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 National Leadership “Contest”

Key’s endorsement of English has turned this “contest” into a race for second place.

This succession was well planned. Lets not forget that English was told by Key in September of his intention to resign, and English was the only member of Cabinet entrusted with that information before it was sprung on everyone else on Monday morning. More>>

Latest: Judith Collins and Jonathan Coleman have withdrawn from the leadership race, leaving Bill English the only candidate to replace John Key as Prime Minister.

 

Education, Marketing, Taxes: Health Groups Call For Actions For Sugary Drinks

The New Zealand Dental Association is launching a new consensus statement on Sugary Drinks endorsed by key health organisations. The actions seek to reduce harm caused by sugary drinks consumption. More>>

ALSO:

More Departures? David Shearer Proposed For UN Peacekeeping Role

Mt Albert MP David Shearer is being proposed for a demanding and exciting role heading the United Nations peacekeeping force in South Sudan, says Labour Leader Andrew Little. More>>

ALSO:

Security Agencies' Reports: GCSB Wants To Give ISPs More Power To Block Threats

The Government Communications Security Bureau wants to give internet service providers more information and power to block cyber threats which are increasing, its director told the intelligence and security select committee yesterday.. More>>

ALSO:

Education: Charter Schools Misleading Pass Rates

Labour: NCEA results for charter schools have been massively overstated... In one case a school reported a 93.3 per cent pass rate when the facts show only 6.7 per cent of leavers achieved NCEA level two. More>>

ALSO:

Rebstock Report Resolution: SSC Apologises To Derek Leask And Nigel Fyfe

Following a complaint by Mr Leask, the Ombudsman found that the State Services Commission acted unreasonably in relation to Mr Leask and identified numerous deficiencies in the investigation process and in the publication of the final report and in the criticisms it contained of Mr Leask... More>>

ALSO:

International Rankings: Student Results 'Show More Resourcing Needed'

NZEI: New Zealand had only held relatively steady in international rankings in some areas because the average achievement for several other OECD countries had lowered the OECD average -- not because our student achievement has improved. More>>

ALSO:

Earlier:

Salvation Army Report: Beyond The Prison Gate Report

A new Salvation Army report says changes must be made to how prisoners re-enter society for New Zealanders to feel safe and secure in their homes and communities. More>>

ALSO:

Surprise Exit: Gordon Campbell On The Key Resignation

The resignation of John Key is one thing. The way that Key and his deputy Bill English have screwed the scrum on the leadership succession vote (due on December 12) is something else again. It remains to be seen whether the party caucus – ie, the ambitious likes of Steven Joyce, Judith Collins, Paula Bennett, and Amy Adams – will simply roll over... More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
Regional
Search Scoop  
 
 
Powered by Vodafone
NZ independent news