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

Gordon Campbell:
On The Team Behind Trump's Throne

Forget the Putin factor. Daily, the team of charlatans, bigots and stunningly ignorant crackpots that Trump is appointing to head key federal agencies is just as alarming. These are positions with vast power and budgetary discretion over policies that stand to affect tens of millions of vulnerable Americans. Sad! More>>

 

Gordon Campbell: On Bill English, Abroad

If David Cameron was the closest thing John Key had to a political mentor, their successors also share a whole lot in common. Theresa May and Bill English were both propelled into the top jobs as the result of unexpected resignations, and without much in the way of credible competition from their colleagues... More>>

ALSO:

Pike River: Labour Bill To Override Safety Act For Mine Entry

“Bill English has been hiding behind the legal excuse that any attempt to re-enter the mine to recover the bodies might place the mine’s owner, Solid Energy Limited, and its directors in breach of the Health and Safety at Work Act 2015." More>>

ALSO:

Gordon Campbell: On Populism And Labour 2017

For many people on the centre-left, populism is a dirty word, and a shorthand for the politics of bigotry. In this country, it has tended to be equated with the angry legions of New Zealand First. Who knew they were not just a reactionary spasm, but the wave of the future? More>>

Oxfam: 30% Of NZ Owns Less Wealth Than Our Two Richest Men

The research also reveals that the richest one per cent have 20 per cent of the wealth in New Zealand, while 90 per cent of the population owns less than half of the nation’s wealth. The research forms part of a global report released to coincide with this week’s annual meeting of political and business leaders at the World Economic Forum in Davos, Switzerland. More>>

ALSO:

Hospitals: Resident Doctors Set To Strike Again

Despite discussions between the DHBs and NZRDA over safer hours for resident doctors progressing during the last week, the strike planned for next week appears set to proceed. More>>

ALSO:

Not So Super Fund: More Burning Ethical Questions For Steven Joyce

Greens: Radio New Zealand reported this morning that the New Zealand Superfund has $77 million invested in 47 coal companies that the Norwegian Government’s Pension Fund – the largest sovereign fund in the world – has blacklisted. More>>

Activism: Greenpeace Intercepts World’s Biggest Seismic Oil Ship

Greenpeace crew have made contact with the world’s biggest seismic oil ship after travelling 50 nautical miles on two rigid-hulled inflatables off the coast of Wairarapa... Greenpeace radioed the master of the Amazon Warrior to deliver an open letter of protest signed by over 60,000 New Zealanders. More>>

ALSO:

Gordon Campbell: Why Tax Cuts In 2017 Would Be A (Proven) Bad Idea

Ever since the world fell prey to the mullahs of the free market in the 1980s, no amount of real world evidence has managed dispel one key tenet of their economic faith. Namely, the idea that if you cut income taxes and taxes on small business, a wave of individual enterprise and entrepreneurial energy will thus be unleashed, profits will rise and – hey bingo! – the tax cuts will soon be paying for themselves ... More>>

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
More RSS  RSS
 
 
 
Regional
Search Scoop  
 
 
Powered by Vodafone
NZ independent news