Whanganui letters: Sarjeant cost claims inaccurate

Whanganui's mayor says Sarjeant Gallery Redevelopment Project costs are not "out of control". Photo / Bevan Conley

I write in response to Dave Hill's letter (March 22).

Mr Hill does not have all of his facts straight. His statement that the Sarjeant Gallery Redevelopment Project is increasing in cost by $500,000 a month is incorrect. The final costs out to the end of the construction period in late 2023 have been calculated based on current market conditions and with advice from an independent quantity surveyor.

Saying costs are escalating "out of control" is inaccurate and inflammatory. The project is regularly and minutely tested and inspected by independent quantity surveys, peer reviews and an independent project advisory group in addition to reporting and accountability requirements from the council, central government and other financial stakeholders.

The council's commitment to the project is $5 million, not $4 million.

Mr Hill refers to $3.9 million in underwriting in 2017 that the council agreed to in order to help secure $16 million of central government funding. This underwriting was never required as fundraising met the Government's targets.

In excess of $50 million has to date been raised from private and public sources for the project, with 70 per cent of that coming from successive central governments who view the Sarjeant Gallery as a potent economic driver for this region. The council's $5 million is in addition to that amount.

Our region is expected to enjoy an estimated $11 million a year injected into the local economy and local businesses are already benefiting from $10 million worth of contracts.
We are well on our way to the reopening of the Sarjeant Gallery Te Whare o Rehua Whanganui. People will visit this national treasure and we will be proud to have played a part in its restoration and redevelopment.

MAYOR HAMISH McDOUALL
Whanganui

Food tax 'evil'

So Mr Luxon wants to give tax cuts to the idle rich - the poor dears can hardly afford their caviar and champagne these days. This is despite the fact that New Zealand has some of the lowest tax rates on the wealthy of comparable countries in the OECD. Our top income tax rate is 39 per cent while most OECD countries have a top rate of 45 per cent.

He proposes to fund this government handout to the rich by "reducing wasteful expenditure". Presumably, he means cutting back on inessentials such as funding of the police, health, and education. After all, who needs such luxuries?

He makes no mention of the one tax that should be removed - GST on food. There is something inherently evil about a tax on food as this is one of the necessities of life, like air and water. This is entirely feasible as many OECD countries do not have GST or equivalent taxes on food. To cover the cost of this the top income tax rate should be increased to 45 per cent as it is in comparable countries.

Rather than paying less tax, the idle rich should pay more as they can afford it, whereas ordinary people have very little, if any, discretionary spending. All, or most, of their money goes on food, housing and transport, while the wealthy use their excess money to buy up more shares and property and increase their wealth.

ELWYN EVANS
Gonville

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