Don’t use shonky system to rebuild Mt Eden

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Thu May 08 2008 12:00:00 GMT+1200 (New Zealand Standard Time)

Don’t use shonky system to rebuild Mt Eden

Thursday, 8 May 2008, 9:08 am
Press Release: New Zealand National Party

The Government should assure the public that the $216 million refurbishment of Mt Eden Prison will use a standard get-a-price-and-stick-to-it contract, and not use the disastrous CWA system, says National’s Justice & Corrections spokesman, Simon Power.

“The Collaborative Working Arrangement system cost the taxpayer $505 million in cost overruns on the three newest regional prisons, and resulted in Otago Prison opening late, and it must never be repeated.”

Unlike a traditional contract, CWAs operate without a fixed price from the beginning, and so expose taxpayers to unnecessary risk.

“Under that system, the Government spent $471 million of taxpayers’ money before it had any idea of target costs for the project.

“In the end, the cost of Auckland Women’s Prison blew out by $100 million, Otago Prison by $139 million, and Springhill Prison by $266 million

“Corrections should have learned from that mistake.

“Corrections Minister Phil Goff must assure us that he will not use that shonky system for this project.”

Ends

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