Hon Paula Bennett
Minister of State Services
18 June 2015

Getting smart about accommodating the Crown

Strategic thinking about property needs for Government agencies in Wellington will deliver savings for taxpayers, State Services Minister Paula Bennett says.

The Property Management Centre of Expertise (PMCoE) today moves into the second phase of the Wellington Accommodation Project – Tranche Two (WAP2).

“WAP2 outlines a plan to optimise leased office space in Wellington so that agencies can continue to deliver outstanding public services and save taxpayer dollars,” Mrs Bennett says.

24 government agencies involving 8,700 staff have been identified, with projected cost reductions of at least $191 million over the next 20 years.

“It is clear that by thinking long-term about the Government’s property needs, we can deliver real savings for taxpayers,” says Mrs Bennett.

“WAP2 will reduce the Crown’s rental footprint by 14,500m², which is in addition to the 121,433m² in reductions already made since 2011.

“While these figures can be hard to visualise, in real terms WAP2 will see agencies reduce the number of floors they use from 160 to 107.”

Options include co-locating agencies together, accommodating those with common functions in the same building, and putting agencies into buildings near to each other where it makes sense and saves money.

Further cost savings are being pursued by using a consistent and prudent approach to procuring and installing furniture, ICT infrastructure, and reusing existing materials.

“New Zealanders quite rightly expect that even though an agency may move into a new office space, they can and should reuse existing fit out and furniture where possible,” says Mrs Bennett.

WAP2 is a three phase project and will now move into phase two. The three project phases are as follows:

· Phase One – Initial procurement process, and Single Stage Business Case

· Phase Two – Negotiations with preferred suppliers and final procurement

· Phase Three – Implementation

The WAP2 project follows on from the successful conclusion of the Wellington Accommodation Project – Tranche One (WAP1), during which PMCoE led a cross-agency procurement and business case process for head office accommodation in Wellington for the Ministry of Education; Ministry of Social Development; Ministry of Health; Ministry of Business Innovation & Employment; and Crown Law.

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