In August 2017, National announced a rebuild with a projected cost of $1.2 to $1.4 billion, with it to be open between 2024 and 2027.
A week later new Labour Leader Jacinda Ardern announced they would start work on it so quickly, if elected, construction would start by 2020. This turned out to be a promise like Auckland Light Rail and Kiwibuild.
Three years later, Labour announced a preferred design in September 2020, with a decision on the business case in February 2021. Key details were 89,000 sqm (down from 105,000), the new hospital will provide approximately 421 beds (352 in current), including 30 ICU beds, and 16 theatres.
In June 2022, construction finally began – two years after Labour promised. Cost was now $1.47 billion.
In December 2022 there was a budget blowout and Labour cut one ward, two theatres and 450 workspaces.
By April 2023, the cost was $1.68 billion, and opening delayed until 2029.
By March 2024, it was $1.88 billion. In May 2024 it was reported to have reached over $2 billion and the latest estimate is it might reach $3 billion.
So not only did Labour fail to meet their own promise of starting construction by 2020, they also left the project in a state that it won’t be complete until 2029 – two to five years later than National had planned. And they oversaw cost blowouts which saw even them have to scale the rebuild back – and now they complain that the current Government isn”;”t going to write a blank cheque for it.
David Farrar runs Curia Market Research, a specialist opinion polling and research agency, and the popular Kiwiblog where this article was sourced. He previously worked in the Parliament for eight years, serving two National Party Prime Ministers and three Opposition Leaders.
Three years later, Labour announced a preferred design in September 2020, with a decision on the business case in February 2021. Key details were 89,000 sqm (down from 105,000), the new hospital will provide approximately 421 beds (352 in current), including 30 ICU beds, and 16 theatres.
In June 2022, construction finally began – two years after Labour promised. Cost was now $1.47 billion.
In December 2022 there was a budget blowout and Labour cut one ward, two theatres and 450 workspaces.
By April 2023, the cost was $1.68 billion, and opening delayed until 2029.
By March 2024, it was $1.88 billion. In May 2024 it was reported to have reached over $2 billion and the latest estimate is it might reach $3 billion.
So not only did Labour fail to meet their own promise of starting construction by 2020, they also left the project in a state that it won’t be complete until 2029 – two to five years later than National had planned. And they oversaw cost blowouts which saw even them have to scale the rebuild back – and now they complain that the current Government isn”;”t going to write a blank cheque for it.
David Farrar runs Curia Market Research, a specialist opinion polling and research agency, and the popular Kiwiblog where this article was sourced. He previously worked in the Parliament for eight years, serving two National Party Prime Ministers and three Opposition Leaders.
4 comments:
People are also conveniently forgetting that under Labour, your access to the hospital would be severely restricted unless you happen to be Maori.
This has shades of the ferry debacle all over it. Labour make an expensive shambles, incoming national led govt inherit a project that looks like a bottomless pit for our taxes to fund and put a stop to it but get the blame for it all.
I would hope that the current government does a proper cost-benefit analysis for the hospital. I would rather the government build a new hospital that will meet the need of the region for the next 30 years now; rather than not do it properly and we are paying a lot more in the future.
Some unreported facts. The proposed and partly constructed hospital is a southern region hospital and while being constructed in Dunedin it is for residents of basically half of the South Island below the Waitaki river .
The suggested $3 Billion construction cost is bullshit and includes. plethora of "dreams , land cost , consultants greed payments, remedial site works , bureaucratic mistakes" etc etc that are NOT construction costs .
The existing 35 year old hospital is a perfectly good structure that NEEDS A PITCHED ROOF that would guarantee the quite normal attributes of shedding rainwater and stopping the rain from entering the building . NOTHING MORE needed will extend the life of the structure for a century and would be entirely approopriate as an inner city pensioner or retirement facility available after the new hospital is finished .
Therefore just honestly and practically list the construction costs separate from the political and Governmentl cost and deduct the cost of a huge retirement facility (instead of demolition ) and NZ is left with two valuable infrastructures for the price of one .
I accept some refurbishment of the existing hospital would be advantageous , but that is happenning as of NOW.
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