1 00:00:00,360 --> 00:00:01,720 Speaker 1: Heather do for Cel. 2 00:00:01,760 --> 00:00:04,520 Speaker 2: Wellington City Council has voted to pause work on the 3 00:00:04,559 --> 00:00:07,720 Speaker 2: Golden Mile project yesterday. The cost blew out even further. 4 00:00:07,800 --> 00:00:10,280 Speaker 2: It's now estimated to cost two hundred and twenty million dollars. 5 00:00:10,280 --> 00:00:13,160 Speaker 2: That's almost triple what it was originally supposed to cost. 6 00:00:13,440 --> 00:00:17,120 Speaker 2: Andrew Little, as the Mayor of Wellington, high Andrew chances 7 00:00:17,120 --> 00:00:18,440 Speaker 2: that you're going to scrap this all together. 8 00:00:20,040 --> 00:00:21,640 Speaker 1: Look, I don't know that we need to look at 9 00:00:21,640 --> 00:00:23,759 Speaker 1: the cost of it. The realitea is right now the 10 00:00:23,800 --> 00:00:26,720 Speaker 1: Wellington City Council cannot take on any more cost or 11 00:00:26,760 --> 00:00:29,840 Speaker 1: any more debt because of the cost playouts we've had 12 00:00:29,840 --> 00:00:32,199 Speaker 1: another projects. The reality is, Look, there are some good 13 00:00:32,240 --> 00:00:35,559 Speaker 1: things about the Golden Mile, but there may well be 14 00:00:35,600 --> 00:00:38,600 Speaker 1: alternative we should be exploring. So for me, it's about 15 00:00:38,640 --> 00:00:41,519 Speaker 1: focusing on what the objectives are. But what I'm very 16 00:00:41,560 --> 00:00:45,840 Speaker 1: clear about is that we cannot commit Wellingtonians to cost 17 00:00:45,920 --> 00:00:48,240 Speaker 1: increases that simply we cannot be here right now. 18 00:00:48,360 --> 00:00:53,560 Speaker 3: What's caused this particular blowout, Look, I think as they've 19 00:00:53,560 --> 00:00:56,880 Speaker 3: been dealing with a contractor, they found that the costs 20 00:00:56,880 --> 00:01:01,200 Speaker 3: that were specified what four years ago are no longer realistic. 21 00:01:01,240 --> 00:01:03,760 Speaker 1: That's not a surprise, but I think, like all these things, 22 00:01:03,760 --> 00:01:05,600 Speaker 1: you know, you get down to the detail planning, things 23 00:01:05,640 --> 00:01:08,640 Speaker 1: turn up and it just costs more. And the problem 24 00:01:08,680 --> 00:01:11,160 Speaker 1: with God is that even though the government had agreed 25 00:01:11,400 --> 00:01:13,640 Speaker 1: at that time to fund fifty one percent of it, 26 00:01:13,720 --> 00:01:16,880 Speaker 1: they kept the dollar amount at that rate, at the 27 00:01:16,880 --> 00:01:19,840 Speaker 1: twenty twenty one to the level. So any increase in 28 00:01:19,920 --> 00:01:23,840 Speaker 1: cost is entirely forced on Willington rate payers and that's 29 00:01:23,920 --> 00:01:26,200 Speaker 1: what's making it just too much for us. 30 00:01:26,280 --> 00:01:28,280 Speaker 2: Right, So it's not like they've gone underground and they've 31 00:01:28,280 --> 00:01:29,840 Speaker 2: found all of a sudden there are pipes that need 32 00:01:29,840 --> 00:01:31,880 Speaker 2: to be fixed or some additional cost. It is it 33 00:01:31,920 --> 00:01:32,720 Speaker 2: is just inflation. 34 00:01:33,760 --> 00:01:37,960 Speaker 1: Yeah yeah, yeah, during the pipes underground was alreadyffected. Then 35 00:01:38,560 --> 00:01:40,200 Speaker 1: that was that was a twenty million dollars part of 36 00:01:40,200 --> 00:01:42,520 Speaker 1: the project. I mean the questions of course, whether that's 37 00:01:42,520 --> 00:01:44,960 Speaker 1: a realistic cost now as well. But the reality is 38 00:01:45,120 --> 00:01:48,280 Speaker 1: this is this is just inflation and doing what the 39 00:01:48,360 --> 00:01:50,920 Speaker 1: plan said, you know, people wanted done. 40 00:01:51,160 --> 00:01:54,320 Speaker 2: Andrew, is it possible to get out of these contracts 41 00:01:54,480 --> 00:01:56,960 Speaker 2: without just you know, all kinds of ridiculous stuff like 42 00:01:56,960 --> 00:01:58,880 Speaker 2: break fees and sun costs and stuff like that. 43 00:02:00,120 --> 00:02:02,360 Speaker 1: No contracts have been signed, so there's no exit cost 44 00:02:02,400 --> 00:02:04,240 Speaker 1: to there's no contract to get out of, so there's 45 00:02:04,240 --> 00:02:06,440 Speaker 1: no exit cost. What we have got is an agreement 46 00:02:06,480 --> 00:02:12,760 Speaker 1: with Wakakatai New Zealand Transport Agency on doing that project. 47 00:02:13,639 --> 00:02:16,639 Speaker 1: And if we change anything on that, I mean, obviously 48 00:02:16,840 --> 00:02:20,920 Speaker 1: we lose funding, but we also lose Americ kind of 49 00:02:20,960 --> 00:02:23,480 Speaker 1: goodwill or good faith. But entering into the next contract 50 00:02:23,520 --> 00:02:26,280 Speaker 1: and we actually need to maintain that relationship with NCTA. 51 00:02:26,639 --> 00:02:30,359 Speaker 1: We've got some big projects scheduled for Wellington now too 52 00:02:31,440 --> 00:02:34,960 Speaker 1: and we need to maintain that relationship. So a lot 53 00:02:35,000 --> 00:02:38,400 Speaker 1: of boards that we're juggling in the air, but the 54 00:02:38,400 --> 00:02:41,520 Speaker 1: bottom line is Wellingtonians can't take on any more cost 55 00:02:41,680 --> 00:02:44,160 Speaker 1: and we've got to get a right, the right result 56 00:02:44,200 --> 00:02:45,639 Speaker 1: for Wellington, right Andrew. 57 00:02:45,680 --> 00:02:47,639 Speaker 2: Thank you as always, Andrew little Mior of Wellington. 58 00:02:48,639 --> 00:02:51,799 Speaker 1: For more from Hither Duplassy Allen Drive, listen live to 59 00:02:51,919 --> 00:02:54,960 Speaker 1: news talks. It'd be from four pm weekdays, or follow 60 00:02:55,000 --> 00:02:56,760 Speaker 1: the podcast on iHeartRadio.