Power Simon: Questions for Oral Answer — Questions to Ministers 
Power Simon: Questions for Oral Answer — Questions to Ministers 
[Volume:640;Page:10680] 
5.  
SIMON POWER (National—Rangitikei) 
 to the  
Minister of Corrections 
: Does he have confidence in his department; if so why? 
Hon DAMIEN O'CONNOR (Minister of Corrections) 
: 
 Yes but the chief executive understands that he is responsible for continuing to make improvements with clear lines of accountability across the whole department. 
Simon Power 
: Can the Minister confirm that under the untested collaborative working arrangements adopted by his department the indicative or target costs of the new regional prisons were not agreed to until after construction began which was 17 months later in the case of the Otago Region Corrections Facility 20 months for the Spring Hill Corrections Facility and not until 3 years after earthworks started at the Auckland Region Women’s Corrections Facility? 
Hon DAMIEN O'CONNOR 
: I am not familiar with all the details around the collaborative working arrangements. I know that mistakes were made in the set-up of those arrangements. However investigations into those projects clearly identify that without the collaborative working arrangements they would not have been completed on time and it was concluded they were done in a manner of integrity and full accountability. 
Simon Power 
: Can the Minister confirm the contents of a letter from Audit New Zealand to Barry Matthews dated 31 August 2006 that revealed that his department handed over $471 million of taxpayers’ money or over 60 percent of the total spend on the new prisons before those target costs were even agreed to? 
Hon DAMIEN O'CONNOR 
: I am not familiar with that particular letter. But the whole process of collaborative working arrangements in regard to two projects with the Regional Prisons Development Project had been thoroughly investigated. Although it was acknowledged that the costs were far greater than originally predicted in fact the target number of prison cells built was far greater than that originally laid down. 
Simon Power 
: Does the Minister understand the statement made in the State Services Commission investigation into cost overruns in prison construction which says that until the indicative costs are agreed the contractors are “effectively reimbursed according to cost.” and that the Government does not have a final assurance that the estimated costs represent an “efficient level of costs.”; if so can he now give the taxpayers of New Zealand an assurance that they were not gouged for $471 million? 
Hon DAMIEN O'CONNOR 
: That member makes outrageous allegations as he has in this House time and time again. That whole construction project worth over $1.2 billion in total construction across the corrections system has been thoroughly investigated by Audit New Zealand and although the costs are more than we would have liked there are no major concerns with expenditure in that area. 
Simon Power 
: Does the Minister stand by his previous statements that the use of collaborative working arrangements for building prisons is “the best way forward” and is “appropriate for the nature and scale of the project”; if so why did his department inform the select committee that in the case of any potential redevelopment of Mount Eden Prison a decision has been made not to use collaborative working arrangements? 
Hon DAMIEN O'CONNOR 
: I do stand by my statements and reports into the projects and collaborative working arrangements deemed those to have been appropriate at the time. We have learnt things from that process and we have decided that we will not proceed on the same basis as we move forward with work at Mount Eden Prison. 
Simon Power 
: Does the Minister stand by his statement that: “Without the collaborative working arrangement management system it was unlikely these projects would have been completed on time.”—and he has reiterated today in the House that they have been and will be completed on time and that this is a major achievement—if so how does he reconcile this with the fact that the Otago prison was supposed to be opened in 2006 rather than 2007? 
Hon DAMIEN O'CONNOR 
: Those projects—and Spring Hill Corrections Facility is yet to open—have been completed on time as projected. The over 2000 prison cells that have been built at a cost of over $1.2 billion will serve this country well. We did not like spending that money but we had to because the previous Government had ignored the needs of the Department of Corrections. 
Simon Power 
: I seek the leave of the House to table a letter from Audit New Zealand to Barry Matthews dated 31 August 2006— 
Document by leave laid on the Table of the House.