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.”


© Scoop Media

Business Headlines | Sci-Tech Headlines


Solid Energy: Plan To Shut Unprofitable Huntly East Mine

Solid Energy, the state-owned coal miner in voluntary administration, plans to shut down its unprofitable Huntly East mine and lay off 65 staff after deciding the site stands "no chance whatsoever" of finding a buyer. More>>


E Tū: Merger Creates NZ's Biggest Private Sector Union

E tū has been created by the merger of the Engineering, Printing and Manufacturing Union and Service and Food Workers’ Union. It represents more than 50,000 working New Zealanders in industries as diverse as aviation, construction, journalism, food manufacturing, mining and cleaning. More>>


Internet: NZ Govt Lifts Target Speeds For Rural Broadband

The government has lifted its expectations on faster broadband speeds for rural New Zealand as it targets increased spending on research and development in the country's information and communications technology sector, which it sees as a key driver for export growth. More>>


Banks: Westpac Keeps Core Government Transactions Contract

The local arm of Westpac Banking Corp has kept its contract with the New Zealand government to provide core transactions, but will have to share peripheral services with its rivals. More>>


Science Investment Plan: Universities Welcome Statement

Universities New Zealand has welcomed the National Statement of Science Investment released by the Government today... this is a critical document as it sets out the Government’s ten-year strategic direction that will guide future investment in New Zealand’s science system. More>>


Scouring: Cavalier Merger Would Extract 'Monopoly Rents' - Godfrey Hirst

A merger of Cavalier Wool Holdings and New Zealand Wool Services International's two wool scouring operations would create a monopoly, says carpet maker Godfrey Hirst. The Commerce Commission on Friday released its second draft determination on the merger, maintaining its view that the public benefits would outweigh the loss of competition. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news