Transport Rebuild East Coast (Trec) financial issue alarms contractors

Talk of the money running out turns out to have been a result of a miscommunication from Transport Rebuild East Coast.

Alarm expressed earlier this week that recovery works by Transport Rebuild East Coast would be on hold for a month because “the money had run out” has proved to be a case of miscommunication by Trec.

One contractor employed by Trec told the Gisborne Herald yesterday he would have to lay off a couple of dozen staff until July 1.

“We were told they had run out of money this current financial year to the end of June,” he said.

In response to the news, Gisborne Mayor Rehette Stoltz organised an urgent online meeting with the mayors of Wairoa and Napier, Hawke’s Bay Regional Council and local Government MPs for today to discuss the issue.

“We have had several issues with Trec raised with us over an extended period, and you will be aware that Trec instructed several contractors today [Wednesday] to immediately stop work,” was in an email Stoltz sent to East Coast MP Dana Kirkpatrick and Napier MP Katie Nimon.

The Trec Alliance is a partnership between Waka Kotahi and KiwiRail with construction firms Downer, Fulton Hogan and Higgins.

Kirkpatrick told the Gisborne Herald yesterday that she had been speaking out about Trec for months now.

“I’ve been asking questions about the amount of work being given to local businesses, the percentage of the money being allocated to actually getting roads fixed, the procurement process and the general size of the Trec organisation.

“They have 650 employees, significant leased buildings in Gisborne and the overheads including flights in and out of the region, accommodation and backroom staff – all money I would like to see getting our roads fixed.

“Katie [Nimon] and I were made aware on Thursday that a meeting had been called by representatives of Trec where it was communicated that 16 crews in our region would have to stop work,” Kirkpatrick said.

“We were straight on to officials to find out what was happening.

“From what we can ascertain, this messaging was completely wrong and has caused undue stress.

“Trec recovery works are continuing,” she said.

“It is our view that this was a poorly constructed communication exercise which has caught everyone by surprise.

“Trec should clarify the position with the contractors immediately and they should also examine their attitude towards local contractors which, from what I have seen over the past few months, has been cavalier at best and in some cases disrespectful,” Kirkpatrick said.

“It is fair to say that at this time of the year maintenance contracts can have run out, but with the recovery works included there should definitely have been enough work and money to see these crews through till the end of the financial year ... and if there isn’t then that raises questions about contract management, financial management, overheads and costs.

“I have met with Trec and NZTA [NZ Transport Agency] on a number of occasions and told them squarely – the future of our region is in your hands. It is imperative that we keep our local businesses alive and in work.

“We need our local businesses to continue to be enduring and sustainable because when Trec sails out of town, we need our businesses to still be here employing people, sponsoring communities and getting work done.

“We will meet with the mayors across the region on Friday and discuss this further.”

The Gisborne District Council’s community lifelines director, Tim Barry, says this does not affect the council’s operations and maintenance work on local roads.

Trec was approached for comment but when the Gisborne Herald went to print last night no response had been received.