Too much spent on iwi consultation for prison, report finds

1.00pm

A report into iwi consultation for the Spring Hill prison confirms the fears of Corrections Minister Paul Swain that expenditure was excessive.

The Corrections Department last month defended its $1.3 million bill for iwi consultation on the prison, near Meremere in the north Waikato.

The report says the actual expenditure was $1.5 million over seven years, and that was out of line with planned prisons in Northland, South Auckland and Otago.

Corrections Department chief executive Mark Byers has advised his senior managers to in future ensure matters involving taxpayer money could face the highest test of public scrutiny.

"There are lessons to come out of this and it is important that in future the robust systems the department already has in place are adhered to," Mr Swain said.

The report, released this morning, found:

* the costs incurred relative to benefits gained for some contracts were too high;

* too many people doing similar work at times early in the project. Some of this could have been more cost-effectively done in-house, or by a smaller number of tighter assignments;

* more reference checking should have been made into independent contractor Tommy Moana, who should have been stood down from the project once the department knew in 2001 that he faced unrelated fraud charges;

* the contract with Jagcon Ltd for project management of the wider regional prisons project should have been tendered, even though it was delivered to a higher standard, and proved value for money;

* $1.5 million was spent from 1997-2003.

ACT MP Rodney Hide, who revealed the consultation spending in Parliament, told NZPA the report confirmed his view that the department bought Maori support for the prison.

"I was sadly right; the Government has had to do what private developers are now having to do -- pay over the top for iwi consultation in order to get resource consent," he said.

"The real mischief here is the Resource Management Act, which should be radically amended to prevent such extortion."

Mr Swain said consultation was required under the Resource Management Act (RMA).

Given that the prison was a $250 million project, the process was always going to be a major undertaking.

He said his department had learned lessons from its management of the issue.

An Environment Court hearing next month would test whether the consultation process was properly done.

A copy of the report has been sent to the Auditor General, Race Relations Minister Trevor Mallard and Associate Environment Minister David Benson-Pope.

Mr Byers has told Mr Swain he would ensure management of the prison contracts would be tightened.

"The department's approach will be crucial, given the importance of maintaining a long-term relationship with Tainui and other groups in the community, as we attempt to reduce reoffending once inmates leave prison."

Mr Moana was paid more than $130,000 for advice as part of the department's $1.5 million bill for iwi consultation on the prison.

In 2002, Mr Moana admitted 53 charges of using and altering documents with intent to defraud the disbanded Maori Health Commission of nearly $17,000.

The prison initially had a budget of $184 million but that has blown out to about $250 million.

Over four years, $875,000 was spent on procurement of services and $438,000 on 48 marae hui and other meetings.

Figures in the report showed that since 1997-1998 $1,508,113 had been spent on "delivery of cultural advice and services" for Spring Hill Prison.

Of that Waikato Rauptu Lands topped the list with $524,109.

Ngati Naho Co-operative Society was next highest paid, with $202,564.

Iwi consultation on the controversial Northland prison has so far totalled $776,535.

For Auckland Women's Prison the figure is $157,536, while for Otago Prison it has reached $57,273.

- NZPA