Clark David: Oral Questions — Questions to MinistersText is incorporated into the Bound VolumeClark David: Oral Questions — Questions to Ministers[Sitting date: 25 March 2015. Volume:704;Page:2576. Text is incorporated into the Bound Volume.]8.Dr DAVID CLARK (Labour—Dunedin North)to the Minister for Economic Development: When did his officials first learn of SkyCity’s desire for a public funding top-up in order for the International Convention Centre to meet the Preliminary Design specifications?Hon STEVEN JOYCE (Minister for Economic Development):I am cautious in light of recent events but this is quite a long answer to get some detail out for the member. As I have previously advised the House I was advised of the cost escalation of the preliminary design in a briefing dated 15 October. I am advised that Skycity’s preliminary design was delivered to Ministry of Business Innovation and Employment officials on 6 October. The preliminary design included an estimated construction cost that exceeded the agreed amount by $70 million to $130 million. I made it clear to ministry officials that as much as possible any cost escalations should be designed out in the final design and that of the various options then being discussed by Skycity and the ministry for closing the funding gap our least-preferred option was any form of Government contribution. Following further discussions between officials and Skycity Skycity accepted that position by way of a market update on 15 February 2015 and agreed to amend the design to ensure no financial contribution was required.Dr David Clark: I raise a point of order Mr Speaker. This was a question on notice. The Minister has referred to the time when a report was delivered but he has not answered the question which is pretty clear and I think non-political. It is seeking a date: when his officials first learnt of Skycity’s desire.Mr SPEAKER: I listened to the answer. I thought there were some dates given which were reasonably specific. Does the Minister have anything further to add? Otherwise we will move on.Hon STEVEN JOYCE: Perhaps I can by way of explanation. I think the difficulty in terms of the question is that the member speaks of a desire for a public funding top-up. Certainly officials have been through and they do not see that as being actually expressed as a desire. It was Ministry of Business Innovation and Employment officials and Skycity looking at options to address the issue.Dr David Clark: In light of that answer and in light of clause 9.5 of the New Zealand International Convention Centre deal stating that each design phase will be developed collaboratively between the Crown and Skycity why was the Minister kept in the dark during an election year about the possibility of a Budget blowout or the need to downgrade the convention centre’s iconic design?Hon STEVEN JOYCE: For the member’s benefit to give him a bit of a feel for it the preliminary design when it was delivered to the ministry was a total of 10 kilograms of documents that had to be delivered across a whole range of information. So yes there were collaborative elements in terms of discussion with officials but my understanding is that then at the end of that process Skycity goes off and gets its costings and then delivers it and I was advised as soon as reasonably practical after the information was delivered.Dr David Clark: I raise a point of order Mr Speaker. That was a question about the collaboration aspect. Is the Minister saying that 10 kilograms of documents were delivered without any collaboration?Mr SPEAKER: That is exactly the way the member now needs to proceed. The question has been addressed. The member has additional supplementary questions. Do not raise them as a point of order; raise them as a supplementary question to the Minister.Dr David Clark: Is the Minister saying that the collaboration was limited between officials and Skycity to the extent that 10 kilograms of documents were delivered before officials had had anything to do with the development of the design?Hon STEVEN JOYCE: No I am not saying that. What I am saying is that there was collaboration over elements of the design as the process continued but actually the costing of the design was done by Skycity as part of the finalisation of that process and that was presented to officials on the date described as 6 October.Dr David Clark: Was the Minister aware that the preliminary design phase was scheduled to run from June to September 2014; if so why did the Minister not inquire as to the prospective changes in Crown costs during election year?Hon STEVEN JOYCE: Actually the member may recall that I have been saying in the House previously that in the concept design phase there was a prediction of a smaller cost overrun which it was agreed would be designed out during the preliminary design phase. Officials and Skycity went off to do that and reported back to me as I say on 15 October 2014 at which point they advised that it had not been able to occur and in fact it had come to a larger amount and all this is in the public domain.Dr David Clark: Given the legal expectation that each design phase would be a collaboration between Skycity and the Crown is he currently engaged in the design process?Hon STEVEN JOYCE: I have had very little advice in terms of the process that is being gone through currently to control costs around the convention centre but again it is a discussion around potential changes to the design and matters in relation to cost would be determined at the end of that process. In any event it is now to Skycity’s cost but there will be as I said to the member Metiria Turei at some point a balancing exercise at the end which will look at the overall cost and additional benefits for Skycity and making sure that the net cost exceeds the value of the concessions.Dr David Clark: Why do a series of briefings released under the Official Information Act including a briefing for the Prime Minister refer to a September preliminary design?Hon STEVEN JOYCE: I presume because as the member referred to earlier—I do not recall the particular briefing but I presume it is because that was the plan. But of course as the member knows it was delivered on 6 October and then I was briefed on 15 October.Dr David Clark: I seek leave to table a briefing for the Prime Minister from November 2014 referring to a September preliminary design.Mr SPEAKER: Order! Is it an Official Information—Dr David Clark: Yes.Mr SPEAKER: Leave is sought to table that particular document. Is there any objection? There is none. It can be tabled.Document by leave laid on the Table of the House.