Legal woes could cloud Sky City deal
Thu, 14 Jun 2012 5:27a.m.
By Peter Wilson and Laura McQuillan
The Government could end up with serious legal problems if it signs a deal with Sky City for a new convention centre while the auditor-general's office is investigating the tender process, Labour says.
Deputy Auditor-General Phillipa Smith on Wednesday announced the inquiry into the process the Ministry of Economic Development (MED) followed in 2010 when it chose Sky City to build the $350 million centre.
It will build and run the centre in exchange for a law change allowing up to 500 more pokie machines in its casino, and details are being thrashed out with the ministry.
The Government says negotiations will continue despite the inquiry and it's possible the deal could be concluded before Ms Smith's report is filed.
Labour's economic development spokesman, David Cunliffe, says the Government is defying the auditor-general's office.
"National's so-called tender has been rotten from the start.
"Pushing ahead with this shady deal is unacceptable, it must be put on hold and the government must co-operate with the inquiry."
Mr Cunliffe told NZ Newswire the Government could be in trouble if it signed the deal and Ms Smith subsequently reported the tender process had been illegal.
"One of the tenderers, including organisations like Infratil, the ASB Bank and Auckland City Council, could take advice on actions like a judicial review which could nullify the contract," he said.
"And if the contract was nullified the successful tenderer - Sky City - might have grounds to claim breach of contract."
Economic Development Minister Steven Joyce, and Prime Minister John Key, say they're confident the investigation will show the MED followed proper process.
Labour and the Greens say it was a stitched-up deal and Sky City was chosen because it was prepared to put up all the money for the centre.
Post a Comment
Before commenting, please take the time to read our moderation guide
(Won't be published)
14/06/2012 12:47:43 p.m.
Go and do some constructive work you Labour people and stop your destructive actions against the betterment of NZ as a Nation. This is a great deal for both Auckland and NZ so stop your whinging and get on with some proper work.
14/06/2012 11:45:46 a.m.
@Lola have you heard of travel?
Doesnt matter where the pokies are located... a bad idea is still a bad idea.
And Auckland COuncil doesnt need to foot the bill, it could easily be retendered... to private interests with far more integrity than Skycity.
National has shown aus that legislation is for sale however... and thats corrupt.
14/06/2012 11:05:34 a.m.
Grow up people I don't want Auck City Council running this I pay enough rates now.Sky City is willing to build and run this complex.Yes more pokie machines in the city NOT OUT IN the suburbs.
McDonald's workers striking will be a waste of time if a strike-breaking bill pa...
The NZTA is being accused of wasting taxpayer money, spending tens of thousands ...
Labour MPs are being called hypocrites for accepting Sky City's invitations to w...
ACC levies have gone down under this government, but at what cost? A prominent w...
The Prime Minister has dodged questions all week about whether New Zealanders ar...
Copyright © 2013 MediaWorks TV. All Rights Reserved.