Deputy Auditor-General Phillipa Smith says she has seen "no
evidence to suggest that the final decision to negotiate with
SkyCity was influenced by any inappropriate considerations".
"However, we found a range of deficiencies in the advice that
the ministry (Ministry of Economic Development) provided and
the steps that officials and ministers took leading up to
that decision. The quality of support that was provided fell
short of what we would have expected from the lead government
agency on commercial and procurement matters," it said.
"However, we found a range of deficiencies in the advice that
the ministry provided and the steps that officials and
ministers took leading up to that decision," Ms Smith said.
"The quality of support that was provided fell short of what
we would have expected from the lead government agency on
commercial and procurement matters."
Ms Smith said those "procedural problems reflect some of the
challenges of applying general procurement expectations to
complex matters requiring political and policy decisions".
"In our view, better planning at the outset would have helped
to identify and manage the risks."
Ms Smith said the "inappropriate considerations" the inquiry
looked for included "connections between political and
business leaders".
SkyCity submitted a proposal to the Government some time
after Mr Key had dinner with the casino company's board where
the convention centre and possible changes to the Gambling
Act were discussed.
Ms Smith said she and her colleagues concluded that
feasibility and exploratory work in the first stage of the
process of seeking expressions of interest were carried out
"reasonably".
"However by the time it was expected that SkyCity would put a
firm proposal to the Government for support , officials
should have been working to understand and advise on the
procedural obligations and principles that would need to
govern the next steps. We found no evidence that officials
were doing so at this stage."
Economic Development Minister Steven Joyce said the reported
cleared the Government of claims SkyCity was given an unfair
advantage in the bidding process.
"The OAG makes it clear it has seen nothing to suggest the
final decision to negotiate with SkyCity was influenced by
any inappropriate considerations.
"Labour's accusation the Government misled the public on the
costs of the negotiations is also without substance as the
report states it is inevitable that there will be costs
involved in properly negotiating a complex commercial
arrangement of this kind."
Mr Joyce said the report accepted that a great deal of
careful work was carried out by officials to understand the
market, and that officials were acting in good faith.
The report stressed that the issues were procedural rather
than about the substance of what was being considered.
"An international convention centre in Auckland would be a
major asset for New Zealand and will generate significant
spin-off benefits including a $90 million annual injection
into the economy; an estimated 1000 jobs during construction;
and 800 jobs once it is up and running," he said.
He said officials are working hard to conclude negotiations
with SkyCity and would ensure any deal was in the best
interests of New Zealanders.
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