1 00:00:00,200 --> 00:00:02,440 Speaker 1: Should we be a little worried this morning about the 2 00:00:02,480 --> 00:00:06,880 Speaker 1: business of business cases? David Siemil from ACT kicked up 3 00:00:06,880 --> 00:00:09,800 Speaker 1: of fuss about the Wycutter University Doctors School cost. He 4 00:00:09,880 --> 00:00:12,520 Speaker 1: said the cost was out of whack based on a 5 00:00:12,560 --> 00:00:15,480 Speaker 1: poor quality business case, and he seems to have been 6 00:00:15,560 --> 00:00:19,239 Speaker 1: proven correct, does he not? Why else would the cost 7 00:00:19,280 --> 00:00:22,119 Speaker 1: of the taxpayer have shrunk from two hundred and eighty 8 00:00:22,160 --> 00:00:24,960 Speaker 1: million dollars to eighty million dollars a two hundred million 9 00:00:24,960 --> 00:00:28,720 Speaker 1: dollar saving if he was right, and he's one guy 10 00:00:28,760 --> 00:00:32,200 Speaker 1: at the cabinet table. How many other business cases don't 11 00:00:32,240 --> 00:00:37,440 Speaker 1: stack up? There's an entire lucrative business case industry in Wellington. 12 00:00:37,520 --> 00:00:39,680 Speaker 1: Some of the workers done in house by government departments, 13 00:00:39,680 --> 00:00:41,879 Speaker 1: of course, but much of it is outsourced to the 14 00:00:41,880 --> 00:00:46,600 Speaker 1: private sector. Can we trust these reports? MB had a 15 00:00:46,600 --> 00:00:49,040 Speaker 1: business case train wreck a few years back. You might 16 00:00:49,080 --> 00:00:51,879 Speaker 1: remember this. They were calculating the benefits of hosting events 17 00:00:51,960 --> 00:00:56,320 Speaker 1: like the World Dance Championships, and questions from the media, 18 00:00:56,720 --> 00:00:59,360 Speaker 1: they went back and redid their sums. Realized they had 19 00:00:59,360 --> 00:01:04,000 Speaker 1: been in directly calculating the cost benefit analyses of events 20 00:01:04,040 --> 00:01:08,120 Speaker 1: for two years. More than a dozen applications had to 21 00:01:08,160 --> 00:01:11,800 Speaker 1: be fixed. We've recently had scraps over the benefits of 22 00:01:11,880 --> 00:01:15,120 Speaker 1: four laning, two fung aday and this is a problem 23 00:01:15,120 --> 00:01:17,920 Speaker 1: because if we can't trust the numbers we're basing decisions on, 24 00:01:18,120 --> 00:01:21,160 Speaker 1: then how can we make proper decisions. I hope the 25 00:01:21,200 --> 00:01:23,759 Speaker 1: Wykota Uni Med School is a success. They say it'll 26 00:01:23,800 --> 00:01:25,600 Speaker 1: train in extra one hundred and twenty doctors a year. 27 00:01:25,600 --> 00:01:29,280 Speaker 1: That sounds fantastic, but there are three signs this is 28 00:01:29,319 --> 00:01:32,560 Speaker 1: a risk of becoming a white elephant project for the government. 29 00:01:32,640 --> 00:01:35,920 Speaker 1: One other unis say they could have done it cheaper. Two, 30 00:01:36,080 --> 00:01:38,600 Speaker 1: Wykata Uni has tons of its own money and the 31 00:01:38,680 --> 00:01:41,160 Speaker 1: ability to tap into debt. Why aren't they funding it? 32 00:01:41,200 --> 00:01:45,120 Speaker 1: And three the business case was clearly a bit shonky 33 00:01:45,160 --> 00:01:49,120 Speaker 1: to begin with. For more from Early Edition with Ryan Bridge, 34 00:01:49,200 --> 00:01:52,680 Speaker 1: listen live to News Talks at b from five am weekdays, 35 00:01:52,920 --> 00:01:54,960 Speaker 1: or follow the podcast on iHeartRadio.