Corrections Minister Responsible For National Scandal
The Minister of Corrections is responsible for a national scandal.
His proposed Northland prison at Ngawha is a disaster. Originally estimated to cost $40 million, the cost has blown out
to over $100 million, and it is still growing.
The whole project is a scandalous waste of taxpayers money - $60 million to be exact - because the site chosen for the
prison is so inappropriate and unsuitable.
Who in their right mind, I ask the House, would build a prison on a geothermal fault line in an area that has one of the
highest rainfalls in New Zealand?
Scientists at the Institute of Geological and Nuclear Sciences have stated that there is a possibility that the site
chosen for the prison could erupt. They say it is difficult to imagine a site with so many disadvantages. Those problems
will be both difficult and costly to mitigate against. The site is low lying, wet and even swampy. It could contain lava
caves. Because of the ground water, more than 21,000 wick wells of up to 20 metres deep will need to be drilled on the
site for drainage.
Large volumes of earthworks will need to be undertaken to remove and transport unsuitable materials. Those materials may
require containment because of the possible release of undesirable mineralisation. Equally large quantities of
replacement fill will need to be transported and compacted.
The scientists believe that site has the potential for hydrothermal eruptions as well as hazardous gas emissions that
could be potentially fatal.
But government scientists are not the only ones concerned. Treasury believes that the proposed prison site "is
particularly unsuitable, given the presence of a stream that runs through the facility, the lack of a flat building
platform, and geothermal issues, to name a few specific problems".
They believe these issues have significantly raised the cost of the prison, as the need to spend over $5 million on the
stream that runs through the site indicates.
Treasury suggested that a more cost-effective alternative needs to be found.
More recently, they indicated they were increasingly concerned over the rising costs of the facility as a result of the
unsuitability of the site. They concluded "that the need to continue with this facility is no longer pressing".
In view of that advice, I want to ask the Minister why he hasn't already pulled the plug on the prison project? In fact
he could easily have done it and saved face, at the time the government's bid to gain resource consents was thrown out.
He could have put an end, there and then.
But he didn't and the extravagant spending by this Alliance Minister just goes on and on. Why is he hiring dozens of
consultants and paying them as much as $300 an hour, if not more, to appeal the Regional Council's decision? Does he
think that its right to spend half a million dollars on that court case, a cost that doesn't even include departmental
expenses of over $100,000?
How can he justify the cost to the department of more than $200,000, to the former Assistant General Manager of
Corrections, John Hamilton, who is now the private consultant driving the project? Is that on top of the $1200 a day
that the Minister now pays Mr Hamilton, I ask? How did the Minister arrive at the figure of $1200 a day for the
contract? Why wasn't the contract put out to competitive tender? Is the Minister concerned about allegations of bribery
over the prison, that are swirling around Mr Hamilton, and if so, what does he intend to do about it?
Does he think it is fair that the Department and its lawyers have been allegedly bullying the families of a key
witnesses, one of whom is very sick with terminal cancer? Does he think it is fair that the government can throw half a
million plus dollars at this court case, while some of those opposing families cannot even afford a lawyer?
Does the Minister think it is right that he has deeply divided the Ngati Rangi people of Northland, by anointing a
breakaway group as 'partners' to Corrections, paying them more than $18,000 to do a PR job for him, not only in
Northland but in the Beehive as well? What does he say to those on the other side of the division he has created, the
majority 1200 shareholders and family who remain firmly opposed to the project.
Minister, I say that you are responsible for promoting a misguided project that will be a scandalous waste of taxpayers
money - $60 million and rising at this stage. You have turned your back on common sense - $60 million spent in a proper
manner could do a huge amount of good, particularly for the people of Northland. Instead, you intend, literally, to
throw much of it into a big hole in the ground.
I believe you have acted irresponsibly with regard to this project and that the choice of site is resulting in excessive
public spending. I intend to write to the Auditor General to ask him hold an inquiry.
Ends