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First PPP school opens in Auckland

Monday 4 Feb 2013 2:50 p.m.

Education Minister Hekia Parata announced the opening of Auckland's Hobsonville Point Primary School (Getty)

Education Minister Hekia Parata announced the opening of Auckland's Hobsonville Point Primary School (Getty)

The first school to be built under a public-private partnership (PPP) opened today and Labour says it's going to cost taxpayers more than the Government expects it to save.

Education Minister Hekia Parata announced the opening of Auckland's Hobsonville Point Primary School, which was designed, built and financed by a PPP consortium.

The consortium will be responsible for maintaining it for 25 years.

Labour, which opposes PPPs, says the Government expects it will save $2 million over the 25-year life of the contract but has already spent $3.5 million developing the business case for the school.

"Her so-called savings are actually costing taxpayers $1.5m," said acting education spokesman Chris Hipkins.

"And it gets worse - the Government is also forking out $100,000 a year for a `Relationship Manager' as part of the PPP pilot.

"Over the course of the 25-year contract that would add up to another $2.5m."

NZN

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