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

 

Must Sell 20 Petrol Stations: Z Cleared To Buy Caltex Assets

Z Energy is allowed to buy the Caltex and Challenge! petrol station chains but must sell 19 of its retail sites and one truck-stop, the Commerce Commission has ruled in a split decision that acknowledges possible retail price coordination between fuel retailers occurs in some regions. More>>

ALSO:

Huntly: Genesis Extends Life Of Coal-Fuelled Power Station To 2022

Genesis Energy will keep its two coal and gas-fired units at Huntly Power Station operating until 2022, having previously said they'd be closed by 2018, after wringing a high price from other electricity generators who wanted to keep them as back-up. More>>

ALSO:

Dammed If You Do: Ruataniwha Irrigation Scheme Hits Farmer Uptake Targets

Enough Hawke's Bay farmers have signed up for water from the proposed Ruataniwha Water Storage Scheme for it to go ahead as long as a cornerstone institutional capital investor can be found to back it, its regional council promoter announced. More>>

ALSO:

Reserve Bank: OCR Stays At 2.25%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2.25 percent, in a decision traders had said could go either way, while predicting inflation will pick up as the slump in oil prices washes out of the data and capacity pressures start to build in the economy. More>>

ALSO:

Export Values Down: NZ Posts Biggest Annual Trade Deficit In 7 Years

New Zealand has recorded its biggest annual trade deficit since April 2009, reflecting weaker prices of agricultural commodities such as dairy products, beef and lamb, and increased imports of vehicles and machinery. More>>

ALSO:

Currency Events: NZ's New $5 Note Wins International Banknote Award

New Zealand’s new Brighter Money $5 note has been named Banknote of the Year in a prestigious international competition. The $5 note was awarded the IBNS Banknote of the Year title at the International Bank Note Society’s annual meeting. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news