Transmission Gully PPP
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- Date published:
10:46 am, May 7th, 2020 - 56 comments
Categories: corruption, Politics, Public Private Partnerships, Simon Bridges, transport, uncategorized -
Tags: nzta
No Right Turn has a piece on the Transmission Gully project – which appears to be turning into mush. The title “A death-knell for PPPs?” says it all.
When the then-National government approved a public-private partnership (PPP) funding model for Transmission Gully, it claimed it was all about building it quicker and cheaper. Paying a private company’s profit margin would supposedly give “certainty of delivery and… better value for money”. So how has it turned out? The cost has blown out by $191 million, a third of the road has failed quality checks and needs to be torn up and re-laid, the project is now delayed until 2021, and rather than face these costs, the PPP contractor is planning to walk away and dump everything back on the government:
That last NewsHub link indicates that NZTA said in February that a cost overrun of more than a fifth would push the total cost up to over a billion dollars and have a delay in completion from May to December. Now, presumably as a result of missing crucial periods during lockdown before the winter months and the inability to fly staff back in from overseas, they appear to be saying that it will complete some time in 2021.
But the NewsHub article also suggests that the primary contractor CPB HEB may be looking to pull out of the contract. That it has already dropped sub-contractors and that equipment is already being moved off-site. The urgent negotiations could be that or or could be who is going to have to pay for the costs related to the pandemic.
No Right Turn’s conclusion is that..
The entire project looks to be an expensive failure. Rather than transferring risk to the private sector, it turns out to be the usual scam of privatising profits and socialising losses. And its hard to escape the impression that we could have built it quicker and cheaper and without the quality issues caused by the contractor shaving costs and using substandard materials to increase its profits by just getting the government to do it in the first place. And hopefully it will be a death knell for PPPs in this country.
It is hard to disagree about the lack of public value with PPPs. At least if you aren’t a blind ideological idiot with delusions that the private market is always more efficient. While there must have been the mythic ‘good for the public’ PPPs. But I have never observed them when looked retrospectively from 20 years in a developed non-corrupt country. The best that I have seen have been ones that would be about the same what would be expected if the government agencies built it themselves. Except those always look like lowball build to get higher toll profits.
I’d also observe that just having PPPs appears to correlate pretty well with increases in public servant corruption – even if you just look at aussie. The way that PPPs cover themselves in ‘commercial sensitivity’ and highly prejudicial contract clauses disguises from the public the true risk costs of public projects.
The worst one I saw was for a toll motorway in Sydney that if the toll revenue wasn’t sufficient, would cause the state government to close the free roads to drive revenue to the private operators of the toll road – the roads that were meant to provide a non-tolled alternative. There are quite a few examples listed in this NSW state government report in particular Chapter 3.
When you look at the cost overruns and delays on commissioning projects compared to the government builds after the fact. It’d be interesting to find if any one has done a decades after analysis of comparable projects. But to my eye the results really don’t look different, and certainly don’t indicate any real advantage in private involvement.
In effect, as No Right Turn states PPPs seem to be designed to “be the usual scam of privatising profits and socialising losses”. They also seem to be perfectly designed for politicians to take lowball bids and push the true costs into the future. But which also allow them to view with alarm at a later date. Cue our ex-minister of transport Simon (no) Bridges.
While the current circumstances with the pandemic of this PPP are pretty unusual for NZ, I suspect that we’re going to see the other unfortunate effect of PPPs. A discontinuity in the build whilst the parties have a legal obligation and who bears the costs disagreement – that further delays the project.
As Jenny Michie said here back in 2011 in “Are PPPs the best we can do?“
PPP is privatisation with a better name. It’s no surprise that National is in favour of them: getting rich on the public purse is in their DNA. What is more concerning is that people like Len Brown want to use them to help build infrastructure in Auckland.
Are we really so bereft of ideas as a nation that PPPs are the best we can come up with?
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- Release: More accountability for preventable workplace deaths this Workers’ Memorial DayLabour is calling for more accountability for preventable workplace deaths because everybody who goes to work deserves to come home safely. ...1 week ago
- Gaza: Aotearoa Must Support Independent Investigation into Mass GravesTe Pāti Māori are demanding the New Zealand Government support an international independent investigation into mass graves that have been uncovered at two hospitals on the Gaza strip, following weeks of assault by Israeli troops. Among the 392 bodies that have been recovered, are children and elderly civilians. Many of ...2 weeks ago
- Release: Working together on consistent support for veterans this Anzac DayOur two-tiered system for veterans’ support is out of step with our closest partners, and all parties in Parliament should work together to fix it, Labour veterans’ affairs spokesperson Greg O’Connor said. ...2 weeks ago
- Release: Penny drops – but what about Seymour and Peters?Stripping two Ministers of their portfolios just six months into the job shows Christopher Luxon’s management style is lacking, Labour Leader Chris Hipkins said. ...2 weeks ago
- Another ‘Stolen Generation’ enabled by court ruling on Waitangi Tribunal summonsTonight’s court decision to overturn the summons of the Children’s Minister has enabled the Crown to continue making decisions about Māori without evidence, says Te Pāti Māori spokesperson for Children, Mariameno Kapa-Kingi. “The judicial system has this evening told the nation that this government can do whatever they want when ...2 weeks ago
- Release: Budget blunder shows Nicola Willis could cut recovery fundingIt appears Nicola Willis is about to pull the rug out from under the feet of local communities still dealing with the aftermath of last year’s severe weather, and local councils relying on funding to build back from these disasters. ...2 weeks ago
- Further environmental mismanagement on the cardsThe Government’s resource management reforms will add to the heavy and ever-growing burden this Government is loading on to our environment. ...2 weeks ago
- Release: RMA changes will be a disaster for environmentThe Government is making short-sighted changes to the Resource Management Act (RMA) that will take away environmental protection in favour of short-term profits, Labour’s environment spokesperson Rachel Brooking said today. ...2 weeks ago
- Release: Labour supports urgent changes to emergency management systemLabour welcomes the release of the report into the North Island weather events and looks forward to working with the Government to ensure that New Zealand is as prepared as it can be for the next natural disaster. ...2 weeks ago
- Release: Labour calls for New Zealand to recognise PalestineThe Labour Party has called for the New Zealand Government to recognise Palestine, as a material step towards progressing the two-State solution needed to achieve a lasting peace in the region. ...2 weeks ago
- Release: Three strikes law political posturing of worst kindThe Government is bringing back a law that has little evidential backing just to look tough, Labour justice spokesperson Duncan Webb said. ...2 weeks ago
- Release: Government cuts unbelievably target child exploitation, violent extremism, ports and airpor...Some of our country’s most important work, stopping the sexual exploitation of children and violent extremism could go along with staff on the frontline at ports and airports. ...2 weeks ago
- Three strikes has failed before and will fail againResurrecting the archaic three-strikes legislation is an unwelcome return to a failed American-style approach to justice. ...2 weeks ago
- Release: Environmental protection vital, not ‘onerous’The Government’s Fast Track Approvals Bill will give projects such as new coal mines a ‘get out of jail free’ card to wreak havoc on the environment, Labour Leader Chris Hipkins said today. ...2 weeks ago
- Ferris – Three Strikes targets those ‘too brown to be white’The government's decision to reintroduce Three Strikes is a destructive and ineffective piece of law-making that will only exacerbate an inherently biased and racist criminal justice system, said Te Pāti Māori Justice Spokesperson, Tākuta Ferris, today. During the time Three Strikes was in place in Aotearoa, Māori and Pasifika received ...2 weeks ago
- Release: Govt cuts doctors and nurses in hiring freezeCuts to frontline hospital staff are not only a broken election promise, it shows the reckless tax cuts have well and truly hit the frontline of the health system, says Labour Health spokesperson Ayesha Verrall. ...3 weeks ago
- Fast-track submissions period must be extendedThe Green Party has joined the call for public submissions on the fast-track legislation to be extended after the Ombudsman forced the Government to release the list of organisations invited to apply just hours before submissions close. ...3 weeks ago
- Release: Progress on climate will be undone by GovtNew Zealand’s good work at reducing climate emissions for three years in a row will be undone by the National government’s lack of ambition and scrapping programmes that were making a difference, Labour Party climate spokesperson Megan Woods said today. ...3 weeks ago
- Smarter lunch programme feeds more, costs less
Associate Education Minister David Seymour has today announced that the Government will be delivering a more efficient Healthy School Lunches Programme, saving taxpayers approximately $107 million a year compared to how Labour funded it, by embracing innovation and commercial expertise. “We are delivering on our commitment to treat taxpayers’ money ...1 hour ago - Report provides insights into marine recoveryNew research on the impacts of extreme weather on coastal marine habitats in Tairāwhiti and Hawke’s Bay will help fishery managers plan for and respond to any future events, Oceans and Fisheries Minister Shane Jones says. A report released today on research by Niwa on behalf of Fisheries New Zealand ...3 hours ago
- NZ to send political delegation to the PacificDeputy Prime Minister and Foreign Minister Winston Peters will lead a broad political delegation on a five-stop Pacific tour next week to strengthen New Zealand’s engagement with the region. The delegation will visit Solomon Islands, Papua New Guinea, Vanuatu, New Caledonia, and Tuvalu. “New Zealand has deep and ...3 hours ago
- Low gas production threatens energy securityThere has been a material decline in gas production according to figures released today by the Gas Industry Co. Figures released by the Gas Industry Company show that there was a 12.5 per cent reduction in gas production during 2023, and a 27.8 per cent reduction in gas production in the ...8 hours ago
- Defence industry talent, commitment recognisedDefence Minister Judith Collins tonight announced the recipients of the Minister of Defence Awards of Excellence for Industry, saying they all contribute to New Zealanders’ security and wellbeing. “Congratulations to this year’s recipients, whose innovative products and services play a critical role in the delivery of New Zealand’s defence capabilities, ...16 hours ago
- Speech to the Minister of Defence Awards of Excellence for IndustryWelcome to you all - it is a pleasure to be here this evening.I would like to start by thanking Greg Lowe, Chair of the New Zealand Defence Industry Advisory Council, for co-hosting this reception with me. This evening is about recognising businesses from across New Zealand and overseas who in ...17 hours ago
- Speech to the Sixth Annual New Zealand Government Data SummitIt is a pleasure to be speaking to you as the Minister for Digitising Government. I would like to thank Akolade for the invitation to address this Summit, and to acknowledge the great effort you are making to grow New Zealand’s digital future. Today, we stand at the cusp of ...18 hours ago
- Ceasefire agreement needed now: PetersNew Zealand is urging both Israel and Hamas to agree to an immediate ceasefire to avoid the further humanitarian catastrophe that military action in Rafah would unleash, Foreign Minister Winston Peters says. “The immense suffering in Gaza cannot be allowed to worsen further. Both sides have a responsibility to ...23 hours ago
- Daily school attendance data now availableA new online data dashboard released today as part of the Government’s school attendance action plan makes more timely daily attendance data available to the public and parents, says Associate Education Minister David Seymour. The interactive dashboard will be updated once a week to show a national average of how ...24 hours ago
- Ambassador to United States appointedForeign Minister Winston Peters has announced Rosemary Banks will be New Zealand’s next Ambassador to the United States of America. “Our relationship with the United States is crucial for New Zealand in strategic, security and economic terms,” Mr Peters says. “New Zealand and the United States have a ...1 day ago
- New permit proposed for recreational gold miningThe Government is considering creating a new tier of minerals permitting that will make it easier for hobby miners to prospect for gold. “New Zealand was built on gold, it’s in our DNA. Our gold deposits, particularly in regions such as Otago and the West Coast have always attracted fortune-hunters. ...1 day ago
- NZ and the UAE launch FTA negotiationsMinister for Trade Todd McClay today announced that New Zealand and the United Arab Emirates (UAE) will commence negotiations on a free trade agreement (FTA). Minister McClay met with his counterpart UAE Trade Minister Dr Thani bin Ahmed Al Zeyoudi in Dubai, where they announced the launch of negotiations on a ...1 day ago
- New Zealand Sign Language Week an opportunity for anyone to signNew Zealand Sign Language Week is an excellent opportunity for all Kiwis to give the language a go, Disabilities Issues Minister Louise Upston says. This week (May 6 to 12) is New Zealand Sign Language (NZSL) Week. The theme is “an Aotearoa where anyone can sign anywhere” and aims to ...2 days ago
- Next stop NASA for New Zealand studentsSix tertiary students have been selected to work on NASA projects in the US through a New Zealand Space Scholarship, Space Minister Judith Collins announced today. “This is a fantastic opportunity for these talented students. They will undertake internships at NASA’s Ames Research Center or its Jet Propulsion Laboratory (JPL), where ...2 days ago
- $1.9 billion investment to keep NZ safe from crimeNew Zealanders will be safer because of a $1.9 billion investment in more frontline Corrections officers, more support for offenders to turn away from crime, and more prison capacity, Corrections Minister Mark Mitchell says. “Our Government said we would crack down on crime. We promised to restore law and order, ...2 days ago
- OECD reinforces need to control spendingThe OECD’s latest report on New Zealand reinforces the importance of bringing Government spending under control, Finance Minister Nicola Willis says. The OECD conducts country surveys every two years to review its members’ economic policies. The 2024 New Zealand survey was presented in Wellington today by OECD Chief Economist Clare Lombardelli. ...2 days ago
- Agreement delivers Local Water Done Well for AucklandThe Government has delivered on its election promise to provide a financially sustainable model for Auckland under its Local Water Done Well plan. The plan, which has been unanimously endorsed by Auckland Council’s Governing Body, will see Aucklanders avoid the previously projected 25.8 per cent water rates increases while retaining ...3 days ago
- Gaza and the Pacific on the agenda with GermanyForeign Minister Winston Peters discussed the need for an immediate ceasefire in Gaza, and enhanced cooperation in the Pacific with German Foreign Minister Annalena Baerbock during her first official visit to New Zealand today. "New Zealand and Germany enjoy shared interests and values, including the rule of law, democracy, respect for the international system ...4 days ago
- Decision allows for housing growth in Western Bay of PlentyThe Minister Responsible for RMA Reform, Chris Bishop today released his decision on four recommendations referred to him by the Western Bay of Plenty District Council, opening the door to housing growth in the area. The Council’s Plan Change 92 allows more homes to be built in existing and new ...5 days ago
- Speech to New Zealand China CouncilThank you, John McKinnon and the New Zealand China Council for the invitation to speak to you today. Thank you too, all members of the China Council. Your effort has played an essential role in helping to build, shape, and grow a balanced and resilient relationship between our two ...5 days ago
- Modern insurance law will protect Kiwi householdsThe Government is modernising insurance law to better protect Kiwis and provide security in the event of a disaster, Commerce and Consumer Affairs Minister Andrew Bayly announced today. “These reforms are long overdue. New Zealand’s insurance law is complicated and dated, some of which is more than 100 years old. ...6 days ago
- Government recommits to equal payThe coalition Government is refreshing its approach to supporting pay equity claims as time-limited funding for the Pay Equity Taskforce comes to an end, Public Service Minister Nicola Willis says. “Three years ago, the then-government introduced changes to the Equal Pay Act to support pay equity bargaining. The changes were ...6 days ago
- Transforming how our children learn to readStructured literacy will change the way New Zealand children learn to read - improving achievement and setting students up for success, Education Minister Erica Stanford says. “Being able to read and write is a fundamental life skill that too many young people are missing out on. Recent data shows that ...6 days ago
- NZ not backing down in Canada dairy disputeTrade Minister Todd McClay says Canada’s refusal to comply in full with a CPTPP trade dispute ruling in our favour over dairy trade is cynical and New Zealand has no intention of backing down. Mr McClay said he has asked for urgent legal advice in respect of our ‘next move’ ...6 days ago
- Stronger oversight for our most vulnerable childrenThe rights of our children and young people will be enhanced by changes the coalition Government will make to strengthen oversight of the Oranga Tamariki system, including restoring a single Children’s Commissioner. “The Government is committed to delivering better public services that care for our most at-risk young people and ...6 days ago
- Streamlining Building Consent ChangesThe Government is making it easier for minor changes to be made to a building consent so building a home is easier and more affordable, Building and Construction Minister Chris Penk says. “The coalition Government is focused on making it easier and cheaper to build homes so we can ...6 days ago
- Minister acknowledges passing of Sir Robert Martin (KNZM)New Zealand lost a true legend when internationally renowned disability advocate Sir Robert Martin (KNZM) passed away at his home in Whanganui last night, Disabilities Issues Minister Louise Upston says. “Our Government’s thoughts are with his wife Lynda, family and community, those he has worked with, the disability community in ...7 days ago
- Speech to New Zealand Institute of International Affairs, Parliament – Annual Lecture: Challenges ...Good evening – Before discussing the challenges and opportunities facing New Zealand’s foreign policy, we’d like to first acknowledge the New Zealand Institute of International Affairs. You have contributed to debates about New Zealand foreign policy over a long period of time, and we thank you for hosting us. ...7 days ago
- Accelerating airport security linesFrom today, passengers travelling internationally from Auckland Airport will be able to keep laptops and liquids in their carry-on bags for security screening thanks to new technology, Transport Minister Simeon Brown says. “Creating a more efficient and seamless travel experience is important for holidaymakers and businesses, enabling faster movement through ...7 days ago
- Community hui to talk about kina barrensPeople with an interest in the health of Northland’s marine ecosystems are invited to a public meeting to discuss how to deal with kina barrens, Oceans and Fisheries Minister Shane Jones says. Mr Jones will lead the discussion, which will take place on Friday, 10 May, at Awanui Hotel in ...1 week ago
- Kiwi exporters win as NZ-EU FTA enters into forceKiwi exporters are $100 million better off today with the NZ EU FTA entering into force says Trade Minister Todd McClay. “This is all part of our plan to grow the economy. New Zealand's prosperity depends on international trade, making up 60 per cent of the country’s total economic activity. ...1 week ago
- Mining resurgence a welcome signThere are heartening signs that the extractive sector is once again becoming an attractive prospect for investors and a source of economic prosperity for New Zealand, Resources Minister Shane Jones says. “The beginnings of a resurgence in extractive industries are apparent in media reports of the sector in the past ...1 week ago
- Ō-Rākau Remembrance Bill passes first readingThe return of the historic Ō-Rākau battle site to the descendants of those who fought there moved one step closer today with the first reading of Te Pire mō Ō-Rākau, Te Pae o Maumahara / The Ō-Rākau Remembrance Bill. The Bill will entrust the 9.7-hectare battle site, five kilometres west ...1 week ago
- Government to boost public EV charging networkEnergy Minister Simeon Brown has announced 25 new high-speed EV charging hubs along key routes between major urban centres and outlined the Government’s plan to supercharge New Zealand’s EV infrastructure. The hubs will each have several chargers and be capable of charging at least four – and up to 10 ...1 week ago
- Residential Property Managers Bill to not progressThe coalition Government will not proceed with the previous Government’s plans to regulate residential property managers, Housing Minister Chris Bishop says. “I have written to the Chairperson of the Social Services and Community Committee to inform him that the Government does not intend to support the Residential Property Managers Bill ...1 week ago
- Independent review into disability support servicesThe Government has announced an independent review into the disability support system funded by the Ministry of Disabled People – Whaikaha. Disability Issues Minister Louise Upston says the review will look at what can be done to strengthen the long-term sustainability of Disability Support Services to provide disabled people and ...1 week ago
- Justice Minister updates UN on law & order planJustice Minister Paul Goldsmith has attended the Universal Periodic Review in Geneva and outlined the Government’s plan to restore law and order. “Speaking to the United Nations Human Rights Council provided us with an opportunity to present New Zealand’s human rights progress, priorities, and challenges, while responding to issues and ...1 week ago
- Ending emergency housing motels in RotoruaThe Government and Rotorua Lakes Council are committed to working closely together to end the use of contracted emergency housing motels in Rotorua. Associate Minister of Housing (Social Housing) Tama Potaka says the Government remains committed to ending the long-term use of contracted emergency housing motels in Rotorua by the ...1 week ago
- Trade Minister travels to Riyadh, OECD, and DubaiTrade Minister Todd McClay heads overseas today for high-level trade talks in the Gulf region, and a key OECD meeting in Paris. Mr McClay will travel to Riyadh to meet with counterparts from Saudi Arabia and the Gulf Cooperation Council (GCC). “New Zealand’s goods and services exports to the Gulf region ...1 week ago
- Education priorities focused on lifting achievementEducation Minister Erica Stanford has outlined six education priorities to deliver a world-leading education system that sets Kiwi kids up for future success. “I’m putting ambition, achievement and outcomes at the heart of our education system. I want every child to be inspired and engaged in their learning so they ...1 week ago
- Free school lunches: Year 7 students and above to shift to alternative model
A new interim delivery model will kick in next year to allow time for a full redesign of the scheme before any more money is dedicated. ...28 mins ago - Rafah ‘last place of safety’ in Gaza, UN aid boss warns
RNZ News As Israel presses ahead with strikes in Rafah and seizing the Rafah crossing from Egypt, aid agencies are sounding the alarm of a “catastrophic humanitarian situation”. Rafah was “significant” because it was the only part in Gaza that had not been terribly damaged by the conflict, United Nations ...32 mins ago - Foreign Affairs minister to lead Pacific delegationThe Foreign Affairs minister is heading on a five-stop Pacific tour, which he says will strengthen New Zealand's engagement in the region. ...39 mins ago
- Greens Call On Government To Keep Same-day Election Enrolment And Voting
On Radio New Zealand this morning, the Justice Minister stated the Government was considering ending election day enrolments. ...52 mins ago - Many people are feeling ecological grief. How can we help those whose work puts them at risk?Source: The Conversation (Au and NZ) – By Anna Cooke, Honorary Fellow, School of the Environment, The University of Queensland We feel ecological grief when we lose places, species or ecosystems we value and love. These losses are a growing threat to mental health and wellbeing globally. We all see ...1 hour ago
- Revitalizing Toronto’s downtown core after COVID-19 greatly benefits the city and the regionSource: The Conversation (Au and NZ) – By Shauna Brail, Associate Professor, Institute for Management & Innovation, University of Toronto A shift to hybrid and remote work continues to affect worker presence in Toronto’s downtown. (Shutterstock) Downtown Toronto, the core of Canada’s largest city, continues to reel from the lingering ...1 hour ago
- Government quiet on costs, building plan for Waikato prison expansionThe extra beds would take longer than the four-years covered in this week's budget announcement to deliver, the Corrections Minister told RNZ. ...2 hours ago
- Chief Electoral Officer Needs To Fall On His SwordResponding to an Auditor-General's report slamming failures in the administration of the 2023 General Election, Taxpayers’ Union Policy and Public Affairs Manager, James Ross, said: ...2 hours ago
- Government considers removing election day voter enrolmentJustice Minister Paul Goldsmith says very few countries allow it, and New Zealand should consider changing the rules. ...3 hours ago
- Beehive Need To Lead By ExampleThe Taxpayers’ Union says the Beehive need to lead by example, following reports of more than $50,000 spent upgrading video conferencing equipment and furniture in the Prime Minister’s office. Taxpayers’ Union Campaign Manager, Connor Molloy, ...3 hours ago
- The Spinoff Power List: 50 New Zealanders you need to know
An objective list of the 50 most powerful people in New Zealand, as judged by the Spinoff Editorial Board. It’s power list season, baby, and we want in on the action. Sure, there’s the rich list and the powerful “c-suite” list and the young people with power (hmmm) but here, ...4 hours ago - First Nations imprisonment is already at a record high. Unless government policy changes, it will on...Source: The Conversation (Au and NZ) – By Thalia Anthony, Professor of Law, University of Technology Sydney Shutterstock This article contains information on deaths in custody and the names of deceased people, and describes ongoing colonial violence towards Aboriginal and Torres Strait Islander people. First Nations people in Australia ...4 hours ago
- Martha isn’t Baby Reindeer’s biggest villain. So why is she painted as such?Source: The Conversation (Au and NZ) – By Alex Simpson, Senior Lecturer in Criminology, Macquarie University Netflix Baby Reindeer’s phenomenal success has much to do with its writer and lead, Richard Gadd, who plays Donny in a tender semi-autobiographical account of sexual abuse, harassment and stalking. Gadd’s story has ...4 hours ago
- Yes, adults can develop food allergies. Here are 4 types you need to know aboutSource: The Conversation (Au and NZ) – By Clare Collins, Laureate Professor in Nutrition and Dietetics, University of Newcastle KarolinaGrabowska/Pexels If you didn’t have food allergies as a child, is it possible to develop them as an adult? The short answer is yes. But the reasons why are much ...5 hours ago
- An outsider on the inside: how Ans Westra created New Zealand’s ‘national photo album’Source: The Conversation (Au and NZ) – By Paul Moon, Professor of History, Auckland University of Technology Ans Westra, self-portrait, c. 1963. National Library ref AWM-0705-F They try but invariably fail – those writers who believe they are capable of encapsulating in prose or verse the essence of ...5 hours ago
- How the lessons from Covid-19 could help us prepare for bird fluStewart Sowman-Lund looks at the growing concern around the world in this extract from The Bulletin. To receive The Bulletin in full each weekday, sign up here. What’s all this? When Covid-19 arrived on our shores in early 2020, some argued we were too slow, or crucially, ill-prepared for a pandemic. So ...6 hours ago
- As climate change amplifies urban flooding, here’s how communities can become ‘sponge cities’Source: The Conversation (Au and NZ) – By Franco Montalto, Professor of Civil, Architectural and Environmental Engineering and Director, Sustainable Water Resource Engineering Laboratory, Drexel University Water runs into a storm drain in a Los Angeles alley on Aug. 19, 2023, during Tropical Storm Hilary. Citizen of the Planet/Universal Images ...6 hours ago
- Genesis Energy to fire up coal imports, citing increased demand, dwindling gas supplyGenesis Energy is to resume importing coal, as reduced gas supplies and increased demand add to the problems of keeping the lights on. ...6 hours ago
- The Boy in the Water: ‘Someone was struggling at a fence’
The inquest into the death of Gore toddler Lachlan Jones has turned up a new witness who says he saw two teenagers and a small child in a high vis vest in the area where the boy’s body was found the day he died. Lachie’s body was discovered face up ...6 hours ago - Te Pāti Māori comments: 'That kind of language isn't helpful'Political parties have roundly criticised Te Pāti Māori for using words like 'extermination' and 'white supremacy' in the House. ...7 hours ago
- Mental Health Minister Matt Doocey sought advice on ‘social impact bonds’ to fund servicesMinisters have sought advice on 'social impact bonds', which offer a potential return on private investment in public services. ...8 hours ago
- Managed retreat: How do we get out of the way of climate change?"Ad hoc" house buyouts after major disasters cannot continue, the Climate Change Minister says. ...8 hours ago
- Rules for property managers are scrapped. But what’s the worst that could happen?Stories from the tenancy trenches, featuring spider infestations, cupboard rats and same-sex discrimination. Lucy’s brother was living in a damp 1930s building in Mt Eden where “he had to tie the cupboard doors closed so the rats didn’t get in”. Although he shared custody of his six-year-old son, his property ...8 hours ago
- Explainer: What’s the deal with Auckland’s new water deal?Simeon Brown, Chris Luxon, and Wayne Brown climbed into a hole and announced a plan to solve Auckland’s water woes. This is how it’ll work. New Zealand’s pipes are munted. They’re cracked and leaking, and struggling to handle all the extra poos excreted by our rising population. It’s a big, ...8 hours ago
- Newsroom daily quiz, Wednesday 8 MayLoading…(function(i,s,o,g,r,a,m){var ql=document.querySelectorAll('A,DIV,A[data-quiz],DIV[data-quiz]'); if(ql){if(ql.length){for(var k=0;k<ql.length;k++){ql[k].id='quiz-embed-'+k;ql[k].href="javascript:var i=document.getElementById('quiz-embed-"+k+"');try{qz.startQuiz(i)}catch(e){i.start=1;i.style.cursor='wait';i.style.opacity='0.5'};void(0);"}}};i['QP']=r;i[r]=i[r]||function(){(i[r].q=i[r].q||[]).push(arguments)},i[r].l=1*new Date();a=s.createElement(o),m=s.getElementsByTagName(o)[0];a.async=1;a.src=g;m.parentNode.insertBefore(a,m)})(window,document,'script','https://take.quiz-maker.com/3012/CDN/quiz-embed-v1.js','qp'); Got a good quiz question? Send Newsroom your questions. The post Newsroom daily quiz, Wednesday 8 May appeared first on Newsroom. ...8 hours ago
- ‘Think fast and act slowly’ is failing big projectsOpinion: ‘Reference-class forecasting’ is at the heart of improving pricing a project and identifying the expected timeframe but it doesn’t appear to be in use here The post ‘Think fast and act slowly’ is failing big projects appeared first on Newsroom. ...8 hours ago
- A controversial driving exam – put to the testWhat do a sombrero in Argentina and cognitive driving tests have in common? Don’t worry, we’re not setting up a bad joke. Hinengaro Clinic dementia clinician Gregory Winkelman has the answer on today’s episode of The Detail. “We ask a patient’s spouse or son or daughter: If you went to ...8 hours ago
- A long road back to a very long jumpWellington long jumper Phoebe Edwards is back and she’s having fun again. Until this year, Edwards, a top athlete in her teens, had never competed as a senior athlete in New Zealand. In March, the 26-year-old won a national long jump title in a lifetime best of 6.28m after ...8 hours ago
- Daily crossword, Wednesday 8 MayThe post Daily crossword, Wednesday 8 May appeared first on Newsroom. ...8 hours ago
- Persistent Green Party scandals delay caucus resetAfter replacing a fifth of their caucus in just four months, the Greens’ opportunity to reset, reshuffle and refocus on the Government is quickly slipping away The post Persistent Green Party scandals delay caucus reset appeared first on Newsroom. ...8 hours ago
- Coutts’ call prompts urgent board meeting over SailGPDespite Sir Russell Coutts vowing SailGP wouldn’t return to Whakaraupō/Lyttelton Harbour, negotiations over 2025 are ongoing The post Coutts’ call prompts urgent board meeting over SailGP appeared first on Newsroom. ...8 hours ago
- Meet the man behind the Government’s education policyThe parallels between the Government’s education policy and those put forward by researcher Michael Johnston, is raising questions The post Meet the man behind the Government’s education policy appeared first on Newsroom. ...8 hours ago
- ‘We didn’t behave very well in NZ’, says Wakefield heirI knew Taika Waititi quite well when he was a kid. His mother lived in a tall narrow house in Aro St, and my youngest sister had a similar house two doors along. They were both single mums, they each had a son aged seven. Taika and my nephew Stepan ...8 hours ago
- Govt risks another Havelock North by undoing water protectionsOpinion: “As time passes, knowledge of the circumstances of the August 2016 outbreak will fade and its immediate impact will be lost.” This statement is from the 2017 report of the Official Inquiry into the Havelock North campylobacteriosis outbreak. The then National-led government established the inquiry after the outbreak left ...8 hours ago
- Where to next for the Aukus ruckus?Opinion: Nicholas Khoo looks at two key points in the high-stakes foreign policy pact debate – and asks if NZ can engage with as little drama as possible. The post Where to next for the Aukus ruckus? appeared first on Newsroom. ...8 hours ago
- From Gallipoli to Gaza: remembering the Anzacs not as a ‘coming of age’ tale but as a lesson for...ANALYSIS: By Olli Hellmann, University of Waikato When New Zealanders commemorate Anzac Day today on April 25, it’s not only to honour the soldiers who lost their lives in World War I and subsequent conflicts, but also to mark a defining event for national identity. The battle of Gallipoli against ...11 hours ago
- NZ local council calls for immediate ceasefire in Gaza as strikes hitBy Robin Martin, RNZ News reporter A New Zealand local authority, Whanganui District Council, has passed a motion calling for an immediate ceasefire in Gaza, condemnation of all acts of violence and terror against civilians on both sides of the conflict and the immediate return of hostages. It comes as ...12 hours ago
- End this ‘cruel, barbaric use of force’ on Gaza – WILPF plea to NZAsia Pacific Report The Aotearoa chapter of the Women’s International league for Peace and Freedom (WILPF) has appealed to the New Zealand government to call out Israel over the “cruel and barbaric use of force” in Gaza and demand a permanent ceasefire. The league’s open letter was sent to Prime ...12 hours ago
- Albanese government to invest $566 million for ‘generational’ mapping to promote resource explor...Source: The Conversation (Au and NZ) – By Michelle Grattan, Professorial Fellow, University of Canberra The Albanese government will invest $566 million over a decade on data, maps and other tools to promote exploration and development in Australia’s resources industry. The project will fund “the first comprehensive map of what’s ...12 hours ago
- Prison spending: Waikeria to have capacity for nearly 2000 bedsThe government has clarified just how many beds the Waikato prison will get after a series of maths gaffes - 455, 600, 810 or 1865? ...14 hours ago
- ‘Repair colonial violence’ and support Gaza ceasefire, say Otago academicsAsia Pacific Report Following an open letter by Auckland University academics speaking out in support of their students’ right to protest against the genocidal Israeli war on Gaza, a group of academics at Otago University have today also called on New Zealand academic institutions to “repair colonial violence” and end ...16 hours ago
- Expelling students for bad behaviour seems like the obvious solution, but is it really a good idea?Source: The Conversation (Au and NZ) – By Linda J. Graham, Professor and Director of the Centre for Inclusive Education, Queensland University of Technology Ryan Tauss/ Unsplash, CC BY Two male students have been expelled from a Melbourne private school for their involvement in a list ranking female students. ...16 hours ago
- Green MP Julie Anne Genter responds after behaviour in the House, florist's accusations"I can do better," she says, acknowledging the need to work on her de-escalation strategy. ...17 hours ago
- If the RBA’s right, interest rates may not fall for another year. Here’s why – and what it mea...Source: The Conversation (Au and NZ) – By Peter Martin, Visiting Fellow, Crawford School of Public Policy, Australian National University The Reserve Bank is now assuming Australians will see no interest rate cuts this year – and quite possibly none before the next federal election, due next May. That’s ...17 hours ago
- ‘Eye watering’ spending, growing debt make up surprisingly generous Victorian state budgetSource: The Conversation (Au and NZ) – By David Hayward, Emeritus Professor of Public Policy, RMIT University The Victorian budget offered more of the same on Tuesday, with the only change being how the budget papers were packaged. The usual shrink wrap was gone, hinting at savings in the pages ...17 hours ago
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Wasnt the situation the Same for the PPP for the Holiday Highway project north of Auckland , Fletchers were the main contractor partner but its was turning out to be an expensive mistake for them (like a lot of their other big jobs.)
This was 2018
https://www.newsroom.co.nz/2018/04/17/105267/more-bad-news-as-fletcher-plans-750m-raising-asset-sales
In a real world , the contractor losing money is only a problem for the PPP partners including the financial backers, who have a very long term out look.
One thing made me smile about Transmission Gulley , was the comment of one commuter 'who had sold up and moved to Otaki on the prospect of a quicker run on the motorway driving into Wellington'. This is exactly why these sorts of projects dont stack up as commuters move further out negating the 'saving time cost benefit' in BCR
Here's the Treasury sales weasel snow job on how PPPs are supposed to work.
The Greater Auckland piece linked below includes a good graph on how the payments are supposed to work. (h/t Ad)
https://www.greaterauckland.org.nz/2020/05/06/times-up-for-ppps/
Maybe the devil was in this not so little detail:
Maybe someone decided that the road was never going to go the distance and the potential maintenance costs were going to blow any potential profit into the weeds.
25 years uninterrupted use and access on a fault line with a major event return period of, shall we say, Wellington, is bodaciously bold.
PPPs nothing more than a pointless accounting trick that fools nobody….the problem is we have reduced state capability so much over the decades we have almost removed alternatives.
It doesn't look like a pointless accounting trick to me.
It looks like a very successful accounting trick to transfer more public money to private interests in a hidden fashion while allowing devious weasel politicians to lie that they've improved the country's financial situation through innovative financing of major projects.
Reduced state capability is a separate issue to PPPs. Getting rid of PPPs and going back to old-skool procurement of paying private contractors for a project as its built would give much better outcomes by improving transparency on how much it really costs and possibly get pollies to think a bit harder about which projects actually deliver value.
Its a pointless accounting trick in terms of the justification used for it…..reduced gov debt.
Reduced state capability is not separate issue to PPPs….that lack of capability directly impacts the governments ability to assess any proposal, any design, and any costings….not to mention quality control and oversight once contract is awarded, PPP or not.
Egg Zachary, best siphon ever.
Subsidizing donors of the National Party kick backs and graft.
You might very well think that, I couldnt possibly comment
You've been watching "House of Cards"!!
Bring back the Ministry of Works
Yes…except to rediscover that which was lost will take many years…the problem is sadly more immediate
The Ministry of Transport Value For Money composting unit is going to sprout the stinkiest shitflower bouquet delivered for the Minister of Transport to clasp to his electoral chest.
Betcha the new Infrastructure Commission runs a mile from the ppp turdblossoms that many in there advocated nurturing.
I smell High Court for damages against NZTA on Transmission Gully, and High Court for Judicial Review against the Minister for light rail.
No problem. Twyford will just bang a few heads together, everyone involved will gulp & get things back on track. In an alternate universe.
It's also possible there’s a taniwha hidden there, and the local Maori haven't noticed. Te Ara says they have lairs in "pools, caves, or dangerous waterways". Any of those in the gully? If it got word of how successful its colleague was in the Waikato it may be using the same strategy.
Why are you mocking Māori culture and beliefs?
Didn't realise I was, actually. `Tis true that I've always been non-pc tho, so it wouldn't surprise me at all. Did you notice that I was mocking Twyford? Perhaps you think it's okay to mock some folk & not others??
Being non-PC =/= mockery.
It usually just means disrespectful of social groups with less power. Nothing brave there.
What's the liability of the ceo and board when things are managed so incompetently? Is it fraud to use materials of lower quality than specified for instance?
You seem to be mistaken , the CEO and Board of NZTA are hands off , the design , construction and financing is in the hands of the PPP
" The contract will see WGP design, build and finance the project, as well as operate and maintain the road for 25 years after the expected five-year build finishes in 2020.
The Wellington Gateway Partnership consists of:
While that's true in theory Duke, if Transmission Gully does go tits up, the restructures inside NZTA will come thick and fast. It's the public service way.
I meant the ceo and board of each of the private 'partners'.
I imagine that the Nat administration treated this project like they did Novapay — by ignoring quality concerns, cutting corners, slashing key public servants, pressuring management to hit unrealistic deadlines. Result: burned out staff, half-arsed job, waste of public money, endless litigation
And National are whining about the Transmission Gully outcome, having set up the fiasco in the first place. Another example of 'free market' failure.
FFS, re-establsh the Ministry of Works & just bloody get on with it!
Where was the government oversight on this project? This should not be a surprise to the Ministry of Transport. They should be all over this.
You'd better blame the Minister of Transport in the last National Government. If the new motorway had been built by a government agency like the Ministry of Works, there would have been constant 'government oversight', completion by due date, no sub standard road surface & no suing of the NZTA.
Key & English sabotaged the public sector with their destructive scorched earth policies so that Bill could deliver a fake "surplus"
SSC: Four whistleblowers at the Ministry of Transport suffered 'humiliating' reprisals, deserve compensation (2017)
Scoop: PSA concerned about proposed job cuts at SSC (2009)
Stuff: More than 2000 public servants have lost their jobs since National took office (2011)
Right questions.
But your target should be Treasury since they conduct the Value For Money and Gateway Review reports.
The scale of the failure in both monetary and project terms demands a Ministerial inquiry at least.
The problem with PPPs is that government relinquishes oversight in favour of 'market' incentives delivering the same result. Quality standards are negotiated into the initial contract (and as others have said, are subsequently lawyered throughout). The financiers in the consortium are meant to apply discipline on the builders.
There is silence from the national self entitled politicos about this debacle. I wonder why?
Whose idea was it for ppp?
Simon has some bridges to cross.
Some in Labour also favour PPPs. This is not a partisan thing, more of a neoliberal one.
Because it's nothing to do with the PPP as to why this has gone to shit.
Sure.
Have I got a bridge to sell you!
its mostly weather related. look into it
Contractors that didn't realise there is such a thing as weather.
Give me a break!
They underbid to get the contract, knowing that the dimwits in the National Government and NZTA, would pay for the overruns.
PPPs are very popular with global financiers and their lackeys in the ratings agencies. That's who this sort of rort is designed to suck up to, in exchange for letting us borrow so much beyond our means.
Going by the rest of the big roading and infrastructure projects, an increase in cost by 20% does not seem so extraordinary. The CRL has just about doubled price in the last four years. Most of the other big projects have cost overruns in the order of 20% and take at least a year longer to complete. For instance the southern motorway has taken more than 2 extra years to complete. A lot of them have do over work.
The PPP aspect does not seem to be the problem, rather New Zealand contractors have generally not had sufficient experience to properly manage and cost projects of this scale. They have had to learn on the way. And the longer a project takes, the more it is affected by things such as increased cost of materials and increased wage costs.
As I recall (and I am old enough to do so) the MoW was beset by these kinds of issues as well. Over time it got worse rather than better, so that by the 1980's the MOW was the byword for inefficiency.
It's not led by local contractors. They are in the mix but not the leads.
I'm mulling a post about this romantic notion of bringing back the Ministry of Works.
The private construction sector in NZ hasn't exactly covered itself in glory. Leaky homes, corporate collapses, cosy cartels, crappy materials, lowball quotes followed by doubling the price later down the road.
A few shareholders are laughing while subbies and muggins taxpayers are left with a mess to clean up.
NZ to too small for some markets to operate properly, hence the need for proper state oversight or even ownership. The Rogernomics notion of private sector efficiency is a shoddy scam exploited by grifters
There are no shareholders laughing now at anything. Even our largest remaining construction corporations have been brought low.
It was the private construction sector that built all those state houses you still see around the place in the 1940s and 1950s. The state specified them.
Lowball quotes are generated by the entire public sector preferring the "lowest cost conforming" bid for decades. That's the fault of the public sector, and that's still the case mostly. There's a big Construction Accord in place trying to shift these past sins.
The public client binds itself in the same jam with respect to quality and price: everyone wants to go to heaven, but no one wants to die.
Glad to hear the public sector is re-thinking its approach. The cost cutting mentality costs lives. e.g. Cave Creek tragedy
Lowball quotes are generated by the entire public sector preferring the "lowest cost conforming" bid for decades.
I remember getting a RFI over my desk from a district council for an upgrade and consolidation of their existing water supply control system. Now most council staff had the wit to try and minimise the different generations of equipment and vendors they used … but these guys (and I recall counting them with incredulity) had no fewer than 34 different and mostly incompatible platforms.
All installed by the contractor who'd made the biggest fuckup on price that day.
We looked at it closely, talked to the client, decided their lowest price mentality hadn't changed much … and figured we didn't have a barge pole long enough to touch this one with. Sure enough one of our competitors went on to lose a satisfyingly large sum of money pursuing it.
About a decade later my successor went in and cleaned up nicely … but only after certain senior council staff underwent radical face transplants.
The CRL hasn’t just about doubled costs actually. The 2014 estimate was 3.4 billion dollars. That’s increased to 4.4 billion by last year. Almost all that increase is due to the common sense decision to lengthen the platforms at the new stations to accommodate longer trains and provide an alternative entry for K Rd station at Beresford Sq. These were included in the original designs for the line but were stripped out at the insistence of the National govt when they finally agreed to allow the project to progress. Typical National penny pinching a la the Harbour Bridge design shortfalls. The CRL, alone, of all the big projects underway is actually pretty much being delivered on its time line and within its budget.
The cost figures bandied about by the previous govt for CRL were all in future dollars whereas the roading ones were not. Never a level playing field and no agencies resisted the lying.
The revised design also drops out the station at Eden Terrace on the grounds of costs. Yes, stations have lengthened, but a whole station (1 of 3 underground stations) was dropped.
There is no way it is being delivered on the original time line. It was originally going to be built by 2021/22, and by that I mean after work started in 2016. Now that is more like 2024/25. They have not even built and delivered into NZ the tunnel boring machine.
The Mt Eden Station replaces the former Eden Terrace one a few hundred metres away. That design change was ages ago. However the delays in starting were caused by the government of which you were part. Only lobbying by business interests overturned Joyce, Brownlee and English’s resistance.
Sacha,
You are mixing up the timing of the original decision to proceed with the CRL with the delays once the contract was commenced.
Yes, it took time for National to be convinced that the CRL was a good idea. The government formally agreed with the Auckland Council to go ahead with the CRL around 2014. The agreement with the Council meant the govt would pay 50%.
The construction contracts were completed around 2015 and work started in 2016. It was expected to take 5 years to do the whole job. Instead it will take a minimum of 8. I personally think it will take 10 years, given that the boring machine has yet to be delivered to NZ.
What do you think that the Albert St retailers have been complaining about? It is the fact they have had to suffer disruption for twice as long as they were originally told. As a consequence some of them went broke.
More than enough information here for anyone unfamiliar with the project's history: https://www.greaterauckland.org.nz/?s=CRL
This post in particular might refresh memories of the shennanigans that led to big delays: https://www.greaterauckland.org.nz/2019/02/25/crl-should-be-mostly-built-by-now/
And the Albert St retailers have been treated horribly throughout. I believe all disruptive projects should have proper mitigation costs built into their budgets.
Even a cursory Google this morning, showed up the myriads of problems with PPP, projects all around the world.
Some of the worst, have been with contractors who were, supposedly, experienced, like Serco in the UK.
Almost all PPP, projects have ended up costing more than other models.
In New Zealand, we also have the issue of lack of skills and competency in the State agencies managing it. With the deliberate, " shrinking of the State sector" in years of privatisation mania.
The MOW, may have been famous for shovel leaners. But now we have simply transferred the inefficiency to invisible ticket clippers, in back offices.
And the famous shovel leaners of the MOW will be there for all those shovel-ready projects – as if it's been decreed, cometh the need, cometh the deed.
The MOW, may have been famous for shovel leaners. But now we have simply transferred the inefficiency to invisible ticket clippers, in back offices.
Which hits the nail on the head. Everyone agreed socialism had discredited itself via bureaucratic bungling & bloating back then. Now everyone will be obliged to agree that the alternative we switched to has failed due to the various reasons given (bureaucratic bungling being the common factor).
Caveat: someone may be able to identify ppp models that have actually worked according to plan. Analysis must then identify the factors present that weren't in the other models – if we are to proceed with usage confidently by means of trial & error.
Haha, right Wayne good try- the neolib / PPP / LATE / privatisation stuff was meant to be, according to the RW rhetoric, significantly better, not as bad as it used to be under the ol' MOW. If there was ever any public value in adding private profits on top of the cost of public works, it was to be that PPPs were able to give price certainty, efficiency, and risk management.
Now you are defending this disaster by desperately calling equivalence with the ol' days!
Rational dissonance!
Can you trust the private sector to not attempt to enrich themselves by cutting corners wherever possible? Probably not. ("It's not enough that we're being paid millions of dollars to do something! We'll use cheap labour and substandard materials to do it, because… money!") If the profit motive is their only real consideration, as opposed to, you know, building a decent fucking road for the taxpayers of the nation to drive on… then yeah, that seems to be a problem right out of the gate. The ONLY thing you can trust the private sector to do in situations like this, is to make a ton of money for themselves. It's pretty much their sole reason for being.
If you want the work done you haven't got any choice.
We make 5-6% margin if we're lucky on the big jobs if we're lucky, which is a couple of points above inflation.
And no, profit isn't the only consideration, but it comes in handy if you want to get paid.
Damn. The Herald published this at 6:15 pm today (26 May)
Almost 100 redundancies proposed at Transmission Gully