Parliament

Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search

 

Corrections pays $2m for budget blowout

Simon Power National Party Law & Order Spokesman

20 April 2006

Corrections pays $2m for budget blowout

The Corrections Department has paid a former employee $2 million - and rising - to oversee a $490 million blowout in the prisons construction budget, says National's Law & Order spokesman, Simon Power.

He has released answers to parliamentary questions which show that Jagcon, a company owned by former Corrections employee John Hamilton, is being paid $1,764 plus gst a day to manage the Regional Prisons Development Project.

"There is something very wrong when someone who is overseeing a massive budget blowout is paid more rather than less to continue overseeing a project that is a botch-up.

"What was going so well in the prisons construction mess that John Hamilton's daily rate was able to increase from $1,000 plus gst a day in 2000, to $1,764 from July 2004 through till April next year?

"And that doesn't include travel and accommodation, which Corrections pays directly to suppliers, but for which it cannot give amounts.

"Not only has this project seen a $490 million budget blowout, but Corrections defends an exorbitant $11 million spend-up for screen planting, ground cover, and paving around the new prisons.

"This is the same contractor who reportedly resigned from Corrections on 13 July 2000 and two days later took up a consulting contract with them worth $200,000 for work that was not put out to tender.

"That contract was varied in 2001 and 2003, both with increases in the daily rate, and the only time Corrections put the contract out to tender was in 2004.

"In 2001, acting chief financial officer Mike Martelli said the position was not advertised because it was a three-year contract and they were not looking for a permanent employee. He said Mr Hamilton had skills that delivered projects on time and to budget.

"Well, three years has turned into five, and $400 million has turned into $890 million and counting.

"Corrections Minister Damien O'Connor has some serious questions to answer," says Mr Power:

* Has the $2 million paid to Jagcon serviced the taxpayer well? * On what grounds has Jagcon's daily rate increased when there has been such a massive budget blowout?

ENDS

© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Zimbabwe: New Democracy, Or A False Dawn?

Gordon Campbell: Robert Mugabe = Hosni Mubarak. The current jubilation on the streets of Harare at the fall of Zimbabwe’s dictator Robert Mugabe is genuine, and one hates to be negative about the country’s future. Yet the situation is eerily similar to the scenes in Cairo in early 2011, when a popular uprising swept Hosni Mubarak from power in Egypt. More>>

 

Gordon Campbell: On The New Pike River Agency (And The Air Strike Wing)

Much of the sympathy the public still feels for the families of the Pike River miners has been sustained by the sense that the previous government – let alone the mining company and the processes of receivership and litigation – has never dealt honestly, or fairly, with them. More>>

ALSO:

Not Going Swimmingly: Contractor Cut, New Dates For Christchurch Sports Centre

“As an incoming Minister, I have been conducting a thorough review of progress on the Anchor projects and to learn of a $75 million budget blowout on this project was very disappointing..." More>>

ALSO:

Tertiary: Allowances, Loan Living Costs To Get Boost

“From 1 January, student allowance base rates and the maximum amount students can borrow for living costs will rise by a net $50 a week,” says Education Minister Chris Hipkins... further adjusted from 1 April 2018 in line with any increase in the CPI. More>>

ALSO:

Foreign Affairs: Patrick Gower Interviews Jacinda Ardern

Prime Minister Jacinda Ardern says discussions have already begun on how to bring climate change refugees into New Zealand under a Pacific seasonal employment plan... More>>

ALSO:

Gordon Campbell: On The Centre Right’s Love Of ‘Nanny State’

You’d almost think it was 2005 again. That was a time when the rugged individualists of the centre-right were being beset by government regulations on the nature of light-bulbs, the size of shower heads, the junk food available at school tuck shops and other such essentials... More>>

Speaking Of Transport: Public Engagement On Wellington Scenarios

“Our work on possible solutions for Wellington’s transport future is ongoing, but has progressed to the stage where we’re ready to share our ideas with the public and seek their feedback to help guide our next steps...” More>>

ALSO:

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

Featured InfoPages

Opening the Election