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Home / New Zealand

$17.4m blowout confirmed

Bernard Orsman
By Bernard Orsman
Auckland Reporter·
11 Jul, 2007 05:00 PM3 mins to read

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Costs for the Queen St upgrade will double to $43.5 million. Photo/ Dean Purcell

Costs for the Queen St upgrade will double to $43.5 million. Photo/ Dean Purcell

KEY POINTS:

The full extent of cost blowouts on the troubled Queen St upgrade and four other central city projects confirm officers are seeking an extra $17.4 million for urban design improvements, as revealed by the Herald yesterday.

After senior officers included the extra costs in a "confidential" report to
councillors, Mayor Dick Hubbard yesterday asked them to publicly release the figures.

He was responding to Herald inquiries and comments by mayoral candidate John Banks that the public had a right to know how their rates were being spent and claims of too many confidential meetings under the council.

The figures show rising costs and urban design improvements to five projects still to be started have risen from $26.2 million to $43.6 million, including $3.27 million for contingencies. This has taken the cost of the central city upgrade to $167 million.

The biggest increases cover the upgrade of St Patrick's Square, from $4.8 million to $7.82 million, and Albert St, from $8.1 million to $14.5 million.

The increased budget for St Patrick's Square includes higher quality paving to reflect the cultural, religious and historical significance of the square and $548,000 to light the Catholic cathedral if private funding cannot be found.

The extra costs for Albert St relate to better pedestrian safety and services, more lighting, trees and street furniture.

Officers have also recommended increasing the budget for the last stage of Queen St, from Mayoral Drive to Karangahape Rd from $3.5 million to $5.9 million for wider footpaths and other improvements.

If approved, this will take the overall cost of upgrading Queen St to $43.5 million. This is nearly double the original $23.4 million budget.

Mr Hubbard said he had asked that the rising project costs contained in a confidential report to be included in the open agenda for tomorrow's urban strategy and governance committee meeting.

There was only a small section in the confidential report relating to a commercially sensitive contract that needed to stay confidential, he said.

Mr Hubbard, who promised openness, transparency and accountability when he became mayor nearly three years ago, said in future he would ask officers to make information public that was not commercially sensitive.

Acting council chief executive Trish Langridge refused to answer questions about the actions of senior officers and whether she agreed with Mr Hubbard that the costings should be made public.

Planning general manager John Duthie, one of the officers to approve the report, said it covered contract negotiations and variations that were always handled behind closed doors.

He released a copy of a report to the CBD board with the rising project costs. The report is marked "open" but has not been made public and could not be found on the council website.

Mr Duthie said in hindsight the CBD material could have been put on the open committee agenda.

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