Health centre price blowout
‘‘We all know estimates aren’t a precise science but this reported blowout, $3 million on a $7.5m project, is beyond absurd.’’ Chris Mitson
A blowout in the estimated cost of building the new Golden Bay Integrated Family Health Centre will see the construction start date pushed back.
The health centre is in discussion with a preferred tenderer but the process has halted due to cost savings being closely evaluated. Construction had been due to start last month.
Chris Hill, chairwoman of the Golden Bay Community Health Te Hauora O Mohua Trust, said two of the tenders were close in price but both were higher than the quantity surveyor’s estimated cost.
The project team was working to find ways to bridge the gap between the estimate and the preferred tender pricing, she said.
The new facility will centralise existing medical care, maternity services and rest home support for the elderly, 3km outside Takaka.
It has been previously reported that the overall cost of the project would be $7.6 million, most of which would be covered by a $5m loan. The remaining funds will come from an interest-free loan from the Nelson Marlborough District Health Board and a further $800,000 from the Golden Bay community.
However, the Nelson Mail has been told that the tenders were in the region of $10m to $11m.
Ms Hill declined to comment on that, referring only to the trust’s statement saying: ‘‘ We are disappointed that this problem has arisen but we remain confident the financial issues can be resolved.’’
A contract would not be committed to until the pricing was affordable and construction would begin as soon as that stage was complete, the trust said.
Joan Whiting Rest Home residents would move into the new centre, and the Joan Whiting Trust chairman Chris Mitson said if those figures were correct, it was very disturbing.
‘‘We all know estimates aren’t a precise science but this reported blowout, $3m on a $7.5m project, is beyond absurd. If that’s the situation, is the DHB going to bail the project out or the Ministry of Health?
‘‘If these reports are true, this is incredibly disturbing for the Joan Whiting Rest Home and the future of care of the elderly in Golden Bay.’’
The rest home supports the health care centre, which will ensure rest home facilities are able to continue in the Golden Bay area.
However, it had previously withdrawn from active participation after there was a major change in plans with little or no consultation.
The rest home receives a subsidy of $12,000 a month from the Ministry of Health to continue functioning until the health care centre is running.
Mr Mitson said he questioned what would happen to those funds if the project was in trouble.
‘‘How long will that continue if the integrated health centre project is just a financial fantasy? How happy is the community about fundraising for a project where the budget presented to the community apparently bears no resemblance to reality?
‘‘That’s very worrying for the Joan Whiting trustees. We’re running the only rest home facility in Golden Bay on a hand-to-mouth basis, and these reports are hugely discouraging.’’
Golden Bay resident Liza Eastman, who has been vocal in her concerns about the project, said this was a disastrous delay.
‘‘It’s not just another hold up; it’s an extreme worry about the type of money that’s going into this building.’’
She said she was uncomfortable about the amount of money already spent on the design ‘‘that we don’t think is as good as it could have or should have been’’.
‘‘This is our tax money for health provision going down the drain. Meanwhile, conditions at the medical centre are far from ideal. What we need is a new medical centre in the township where the people want it. Our elderly should continue to have the option to stay at Joan Whiting, and have the cost of its comfortable, quiet, caring care covered properly and honestly by the district health board and our tax money.’’