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

 

Govt takes action on $75M cost Chch sports facility blow-out

Govt takes action on $75M cost Chch sports facility blow-out

By Pattrick Smellie

Nov. 21 (BusinessDesk) - The government has made its first big call on the Christchurch rebuild, calling a halt to the city's multi-sports centre project after learning its cost had blown out by $75 million to more than $300 million.

While the city is still expected to get the same or a similar range of sporting facilities, Christchurch Recovery Minister Megan Woods announced she had requested an urgent review of options for the project, such as whether it would be beneficial to combine part or all of the Metro Sports Facility with the proposed Multi Use Arena.

“The people of Canterbury were promised a high quality sporting facility," said Woods in a statement. "It’s clear that the plan agreed under the previous government was not going to be able to deliver that without unacceptable extra costs. I know we can’t continue with the same approach and expect a different outcome. Today’s announcement is about setting out a clear roadmap to deliver a fit for purpose facility that Cantabrians deserve."

The plan agreed under the previous National Party-led government appears to have fallen foul of increasing risk aversion among contractors for major construction projects, particularly following a string of earnings downgrades announced by Fletcher Building after it revealed it had underbid on at least two major government-related projects, widely assumed to be the Christchurch Justice Precinct and Auckland's new international convention centre.

The previous government’s plan was to involve a contractor early in the process, but Woods said official advice showed that if the project went ahead on that procurement approach, it would be well over budget.

“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," she said. "That is an undue burden on taxpayers and ratepayers for a project that is already significantly delayed – in fact the facility was due to be opened by now, yet construction has not even begun. We can do better.

"The early contractor involvement will be cancelled."

As well as reviewing the project, Woods has instructed Otakaro, the development company charged with completing the city's major post-quake construction projects, to complete detailed design work itself and to prepare for a new build-only contract.

"This will be completed by March April/2018, allowing the facility to be opened in the first quarter of 2021 if we proceed with this contract," she said.

(BusinessDesk)

© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Lest We Forget: ANZAC Day - WWI 100 Year Anniversary

The Governor-General, The Rt Hon Dame Patsy Reddy, GNZM, QSO, will represent the people of New Zealand at the 2018 Anzac Day commemorations in Gallipoli. On Anzac Day, Dame Patsy will speak at the Joint New Zealand and Australian Dawn Service in Anzac Cove, and at the New Zealand Commemorative Service at Chunuk Bair later that morning... More>>

 

HiveMind: Fair Enough? How Should New Zealanders Be Taxed?

Have Your Say - Scoop and PEP invite you to share your issues, ideas and perspectives on the NZ tax system with other New Zealanders using Scoop’s HiveMind tool. This Tax HiveMind is intended to complement and feed into the review being run by the Government-appointed Tax Working Group (TWG), which is looking at the fairness, balance and structure of the tax system with a 10-year time horizon. More>>

ALSO:

Gordon Campbell: On Thompson + Clark & Russia’s World Cup

Daily, the coalition government keeps running into examples of the toxic legacy left behind by National – and just as regularly, even the simple fixes are proving stubbornly difficult to enact. Take the case of the security firm Thompson + Clark ... More>>

ALSO:

Gordon Campbell: On The GCSB’s Security Hang-Up With Russia

So our GCSB has chimed in, alongside its British, Australian and US allies, with warnings about a “fresh wave” of Russian cyber attacks, although the warning has been curiously framed. More>>

ALSO:

PM's Europe Trip: CHOGM & Bilateral Meetings

Prime Minister Jacinda Ardern is in Europe for the Commonwealth Heads of Government Meeting (CHOGM) in London and meetings with counterparts in Paris and Berlin. More>>

ALSO:


Addressing Climate Change: No New Offshore Exploration Permits

The Coalition Government is taking an important step to address climate change and create a clean, green and sustainable future for New Zealand, Prime Minister Jacinda Ardern announced today. More>>

ALSO:

Road Safety Summit: Actions To Improve Identified

The Local Government Road Safety Summit held last week identified actions that will lead to lasting changes to road safety in New Zealand, says Associate Transport Minister Julie Anne Genter. More>>

ALSO:

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

Featured InfoPages