Power Simon: Questions for Oral Answer — Questions to Ministers 
Power Simon: Questions for Oral Answer — Questions to Ministers 
[Volume:634;Page:6075] 
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 there is always room for improvement. 
Simon Power 
: Can he confirm that the project director for the construction of the four new prisons Mr John Hamilton and the manager of administration and consulting—both external consultants—were involved in the renewal process for each other’s contracts in 2004 including writing job descriptions setting out the attributes to be considered the weighting each was to be given and the suggested pay range? 
Hon DAMIEN O'CONNOR 
: I am aware of their positions. I am not aware of all the details of how those contracts were negotiated. 
Martin Gallagher 
: Given the many wonderful New Zealand men and women who serve our country in the Department of Corrections can the Minister give some examples of why we should have confidence in a department that is ably served by those wonderful men and women? 
Hon DAMIEN O'CONNOR 
: Yes I am very happy to. Department of Corrections staff have overseen a difficult but improving situation for a number of years. Escapes have fallen by 78 percent in the last 10 years. Serious assaults on staff have fallen by 89 percent since 1997. Over the last 3 years we have more than doubled the contraband we seize from people before it gets into prisons. I think they are doing a wonderful job. 
Simon Power 
: Can the Minister confirm that as a result of Mr Hamilton’s contract being renewed in 2004 his daily rate went from $1300 plus GST a day to $1764 plus GST a day; and in light of the collusion that occurred with his fellow consultant over remuneration rates does the Minister think the public has received value for money for the $2 million that Mr Hamilton was paid to February this year despite the fact that he has overseen the biggest budget blowout in living memory? 
Hon DAMIEN O'CONNOR 
: I am aware of their positions. I am aware of a pay rate similar to or approximately around the figure that the member has suggested. A number of issues have been raised in the Auditor-General’s report on the review of this project which was an $890 million project to build four new prisons after years of neglect by the last National Government. Contracts between staff and the contractors themselves are the responsibility of the Chief Executive of the Department of Corrections. 
Simon Power 
: Can the Minister confirm that consultant John Hamilton’s original contract in 2000 was not put out for tender at the time was extended twice after that and was awarded a matter of days after he had resigned as an employee of the Department of Corrections? 
Hon DAMIEN O'CONNOR 
: I am aware of those claims I understand they have been investigated and changes have been made in that area. 
Simon Power 
: Can the Minister confirm that as stated in the report of the Audit Office dated June 2005 most of the members of the department’s steering group for the prisons project were not involved in the decision to renew Mr Hamilton’s contract; and is he at all concerned about the finding of the State Services Commission report that “… there was often considerable pressure to make quick decisions at Steering Group level again based on little information or on verbal representations from the Project Director.”—Hamilton—“This often resulted in situations of so-called ‘no choice’ decisions …” including the decision to adopt collaborative working arrangements; and does he not think that suggests his department really is deep in the mire? 
Hon DAMIEN O'CONNOR 
: I am aware that some of these issues were raised in the review. Changes were made within the department and further changes have occurred in that whole area of management of these projects. 
Simon Power 
: Can the Minister confirm to the House that the contract for establishing the collaborative working arrangements was awarded to Mr Stewart Rix to the tune of $1.3 million and was not tendered out because “The department researched the market and found that [Rix] was the only New Zealand based provider of CWAs.”; and is he at all surprised by that when the State Services Commission report reveals that it was Hamilton and Rix who convinced the Department of Corrections to adopt collaborative working arrangements? 
Hon DAMIEN O'CONNOR 
: I am aware of some of those claims and assertions. I would like to remind the House that this was one of the largest construction projects in the country. Two prisons have already been completed on time and to budget. The issue of cost overruns has been thoroughly canvassed in a couple of reviews. Changes have been made. I am confident that we will complete the final two prisons on time and that they will be available to secure prisoners and keep the community safe which is what we set out to do in the first place. 
Simon Power 
: I seek the leave of the House to table a copy of the Audit Office report confirming that the tendering of those documents was completed by two external consultants outlining each other’s remuneration range. 
Document by leave laid on the Table of the House.