Local Govt | National News Video | Parliament Headlines | Politics Headlines | Search

 


Christchurch Asset Sales Should Be Explored

Media Release: 29 May 2013

Christchurch Asset Sales Should Be Explored

Some Christchurch City Councillors have expressed an appetite for exploring the sale of some of the city’s assets as a way of helping fund the rebuild with a number of them not ruling it out.

Prime Minister John Key has suggested a partial asset sale of Christchurch’s council controlled organisations (CCOs) as a way of helping fund the city’s rebuild and planned anchor projects.

Christchurch City Councillor Jamie Gough said it was time the city reviewed what constitutes a strategic asset post-earthquake with a view to explore sale options for those that may no longer be deemed strategic.

Cr Gough said council’s share of the rebuild was going to have to be financed from rates, borrowing or the sale of city assets and that a healthy balance must be struck to ensure the highest quality rebuild but not at the cost of excessive levels of debt.

Gough ruled out an immediate sale of the council acquired central city properties from troubled property developer Dave Henderson.

“There is a lot of uncertainty in the central city right now but the one thing we do know is that inner city property prices have fallen to anywhere between one half to one third of where they were pre-earthquake. I have no doubt that it will rise stronger and better than before however the idea of buying high and selling low doesn’t hold much commercial appeal to me.”

Everything changed as a result of the earthquake on the 22 February 2011, and I think we’d be remiss, if not stupid, to not get clarity on where that leaves us with regard to strategic assets and strategic CCOs, Gough said.

Gough said that organisations such as Christchurch Airport, Lyttelton Port, Enable (data infrastructure) and Orion (power infrastructure) held a high strategic value in his view as they were key, monopoly infrastructure companies and their returns helped keep rates lower than most other metropolitan centres in the country.

“What I am less than convinced on is council owned contracting entities such as City Care or Red Bus which compete in an open and competitive marketplace.”

“Are non-monopoly contracting firms that cut the lunch of private-enterprise strategic assets for our city today? If they’re not, then what strategic value are they providing?”

Gough said that he supported the retention of strategic assets in city ownership however he believed that if you do not know what defines a key strategic asset in today’s new climate then it was impossible to be able to make that call.

“We could of course guess, and I have my own hunches and suspicions, but decision making by guesswork would be appalling governance and a road that I wouldn’t be prepared to go down.”

“We only get one shot at this rebuild and the decisions that are made today must be informed ones to ensure the greatest results, but not ones that end up disproportionally costing future generations.”


© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Greens: Russel Norman To Stand Down As Co-Leader

Green Party Co-leader Dr Russel Norman has announced today that he will stand down as leader at the party’s Annual General Meeting in May. Dr Norman will remain as Co-leader and retain his finance and climate change portfolios until the AGM.

“After nearly a decade as Co-leader, now is a good time to find a new challenge for myself, and to spend more time with my family” said Dr Norman.

“This is my ninth year as Co-leader and I think it’s time for a change. Now is a good time for new leadership for the Party. My replacement will start from a strengthened base and will have a full parliamentary term to establish himself in the role and take the Greens into government in 2017." More>>

 

Gordon Campbell: On The Eleanor Catton Rumpus

If anyone was in doubt about the accuracy of the comments made in India by Eleanor Catton, the reaction from some quarters here at home has gone a long way to proving her point… More>>

ALSO:

More Rent Assistance, Less State-Owned Housing: John Key Speech - Next Steps In Social Housing

"We are going to ensure that more people get into social housing over the next three years, whether that is run by Housing New Zealand or a community provider. The social housing budget provides for around 62,000 income-related rent subsidies a year. We are committed to increasing that to around 65,000 subsidies by 2017/18, which will cost an extra $40 million a year." More>>

ALSO:

The Future Of Work: Andrew Little - State Of The Nation 2015

In 2005 when I led the EPMU we worked together with Air New Zealand to find a way to keep engineering jobs that were heading overseas. A lot of these workers were people I’d known for years and they were facing not just losing their jobs but not being able to find the kind of work they do without going overseas. A lot of people were facing personal and financial upheaval.... More>>

ALSO:

Gordon Campbell: On The Sabin Case, The Pressures On Greece And (Songs About) Coyotes

Mike Sabin is a National MP, and the current chairman of Parliament’s law and order committee. Yet reportedly, he is being investigated by the Police over an assault complaint... However, the PM will not comment on any aspect of the story. More>>

ALSO:

Houses, ISIS, King (& Catton): PM Post-Cabinet Press Conference

The Prime Minister met with reporters to discuss: • Social housing, the Auckland housing market • The prospect of joining international forces to combat ISIS • David Bain’s compensation • The lowering of the flag for the King of Saudi Arabia's death ... More>>

ALSO:

Gordon Campbell: On Tomorrow’s Speeches By John Key And Andrew Little

The Key government has already kicked off the political year on a stridently ideological note, with Environment Minister Nick Smith choosing to lay all manner of sins at the door of the RMA. Tomorrow, the government will wheeling out its best salesman – Prime Minister John Key – to sell its plans for state housing… . More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
Regional
Search Scoop  
 
 
Powered by Vodafone
NZ independent news