Time to ‘get things done’ - minister

Let's get on with it.

That was the general response to the announcement that after years of delay, the government has finally signed a contract with Australian construction giant CPB to build the new Dunedin hospital inpatient building.

Speaking at the project site yesterday, Health Minister Simeon Brown said the deal was all about getting the $1.88 billion project "moving".

The build is New Zealand’s single biggest health infrastructure project and would provide more than 900 FTE jobs and contribute around $100 million annually to Dunedin’s economy at the peak of construction, he said.

"It’s been too long talked about.

"Actually, we need to get on and get things done."

Former Labour health minister Pete Hodgson, who led the early stages of the project, said yesterday’s announcement was great news.

"Well, they said they were going to do it in September and they’ve done it, so we can say that gives us certainty where we have not had certainty.

"I’m delighted and I’m just sorry that it’s taken so very, very long."

Simeon Brown. Photo: Peter McIntosh
Simeon Brown. Photo: Peter McIntosh
Mr Hodgson said several things needed to be sorted through. They included the pathology wing, issues around mental health for older people and sourcing surgical supplies.

"That will all take a bit of time, but we’ve got to remember that the new Dunedin hospital is built on the assumption of pretty high efficiency and pretty advanced primary and community care."

Despite being pleased about the contract being signed, Mr Hodgson did not think the inpatients building would be delivered to a cost of $1.9b.

CPB had been expected to sign a contract at the start of 2023, after it had already spent 18 months delivering an early contractor engagement contract.

But the project was delayed amid cutbacks and arguments over the contract and how much risk the government took on.

Labour health spokeswoman Dr Ayesha Verrall said Prime Minister Christopher Luxon had "done nothing but cut and stall the Dunedin hospital rebuild".

"He’s wasted two years in which Dunedin could have had better health facilities for those who need it."

Asked about delays, Mr Brown said "well look, it’s been through a number of phases".

"Ultimately, we made some decisions around the scope of the building this year, which we announced in January.

"But as I said in January, construction would start again in July, which is what happened."

During that time negotiation for the contract was under way, Mr Brown said.

"We appointed our Crown Manager Evan Davies, who has successfully led that negotiation.

"So, yes, it’s been a long process, but ultimately this has led to, I think, a contract which we can get behind."

Mr Davies said CPB had "a number of attributes", which made it an ideal fit.

"They had scale and international experience, and most particularly health sector experience in Australia."

A crane will be in the sky mid-next year and the hospital is due to be open to patients in 2031.

Dunedin Mayor Jules Radich said CPB recently completed a hospital in Australia on time and on budget.

"This southern region tertiary hospital will be a vital component of our health infrastructure and also of the future of Dunedin as an education city and training centre of health professionals for the whole of New Zealand."

CPB has a troubled history of delivering government projects that have resulted in rising costs, delays and legal wrangles.

Projects have included the North Island’s Transmission Gully motorway, the Christchurch Hospital acute services building and the Christchurch Parakiore sports centre, which CPB had claimed was costing more than three times as much to build as originally contracted.

When Mr Brown was asked about CPB’s track record, he said "any project of this size will have its complexities".

"Ultimately, that is why we’ve also put in place a Crown Manager, whose responsibility is to work closely with the contractor to ensure it’s delivered on time and within budget."

matthew.littlewood@odt.co.nz

 

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