we will learn from this report to improve our processes as we establish the procurement function within MBIE.”

“Prior to the Deputy Auditor-General undertaking this report, work was already underway to strengthen procurement capabilities and processes across the public sector, including within MBIE.

“Last year Ministers agreed to MBIE’s proposal to establish a team of procurement experts who can advise government agencies on complex commercial projects like the convention centre. This team is now in place and is supporting a number of agencies on procurement activities.”

Mr Smol noted the Deputy Auditor-General’s comment that discussions with SkyCity were unusual because they did not fit easily into any established category of procurement activity and so it was unclear what procedural expectations should apply.

“There is no off-the-shelf process for making such complex decisions,” Mr Smol said.

“The Deputy Auditor-General also points out that, given the nature of the responses it is likely that the SkyCity proposal was always going to be the most attractive from most perspectives.

“As she says in her report, no other submitter appears to have been likely to be able to adapt their proposal to enable them to fund the full construction costs.

“She notes that overall it is obvious that SkyCity’s gambling facilities could give it a unique means of funding the capital costs of a convention centre, which could avoid the need for substantial central government funding.

“She also says that in the course of the inquiry she had not heard any comment to suggest that other proposers did not understand the reasons why the government might prefer the SkyCity proposal.”

ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: RBNZ Keeps OCR At 3.5%, Signals Slower Pace Of Future Hikes

Reserve Bank governor Graeme Wheeler kept the official cash rate at 3.5 percent and signalled he won’t be as aggressive with future rate hikes as previously thought as inflation remains tamer than expected. The kiwi dollar fell to a seven-month low. More>>

ALSO:

Weather: Dry Spells Take Hold In South Island

Many areas in the South Island are tracking towards record dry spells as relatively warm, dry weather that began in mid-August continues... for some South Island places, the current period of fine weather is quite rare. More>>

ALSO:

Scoop Business: Productivity Commission To Look At Housing Land Supply

The Productivity Commission is to expand on its housing affordability report with an investigation into improving land supply and development capacity, particularly in areas with strong population growth. More>>

ALSO:

Forestry: Man Charged After 2013 Death

Levin Police have arrested and charged a man with manslaughter in relation to the death of Lincoln Kidd who was killed during a tree felling operation on 19 December 2013. More>>

ALSO:

Smells Like Justice: Dairy Company Fined Over Odour

Dairy company fined over odour Dairy supply company Open Country Dairy Limited has been convicted and fined more than $35,000 for discharging objectionable odour from its Waharoa factory at the time of last year’s ”spring flush” when milk supply was high. More>>

Scoop Business: Dairy Product Prices Decline To Lowest Since July 2012

Dairy product prices dropped to the lowest level since July 2012 in the latest GlobalDairyTrade auction, led by a slump in rennet casein and butter milk powder. More>>

ALSO:

SOE Results: TVNZ Lifts Annual Profit 25% On Flat Ad Revenue, Quits Igloo

Television New Zealand, the state-owned broadcaster, lifted annual profit 25 percent, ahead of forecast and despite a dip in advertising revenue, while quitting its stake in the pay-TV Igloo joint venture with Sky Network Television. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news