The site was being used as a car park after the previous building there was deemed at risk of collapse in the wake of the 2016 Kaikōura earthquake and had to be demolished.
MetService has 300 full-time staff and is a state-owned enterprise which means its two shareholders are the Finance Minister and Minister for State-Owned Enterprises.
A Treasury report from August last year shows the previous Government was asked to approve the move to Molesworth St as the future head office for MetService and the National Forecast Centre.
The report was released to the Herald under the Official Information Act.
Entering into the lease was considered a major transaction because the total cost, including depreciation, was forecast to be more than half of MetService’s total assets of $48.9m. The exact cost was redacted.
Minister for State-Owned Enterprises Paul Goldsmith confirmed the previous Government approved the major transaction.
“In January 2022, MetService relocated from its Kelburn building due to the cost and extent of the seismic strengthening required, and moved its head office and the National Forecast Centre into its current temporary premises.”
MetService will join the Ministry of Foreign Affairs and Trade in a 24,000-square-metre office building that is taking shape at 61 Molesworth St. Photo / Mark Mitchell
MetService’s temporary office space is at Seabridge House on Featherston St.
In September 2021 the estimated cost of strengthening and other works was $16.7m, which jumped to $19.6m by November of that year.
There was no final calculated figure for construction because the costs were increasing at such a rate that a reliable final cost could not be calculated.
MetService chief financial officer Keith Hilligan was pleased the Government had approved the 15-year lease at Molesworth St to go ahead from 2025.
“It enables our future move from our temporary accommodation to a resilient, sustainable and fit-for-purpose home for MetService’s National Forecast Centre and head office.”
For many years governments have ignored rising concerns about Crown Research Institute Niwa’s self-approved intrusion into MetService’s forecasting patch, and the potential confusion for the public during life-threatening weather events such as Cyclone Gabrielle.
The review was announced about eight months after an irritated MetService pulled out of a Ministry of Business, Innovation and Employment-commissioned project whose panel recommended MetService move in with Niwa at Greta Point as part of a proposed national centre for oceans, climate and hazard research - one of three science hubs in the former Government’s $450m “Science City” project.
The review will deal with the double-up of the publicly-owned organisations and will determine the best system to handle extreme weather predictions. It will also consider how to improve access for private forecasters and the public to currently restricted weather data.
The Treasury report said any potential structural changes would likely take some time to put in place.
“The Treasury’s view is that it is important that MetService secures office accommodation to provide longer-term certainty for its staff.
“It is unlikely the development at Greta Point will be completed before 2030 and there are options available to MetService if it wishes to vacate the premises prior to the end of the initial 15-year term in 2040, such as subletting the space.”
In a statement to the Herald, Treasury said the review was progressing well but was yet to be completed.
“It is anticipated that on completion of the review, a report will be finalised by the end of April 2024 and advice provided to the Government in May 2024.”
Georgina Campbell is a Wellington-based reporter who has a particular interest in local government, transport, and seismic issues. She joined the Herald in 2019 after working as a broadcast journalist.
