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Housing NZ renovations: 108 units at $122,000 each

Phil Heatley MP
National Party Housing Spokesman

23 April 2006

Housing NZ renovations – 108 units at $122,000 each

National Party Housing spokesman Phil Heatley is raising still more questions about Housing New Zealand’s tendering process and the cost of tax-funded building work.

He is today releasing figures that show HNZ is spending more than $122,000 on each of 108 units being modernised in the Auckland subdivision known as Talbot Park in Glen Innes.

The development was estimated to cost $27.5m four years ago, but the cost has since ballooned to $48.66m.

“When you lay the renovation cost of $122,000 per unit alongside the $236,000 it’s costing HNZ to build a new home from scratch in this suburb, you start to wonder whether taxpayers are getting a good deal.

“And if you take that $122,000 per unit renovation cost, and put it next to the average $105,000 it’s costing HNZ to add an extra room to state houses, it’s hard not to draw the conclusion that the whole tendering process needs to be examined.”

Mr Heatley has written to the Auditor-General, who is investigating whistleblower claims surrounding HNZ, to ask that the $105,000 average cost of an extra room to be added to the inquiry. Official industry figures indicate the costings are on the high side.

“I know the Auditor-General is working to a very tight deadline so I doubt all the questions will be answered.

“But I will certainly be adding these latest numbers to the case I am putting together for a transparent and public select committee inquiry,” says Mr Heatley.

ENDS

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