Gordon Campbell | Parliament TV | Parliament Today | News Video | Crime | Employers | Housing | Immigration | Legal | Local Govt. | Maori | Welfare | Unions | Youth | Search

 

Corrections says misconceptions bizarre

10 March 2006

Corrections says misconceptions bizarre

Corrections Chief Executive Barry Matthews says “it is bizarre for anyone to suggest Corrections didn’t know that prisons need more steel than other commercial buildings or that they have to be built stronger than other buildings”.

“There are a number of misconceptions currently in the public arena regarding the new prisons building programme,” says Mr Matthews.

“First there is a clear misunderstanding as to what role Corrections’ management has in the programme. At all times Corrections has been acting on the advice and technical expertise of its quantity surveyors and other professional advisors. Estimates, costings and other relevant information have been supplied by the private sector. This is a private sector build and Corrections has employed the best contractors and consultants to do the job. We have been in partnership with them from the outset of the project.

“There has and remains a high level of private sector involvement including major and well respected New Zealand and Australasian construction and related companies. Some of which have been involved in building prisons here and overseas for a number of years. And very successfully.

“It is hard to understand how anyone reading the Cabinet paper in its entirety could not have come to the proper understanding of what the paper actually said. That is, the issue is with the Index used to calculate possible cost escalation in construction over the period of the project.

“The Index used to measure the growth of inflation is the Capital Goods Pricing Index for Non-residential buildings put out by New Zealand Institute of Economic Research.

“Unfortunately over the construction period the cost of steel, which is a major component, has risen 26 % and this has been greater than the Index allowed. As the paper states the Index, which was applied to initial cost estimates in 2002/03, had forecast average annual change (growth) at 2.5% in 2003, 2.1% in 2004 and 1.9% in 2005 and beyond.

“It is hard to see how public understanding of cost pressures facing Corrections could have been enhanced without reference to these facts.”

ENDS


© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

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.

Finally, yesterday’s announcement by the Ardern government that a new state agency will be set up to assess and plan the manned re-entry to the mine (on a set timetable) goes a long way to meeting the families’ remaining request: that they be enabled, if at all possible, to bury their loved ones. More>>

 

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:

Parental Leave: National's Time-Sharing Change Fails

National has proposed a change to the Parental Leave and Employment Protection Amendment Bill that would allow both parents to take paid parental leave at the same time, if that is what suits them best. More>>

ALSO:

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

Featured InfoPages

Opening the Election