Minister not impressed with CAA relocation costs

Transport Minister Steven Joyce says he is "not at all impressed" with the $8.5 million cost for the Civil Aviation Authority to move from its current Petone location to a new, multi-storied building in downtown Wellington.

The rental costs in the new building will be considerably higher on a per square metre basis than the CAA's current facilities in Petone.

The decision to relocate was made last year, prior to the general election, and was supported by the then Transport Minister Annette King.

The move is scheduled for the end of next year.

"I am not impressed that these costs are being incurred to this level and at this time when New Zealanders are having to tighten their belts in the current global economic recession," says Mr Joyce. About 90% of CAA revenue comes from industry fees and charges, including the domestic passenger levy.

Mr Joyce says he has made his views on this matter very clear to the Civil Aviation Authority.

"I have tested the options to amend or not go through with this move over a period of time with the Chair of the CAA. Unfortunately commitments were made with the support of the previous government that are unable to be changed.

"The CAA has assured me that everything possible will be done to contain costs going forward from here."