MBIE releases costs of head office refit

16 June 2015

The Ministry of Business, Innovation and Employment (MBIE) has today released the costs associated with refitting the Stout Street property for its head office in Wellington.

“I am conscious there has been a lot of interest and commentary about the refurbishment and associated costs of moving the various parts of the Ministry into one location in the old Defence Headquarters,” MBIE’s Chief Executive, Mr Smol said.

“Because of this, I am making available a breakdown of these high level costs and the project closure report,” he said.

Mr Smol said after reviewing detailed analysis of the project and talking to those involved, the view he was left with was one of dedicated staff working very hard to deliver the best working space possible within budget and time constraints.

“The project was completed on time, $2.2million under budget and will deliver significant taxpayer savings, $40-$50 million, over the next 20 years. We had delivered to us a functional workspace in a heritage building which has retained much of its historical character while being refitted for a modern working environment.

“Though there were tough negotiations on thousands of items between MBIE and the landlord, developers and suppliers there were areas in which we should have been more careful.

“MBIE has previously acknowledged the cost of the exterior sign was too high. I believe another area that should have been more carefully considered is the public information screen above the reception area. The screen is a useful communication tool for both staff and visitors. MBIE hosted more than 3,000 registered visitors to Stout Street last month, for example, but again, the cost for the public information screen was too high.

“While we can’t change these past decisions, I have assured the Minister for Economic Development that I am putting in place arrangements to make sure any significant projects have additional oversight so that costs incurred are justifiable and an acceptable use of public funds. The person responsible for this function will report directly to me,” Mr Smol said.

“We must be careful about all expenditures, large and small, now and in the future.”

See further information in the attached background document.

Ends

Attachment: Press_release_and_information_for_media.docx
Scoop PDF version: Press_release_and_information_for_media.pdf

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