Record complaints over the state of our roads, the Government’s multi-million dollar bill on an empty building and terrifying plane crash in Nepal in the latest New Zealand Herald headlines. Video / NZ Herald
The Ministry of Education’s head office could cost taxpayers “tens of millions of dollars” during the next decade, even as the building stands empty in Wellington’s CBD.
Newstalk ZB can reveal more than $2m was spent in just four months last year, covering rent and maintenance at the evacuated Mātauranga House, after staff were moved out due to an earthquake risk assessment.
Despite that, the non-cancellable lease commitment for the building isn’t set to expire until 2030.
It puts the Crown in what Education Minister Chris Hipkins is calling an “interesting position”, with negotiations under way between the ministry and landlord.
National education spokeswoman Erica Stanford is horrified at the cost, calling it “an absolute travesty.”
“This is going to cost the taxpayer tens of millions of dollars in the long run, it’s not just chump change”, she claimed.
The Ministry of Education maintains it is “currently working through the requirements of the lease in order to deal with the seismic issues that have arisen”.
Hipkins said the ministry still needs to comply with its lease, but accepts the situation is a worry.
“We’re in a position where we have an empty building that we’re not able to occupy, that of course is going to be a concern”, he said.
Responding to written questions by National, Hipkins revealed between June 1 and September 30, 2022, the total ongoing operating cost for Mātauranga House was $2,399,305, excluding GST.
That included $2,261,124 for rent, $27,029 for energy, $51,772 for cleaning/maintenance, $25,788 for security, and $33,592 for insurance.
It comes after ZB previously revealed a $21,502 power bill for June, July and August 2022, with photos showing office lights switched on at all hours of the day, including just after 5am.
Lights on, but anyone home? @NewstalkZB can reveal the Ministry of Education's head office has racked up a 21k power bill, since it was evacuated in May.
Lights on at all hours, including 5am. MOE has now "reminded" moving contractors to turn them off. pic.twitter.com/PPuIMS5I15
In May last year, it was announced they would have to leave Mātauranga House on Bowen St, after an engineering report rated it 25 per cent of the New Building Standard (NBS), due to its concrete floors.
According to the Ministry of Education’s 2022 annual report, about 1000 people were forced to work at home, before moving into a new office space from September.
But the review notes that officials are talking with the landlord about potential seismic remediation of the building, as the lease doesn’t expire until December 2030.
“The Ministry continues to pay rent while the landlord and Ministry engineers prepare individual detailed seismic assessments”, it said.
The landlord’s previously been reported as calling the decision to evacuate the building “knee-jerk.”
In a statement, the ministry’s corporate group manager Rob Campbell said they’re trying to bring the price tag down in the meantime.
“While the dispute resolution processes are underway, the Ministry is meeting the payment of ongoing operating costs for the building such as rent, insurance and energy”, he said.
“We are minimising these ongoing operational costs and working with providers on options for reducing cleaning, maintenance, and insurance costs.”
Education Minister Chris Hipkins. Photo / Mark Mitchell
Hipkins told ZB that the lease arrangement needed to be honoured “until a negotiation reaches a conclusion”.
But he said it wouldn’t be appropriate for him to step into any commercial talks.
“I’m confident that the Secretary for Education [Iona Holsted] is doing everything possible to deal with the situation.”
“I don’t want to see an earthquake that might potentially kill people if there was something we could have done ... there’s clear engineering risk around the building [Mātauranga House].”
National’s Stanford said if she was the Minister of Education, she would “make this a top priority.”
“This money could be directed directly into children and frontline need, instead it’s being wasted on a building that no one is using”, she said.
Stanford said keeping the lease wouldn’t be acceptable in the private sector.
“But for this Government, they do not have a care in the world for public money,” she claimed.
