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Home / New Zealand

Split on settlement decision

By Tessa Johnstone
Wairarapa Times-Age·
18 Oct, 2012 08:23 PM2 mins to read

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Masterton District Councillors were not unanimous in their decision to withhold details of a settlement with a consulting firm.

The council said earlier this week that consultants Sinclair Knight Merz were now leading the $30 million Homebush sewerage upgrade project, and it had reached a settlement with previous consultants Beca.

It was revealed last year the firm had underestimated the project costs by up to $6.6 million.

Councillor David Holmes said he could not reveal anything about the content of the settlement with Beca, but there were several councillors concerned about the decision for it to remain confidential.

"I am not happy about not releasing the details, categorically," Mr Holmes said.

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Councillors were elected representatives, and too much ratepayer business was being discussed privately, he said.

Masterton Mayor Garry Daniell reiterated yesterday's position that the council could not give any details of the settlement.

Mr Daniell said it would be inappropriate to indicate whether councillors were in agreement on the matter because it was an in-committee decision, and it was the committee's resolution that it remain confidential.

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He could not reveal the full costs of the project while it was still negotiating, but he was confident the project would come in under the current rated provision.

"The current situation is we have a handle on the final costs which is favourable and we know the project can now proceed to the conclusion we desire," Mr Daniell said.

The main point was that new contractual arrangements were now in place and the work could carry on in a robust way, which would support the health of the Ruamahanga river, he said.

Homebush neighbour Peter Martin said residents were given a project update at a meeting on Monday, but it did not include project costs which the council said it was still finalising.

"We weren't given a financial update, which is a bit surprising and certainly we would have been keen to have that, but they weren't willing to release how they were financially or estimates for the future," Mr Martin said.

He is part of the Homebush Neighbours' Group that has opposed the project for eight years, and was now waiting to see if the system works as planned. He said Hoppers Construction had kept them informed and minimised the effect on neighbours.

A spokeswoman for Beca said the company would not make any comment on the settlement.

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