Minister Defends Decision to Reallocate Kāinga Ora Funds for Local Bridge Project
Senior Minister Chris Bishop faced criticism for his decision to reallocate Kāinga Ora funds intended for stormwater upgrades to a walking and cycling bridge in his electorate, a project he had campaigned on.
As Housing and Transport Minister and Hutt South MP, Bishop agreed to the Lower Hutt City Council's request in March to reallocate funds for the CityLink Bridge, a project he had previously advocated for. Labour leader Chris Hipkins criticized this move, labeling it as a questionable and unaccountable shift of funds.
The CityLink Bridge, connecting Melling Railway Station to Lower Hutt city center, is part of the broader RiverLink project, which Bishop had championed. The funds in question were allocated through a Kāinga Ora Infrastructure Acceleration Funding agreement with the Lower Hutt City Council, aimed at enhancing water infrastructure to support housing developments.
Bishop characterized the fund reallocation as a pragmatic decision, initiated by the Lower Hutt City Council. He explained that the council approached him regarding an 'underspend' in infrastructure funds and requested the transfer to the CityLink Bridge.
"It's actually pretty straightforward," Bishop stated. "The council asked for it, and we agreed."
He noted that the government had granted a similar request from the Hamilton City Council the previous year, allowing them to redirect cycleway funds to water infrastructure. When questioned about potential conflicts of interest, Bishop argued that it was common for ministers to make decisions affecting multiple portfolios and electorates.
The Cabinet Manual advises ministers to exercise caution in assessing potential conflicts between their constituency interests and their ministerial duties. Bishop assured that Finance Minister Nicola Willis approved the Infrastructure Acceleration Fund variation, which he considered a sufficient safeguard.
However, Labour leader Chris Hipkins vehemently criticized the move, labeling it as a "very questionable process." He argued that it failed the sniff test, as it involved one minister transferring funds from one portfolio to another for a project he had campaigned on in his own electorate, which his government subsequently canceled.
Hipkins expressed that the government should not divert funds from stormwater upgrades to support a project it had canceled. He criticized Bishop's decision, suggesting that it was taking money from housing to fund a walking or cycling bridge.
Prime Minister Christopher Luxon, however, supported Bishop's pragmatic approach to the decision.
