Taxpayers will foot the whole bill for yet another failed public-private partnership, the Public Service Association says – and the government should call time on its obsession with the funding model.
Greater Christchurch Regeneration Minister Gerry Brownlee says it is no longer in partnership with Plenary Conventions New Zealand to build the half-billion-dollar complex.
Instead, taxpayers will foot the whole bill for a scaled-back project, amid reports the government was struggling to keep control of costs.
“It’s time for the government to get over its ideological fixation on PPPs”, PSA National Secretary Glenn Barclay says.
“They’re complex and cumbersome ways to do business, and there’s no evidence they deliver any better results in the long term.
“Even the Treasury’s noted the advantages of PPPs must be weighed against the difficulties of the way they operate.”
Treasury has also expressed concerns about political risks for the government – if the private sector partner goes bankrupt, or goes on to make big profits.
“The government must learn from the Christchurch incident,” Mr Barclay says.
“PPPs are not the right way to do major infrastructure projects, and they need to reject this funding model once and for all.”