Government accused of $60 million prison blowout

Paul Hutchison

The cost of building the controversial Springhill Prison in north Waikato has blown out by more than $60 million in three years, National MP Paul Hutchison claims.

Dr Hutchison said yesterday the cost -- which includes $1.3 million for iwi consultation -- had swelled by more than 30 per cent, from an estimated $188 million in 2001 to $250 million.

He said most of the increase was due to the Corrections Department having to spend an extra $38.8 million to move 1.1 million cubic metres of earth to make the Meremere site stable, and said the prison would work out at $384,000 per bed.

"When compared to the $90,000 for a bed in a nursing home it shows just how excessive the spending has become. It is a massive cost that could have been avoided had the Government chosen a more appropriate site from the 46 available," said the Port Waikato MP.

"The excessive spending is an insult to the thousands of elderly people who live in insecurity in their nursing home beds, which cost a quarter of those at Springhill Prison."

However, Corrections Minister Paul Swain denied there had been a blowout.

He told Parliament the increases were estimates only, and were due to the strength of the economy, which was fuelling higher diesel and labour costs.

He said part of the reason for the high earthworks cost was to move soil to minimise visual pollution at the site.

Dr Hutchison said the minister's response was "utter rubbish".

"If it's not a (budget) blowout, what is it?

"If they had chosen the site wisely in the first place the earthworks would never have needed to be done," he said.

- NZPA