200-300% blowout on industry standard costs



If the numbers are correct, this has the hallmarks of third-term government arrogance that voters are going to punish.

Government agencies are being accused of playing “fast and loose” with taxpayer money, as they plan to spend almost $23 million on the fit out of two new central city offices in Christchurch.

The $13 million Grand Central building fit out and the $9.87 million BNZ Centre fit out both add up to more than $1600 per square metre.

According to Colliers International estimates, fit out for standard office space should cost between $550 and $900 per square metre.

The revelation comes after the Ministry of Business, Innovation and Employment was slammed for its $16m Wellington office fit out last year, which included more than $140,000 spent on a curved LED screen and $67,000 on a stone sign.

MBIE is one of three agencies moving into the Grand Central building, with about 550 staff between them based there. About 420 staff from nine agencies will be housed in the BNZ Centre.

Labour state services spokesman Kris Faafoi said more care was needed with public money.

“The issue here is a discrepancy between what is normal and what is being spent, and when you look at the likes of MBIE, with big screens and expensive fit outs, unfortunately the Government has got a track record here.”

He said State Services Minister Paula Bennett had claimed the move to the central city would would save a significant amount of money, but when pressed in a select committee meeting could not say how much.

It is clearly a Labour hit, but the problem is that the government appear to be left flat-footed.

MBIE chief financial officer Stewart McRobie said he could not provide details, because final decisions on things like furniture purchases had not yet been made.

But he said of MBIE’s $4.3m share of the cost, $949,000 was budgeted for furniture and $40k for moving and re-installing equipment.

He could not say how much furniture or equipment from the old building would be reused.

“Final decisions on the furniture have not yet been made, but MBIE intends to reuse furniture where this makes sense and is efficient. Where it’s practical to do so, we will look at options to donate or sell furniture.”

The budget includes more than $5000 each for “collaboration acoustic booth” sofas.
He said he could not say exactly how much the booths cost, or how many would be purchased.

$1600 per square metre for an office fit-out? You can build houses at $1600 per square metre. These buildings already have the walls, ceilings, kitchens and toilets. All they need to do is partition and put some furniture in.

Once again Bennett and Joyce appear to be in the news for the wrong reasons: spending our money liberally.


– NZ Herald

Do you want:

  • Ad-free access?
  • Access to our very popular daily crossword?
  • Access to daily sudoku?
  • Access to Incite Politics magazine articles?
  • Access to podcasts?
  • Access to political polls?

Our subscribers’ financial support is the reason why we have been able to offer our latest service; Audio blogs. 

Click Here  to support us and watch the number of services grow.

As much at home writing editorials as being the subject of them, Cam has won awards, including the Canon Media Award for his work on the Len Brown/Bevan Chuang story. When he’s not creating the news, he tends to be in it, with protagonists using the courts, media and social media to deliver financial as well as death threats.

They say that news is something that someone, somewhere, wants kept quiet. Cam Slater doesn’t do quiet and, as a result, he is a polarising, controversial but highly effective journalist who takes no prisoners.

He is fearless in his pursuit of a story.

Love him or loathe him, you can’t ignore him.

To read Cam’s previous articles click on his name in blue.