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


Corrections in costings blow-out

Simon Power
National Party Law & Order Spokesman

26 December 2005

Corrections in costings blow-out

National’s Law & Order spokesman, Simon Power, says latest increases in future spending estimates by the Corrections Department indicate bad planning and a Minister who is having trouble coming to grips with his portfolio.

He is commenting on the December Economic and Fiscal Update (DEFU), which shows that the specific financial risks forecast for ‘Corrections - Capital Projects’ has doubled in the past six months.

“This is pretty amazing. It makes you wonder if they really have any idea what they are doing,” says Mr Power. “In six months the operating estimates have jumped by 156% and the capital estimates by 52%.

“This follows on from the recent spiralling cost of new prisons: Otago Region Corrections Facility cost jumped $13 million in a year, Springhill Prison cost rose from an original $184 million to $250 million, and the newly completed Ngawha Prison jumped from $40 million to $132 million.”

The Corrections Department fiscal update figures for 2005 were:

• May – Budget Economic and Fiscal Update (BEFU):

Operating: $92 million. Capital: $118 million.
• August – Pre-election Economic and Fiscal Update (PREFU):

Operating: $118 million. Capital: $124 million
• December – December Economic Fiscal Update (DEFU):

Operating: $236 million. Capital: $180 million.

The DEFU says the increase since the pre-election update reflects ‘revised inmate forecasts and construction costs’.

“Why have these costings changed so much in just six months? There have been no surprises. We have all known about the projected increase in the muster.

“There have got to be real concerns over Corrections’ planning, and about its leadership,” says Mr Power.

“So far Minister Damien O’Connor has been conspicuous by his silence on the troubles in his department. That has got to change very soon.”


© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On The Sharma Chameleon

Gather round the camp-fire, folks. Let me tell you about the Ice Age era of the fourth Labour government, when mean, sabre-toothed tigers like Richard Prebble ranged at large within the Labour caucus. A being so mean and fierce that - legend has it – he once made Michael Cullen cry. So while Labour MP Dr Gaurav Sharma may (or may not) have suffered cruelly at the hands of his colleagues one thing is clear: former Labour whip Kieran McAnulty is no Richard Prebble. If you can be bullied by the likes of Kieran McAnulty, you might need to have your hand held while you cross the road in the political traffic...


Privacy Commissioner: Public Input Sought To Inform Privacy Rules For Biometrics
Privacy Commissioner Michael Webster is encouraging New Zealanders to have their say on the use of biometric information in Aotearoa New Zealand... More>>

National: Food Prices Climb Taking Kiwis Backwards
Kiwi families continue to battle runaway food prices, National’s Finance spokesperson Nicola Willis says... More>>

Transport & Infrastructure: Have Your Say On The Future Of Inter-regional Passenger Rail In New Zealand

The Transport and Infrastructure Committee has opened an inquiry into the future of inter-regional passenger rail in New Zealand. The aim of the inquiry is to find out what the future could hold for inter-regional passenger rail... More>>

Government: Creating Sustainable Public Transport For All
Workers and public transport users are at the heart of the new Sustainable Public Transport Framework, Transport Minister Michael Wood announced today... More>>

Government: Tax Break To Boost Long-term Rental Supply
The Government is encouraging more long-term rental options by giving developers tax relief for as long as the homes are held as long-term rentals, the Housing Minister Megan Woods has announced... More>>

National: NZ Migrant Arrivals Hit Lowest Mark Since 1990s
Today’s net migration figures show that Labour has failed to deliver the desperately needed skilled migrants they promised, meaning labour shortages will persist into the future, National’s Immigration spokesperson Erica Stanford says... More>>




InfoPages News Channels