Cabinet has quietly decided not to progress with further investigations into purpose-built MIQ facilities while work on long-term contracted facilities is on hold until the Royal Commission on the Covid-19 response reports back next year
When the final three MIQ facilities went offline in late June last year, the Government still had work to do on future quarantine capabilities.
At the time, as Newsroom reported in November, it cobbled together an interim readiness plan to restore 1500 MIQ rooms in four weeks if the pandemic were to take a bad turn or another health emergency arise.
However, it also continued work on a longer-term strategy to develop an "evolving portfolio" of contracted facilities and tools, signed off by Cabinet in December. Notably, ministers decided not to progress with work on purpose-built facilities. Since December, Health Minister Ayesha Verrall told Newsroom, all quarantine work has now been paused to await the results of the Royal Commission into the Covid-19 response.
READ MORE: * Plan to restore MIQ if needed * Is New Zealand ready for the next pandemic?
"Prior to 1 July, and in collaboration with MBIE, the ministry had undertaken some preliminary scoping of work related to the strategy, including a draft outline and some potential content. As the Royal Commission may possibly have views on MIQ and the future of [isolation and quarantine, the ministry does not intend to finalise the strategy until after the Royal Commission has completed its report (scheduled for mid 2024)," Verrall said.
"Having a [quarantine and isolation] capability will form part of New Zealand’s preparedness for future infectious disease events up to and including pandemics. However, the use of any such capability will always depend on the specific circumstances of the event being faced. As instructed by Cabinet, the future-facing capability will also consider the potential for alternative uses, for example if accommodation facilities might also be appropriate for use in other situations."
A trove of documents released by the Ministry of Business, Innovation and Employment (which had responsibility for MIQ until July this year) shows Verrall did initially push last year for a business case into purpose-built facilities.
While an earlier business case identified three options – sticking just with the readiness plan, developing a long-term plan and investing in a portfolio of contracted quarantine facilities, or doing all of that and constructing purpose-built facilities – it found the middle one was "significantly less expensive, less risky to deploy, and preserves the Crown’s options and reduces the risk of regretful spend".
From that, three options were developed to Cabinet. The first two were unchanged from the business case, while the third would just initiate further investigation of purpose-built facilities. In late November, a briefing noted Verrall supported the third option, while officials at MBIE and the health agencies supported option two.
"The Treasury has indicated that it does not support option three, due to the significant fiscal costs and risks, for uncertain marginal benefit over the other options. We understand the Minister of Finance is also keen to minimise spend below the initial $11 million cost for option two that was included in the previous version of the paper," officials added.
In the end, Verrall took a paper to Cabinet in December recommending option two, with the possibility that an investigation into purpose-built facilities could be launched at a later date. Ministers approved that proposal.
Cabinet minutes show $3.7 million was allocated to support the ongoing development of the MIQ readiness plan and the long-term strategy document. Verrall said work on the strategy would be continued after the Royal Commission provided its report.
Separately, advice from September last year shows the Government's decision to strip MIQ-related powers from the Covid-19 legislation could more than double the time it would take to stand up a "minimum viable product" for hotel quarantine if needed.
The readiness plan suggests it would take four weeks to organise 1500 rooms in Auckland and Christchurch in the event they were needed. But official advice to ministers on changes to the Covid-19 legislation says that timeframe would be "pushed out three-four weeks" further because of the need to pass new powers under urgency.
