The Star 29-09-16

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OIL DRILLING PLAN

NEW TWIST ON OLD FAVOURITE

Reaction to Government bid to explore off Canty coast

Prepare a steak sandwich using this week’s food specials

P8

P31

Thursday, September 29, 2016

Re-elect Lianne Dalziel

for Mayor Authorised by Rob Davidson 1/394 Riccarton Rd

Convention centre deal: How it went pear-shaped By Shelley Robinson OFFICIAL documents have revealed for the first time what contributed to the soured convention centre deal between the Government and Plenary Conventions New Zealand. Treasury documents released under the Official Information Act show the slow demise over about two years. There were delays due to the difficulty of Plenary (PCNZ) building the project within Cabinet’s budget. How much Cabinet has put aside for the project remains under-wraps, with costs redacted in the document. The city council’s cost-share agreement showed a budget of $284 million, expected to be topped up by private partnerships. More than $84.5 million has been spent on the convention centre so far, with little to show on the ground. The Treasury confirmed yesterday this spend was budgeted and not a blow-out. PCNZ, a consortium of Plenary Group, Ngai Tahu Property and Carter Group, won the building contract not only for the convention centre, but for the surrounding precinct, and maintain it for 10 years. It was announced on August 8, 2014. The Government has remained tight-lipped on why the PCNZ deal broke down, citing commercial sensitivity – saying only that it was “mutually agreed”. The documents showed events

OLD AND NEW: The old convention centre (above) and what the city will have at the end of 2019 with the Crown leading the project (top).

came to a head on May 11 this year when PCNZ tabled information that showed “pricing pressures” as a result of a “pricing update.” The actual pricing pressure was redacted from the memo. PCNZ started legal processes the

Gerry Brownlee

Megan Woods

Jamie Gough

next day. On May 12, PCNZ issued Otakaro Ltd, the Governmentowned company which took over from the Canterbury Earthquake Recovery Authority, with a written notice. The notice said

was “unlikely” that the parties would reach agreement within the Affordability Threshold of May 31. That meant 15 days of “good faith” negotiations, before PCNZ could terminate the “process

agreement”, said Treasury in a memo to Minister of Finance Bill English and Minister supporting Greater Christchurch Regeneration Gerry Brownlee on May 20. •Turn to page 4

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starnews.co.nz

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