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New hospital build boss to get $2.5k a day

Evan Davies. Photo: supplied
Evan Davies. Photo: supplied
A corporate troubleshooter is being paid $2500 a day to lead the new Dunedin hospital’s build due to ministerial claims the project could drag down Health New Zealand Te Whatu Ora (HNZ) without his leadership.

Health Minister Simeon Brown launched a broadside at HNZ by this week appointing Todd Corporation chief executive Evan Davies as Crown manager of the project, using a law allowing a crisis management appointment in the event of HNZ ineptitude.

In a withering statement in the government’s Gazette that justified the appointment, Mr Brown repeatedly slammed HNZ.

It had "struggled to maintain momentum on the project and identify a path forward following consistent cost pressures and extensions to the estimated delivery timeframes for the project.

"These delays have also created delays and additional costs."

The minister concluded that the HNZ failings posed a risk to its ability to continue due to the size of the project, the fiscal risks and the impact on health services if "cost pressures are not adequately addressed and delivery is further delayed".

Simeon Brown. Photo: Peter McIntosh
Simeon Brown. Photo: Peter McIntosh
He used the Pae Ora (Healthy Futures) Act 2022 to appoint Mr Davies.

Section 63 permits a Crown manager to be appointed if the minister thinks there is a "risk to the operation or long-term viability" of HNZ.

Mr Davies, who can claim expenses on top of his daily rate, led the Auckland Sky Tower build for gas and property company Todd.

He was chairman of the new Dunedin hospital’s governance committee from December 2020 until June 2023, but resigned amid project problems.

In the Gazette, Mr Brown said Mr Davies would report to him and hold wide-ranging responsibility, included signing up a main contractor for the in-patient building by mid-September.

The role includes "negotiating the final contract for the main works package of the in-patient building and delivery of the implementation business case to cabinet for approval within the next three months".

Mr Davies was also responsible for determining the build. He would "deliver the construction scope and programme as it relates to the inpatient building (including reinstatement of additional capacity)", Mr Brown said.

The procurement of long-lead items, to maintain build momentum, also falls under his remit.

Mr Davies’ appointment has no fixed end, but would be reviewed annually and provide "strengthened client-facing leadership", the minister said. A final report would be required.

Last Saturday, Mr Brown announced changes to the Pae Ora Act, including making infrastructure a HNZ "core legislated function" and establishing an infrastructure committee.

At a select committee hearing yesterday, he made "no apology for utilising the private sector to get things done and ensure people get the care they need in a timely manner". He said remedying poor health infrastructure "will require multiple decades of investment".

HNZ is led by interim chief executive Dr Dale Bramley after Margie Apa stepped down this year.

His department had employed a programme director for the hospital build, but the role has been vacant since last November. Two programme directors with hospital-building experience have exited in recent years.

Blake Lepper, who joined HNZ as head of infrastructure delivery in March last year,is described by HNZ as the build’s senior responsible officer.

HNZ previously said it planned to use Crown Infrastructure Delivery — a company mandated to help struggling government agencies deliver infrastructure — to help with the build, but is unclear how.

mary.williams@odt.co.nz

 

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