10. SIMON POWER (National—Rangitikei) Link to this
to the Minister of Corrections
What were the original costs approved by Cabinet for each of the four new regional prisons, and does he agree with then Department of Corrections Chief Executive, Mark Byers, who said in October 2002 that the four new prisons would reportedly “cost about $400 million to house 1,400 inmates”?
Hon DAMIEN O'CONNOR (Minister of Corrections) Link to this
Cabinet approved the Regional Prisons Development Project in a series of decisions over a number of years. A full and final cost was confirmed last year for the first time.
Has the Minister sought an explanation from his officials regarding the $57 million omission from earlier estimates for prisons in Springhill and Otago; and what specific maintenance will be deferred in existing prisons?
Hon DAMIEN O'CONNOR Link to this
The $50 million that the member is referring to was there because designs could not be finalised until consultation with the community had been completed. Omissions in design relating to about $50 million were identified for the finalisation of designs following that process.
Does the Minister agree that going from $285,714 per prison bed to $549,043 per prison bed is a shameful illustration of the Government’s incompetence; if not, why not?
Hon DAMIEN O'CONNOR Link to this
The building of prisons is unlike the building of houses. The facilities are not the average home; they require the highest level of security in order to keep the public safe. The reality is that the economy has been growing strongly, and the costs of steel and concrete have increased considerably.
Can the Minister now guarantee that his department will not spend $1 extra over the $890 million total on the four new regional prisons; if not, why not?
Hon DAMIEN O'CONNOR Link to this
The costs have been reviewed both internally and by independent quantity surveyors. Based on that work, the department believes that it can complete construction on time and within budget.
Will the Government or the Minister be considering greater use of public-private partnerships in an attempt to use taxpayers’ funds more efficiently and more effectively; if not, why on earth not?
Hon DAMIEN O'CONNOR Link to this
Private prisons have proven not to be less costly. The previous National Government considered whether the Northland prison project should be constructed and managed by the private sector. It rejected that proposal, which was the last sensible decision that the National Government ever made.
Ron MarkCould the cost of constructing prisons not be made immediately cheaper if, instead of funding the purchase of new real estate—as the Government has done at Kaharoa, where it has spent approximately $2 million buying 19 hectares for a youth prison—it simply used land that is currently in its ownership with the Department of Corrections or the Ministry of Defence, end of story?
Hon DAMIEN O'CONNOR Link to this
The Department of Corrections, like any other Government department or private organisation, has to go through an extensive resource consent process. It endeavours to find the best place to construct the right facilities. We do that at the least cost available.