Scandal as project ends on time and under cost
There were bitter recriminations at last night’s Wellington City Council meeting as councillors debated the latest budget figures. The cause was the new Kevin Lavery Footpath in Strathmore, a 200-metre concrete pedestrian way linking a disused car park and an unused cycle lane.
Councillors were appalled to find out that the $2.3 million project, expected to be completed by September, was finished in late June and cost only $1.9m. ‘‘This is typical of this new leadership,’’ said councillor Fleur Fitzsimons, kaihautu¯ of the Justin Lester Memorial Committee. ‘‘How can we possibly plan for the future if projects cost less than expected and finish before they’re meant to? Now a whole lot of people who would usually deal with cost overruns are in danger of losing their jobs.’’
Tiamana of the committee Jill Day felt the same way. ‘’This never would have happened under the previous leadership.’’
Her former boss agreed. ‘‘The Town Hall strengthening went from $46m in 2012 to $112m in 2019,’’ said Lester. ‘‘You’ve got to give me credit for much of that. Mayor Foster wouldn’t know a budget blowout if it bit him on the backside.’’
But Mayor Andy Foster strongly disagreed. Speaking from behind a mossy rock at the opening of Wellington Zoo’s new Rarely Seen Animals enclosure, he said: ‘‘Only last week, it was revealed that a $10m project at Frank Kitts Park blew out to $30m in less than two years.
‘‘Who was in charge when that happened? You’re looking at him! And don’t forget I was chair of the transport committee when the Island Bay cycleway was going to cost only $1m and would be completed while Celia Wade-Brown was mayor.’’
Wade-Brown was also disparaging about the present council. ‘‘Back in 2015, I said that the convention centre would cost $134.4m and would be open by 2018. That gave everyone certainty – they were certain it wouldn’t open when I said it would. Contractors, builders, architects, insurers, business case writers and planners had plenty of time to prepare to build it at a budget of nearly double sometime in the 2020s.’’
The cause of the latest budget blow-in is believed to a newly appointed council staffer. Councillors were appalled to learn that the officer in question moved swiftly on the project, carried out limited consultation, hired a small, reliable New Zealand-owned company directly to do the job, and included tough financial penalties in the contract if key deliverables were not met.
‘‘I know how these devious guys operate,’’ explained former deputy mayor Paul Eagle. ‘‘They tell you it’s going to cost more than expected and be late, and everyone’s happy. Then they go behind your back and get the job done without your knowledge. The next thing you know the footpath’s opened, there’s money left over, and the poor old councillors have to deal with it.’’
Councillor Dr Jenny Condie was similarly appalled. ‘‘There was no process, no business case, no report on how and why spending would skyrocket. A council officer selfishly managed the entire process themselves and got the job done on time and under budget.
‘‘This is not best Wellington City Council practice and exists in none of our written documentation. We should have given this job to the New Zealand Transport Agency to complete. That way, the budget would have doubled, and the footpath would still be at the consultation process.’’
Arts portfolio leader Nicola Young reminded councillors that budget blowouts have been an important part of Wellington’s proud history. ‘‘They occur in every term and are as much part of this city’s historic DNA as Gay Pride Week, St Mary of the Angels and the Kate Sheppard traffic lights. I think we should change Wellington’s official song to Hey Big Spender.’’ Other councillors thought Up, Up and Away would be accurate.
Foster said he needed time to deal with the budget blow-in because it was the first time it had happened during his nearly three decades on the council. He admitted that asking central government for a bail-in – where the council gives excess money back – was an option.
Even though the footpath is in Strathmore, Eastern ward councillors were reluctant to comment. ‘‘In the interests of getting re-elected, we tend not to directly comment on any issues affecting the Eastern ward, such as Shelly Bay, the airport extension or this footpath,’’ said an Eastern ward councillor who asked not to be named.
But all is not lost. The completed footpath still needs a final safety check to be certified.
‘‘We’ve got these blokes from Germany we’re going to fly over to check the footpath drains,’’ leaked a top Wellington Water official. ‘‘By the time you add up airfares, hotels and quarantine, we’re confident that we’ll be looking at a budget blowout come December – so everyone can relax.’’