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

Issue 49: Werewolf Weekender

Philip Matthews: From The Lost Continent
It’s a case of better late than never for Olivier Assayas’ marvellous After May/Apres Mai, which first screened at Venice in 2012, had a couple of North Island screenings last year during the International Film Festival’s “Autumn Events” season, got a theatrical release in Australia – but not here – and only now appears on DVD, after Assayas himself has moved on. More>>

The Complicatist: Blue Eyed & Soulful
For a while in June, the top two singles on the US Billboard charts featured Iggy Azalea, an Australian model turned hip hop performer. To some, this may seem like just the latest chapter in a long saga of whites ripping off black culture, while enriching themselves in the process. Obviously, there’s some truth in the stereotype. Yet it can also obscure the positive collaborations – in jazz, soul music and hip hop – between musicians who treated each other as creative equals, race regardless. More>>

Satire: Carry On Captaining
Oh hello. Scanner Technician Davis. To what do I owe the pleasure?
You think we’re what?
Oh, pish. This vessel has been travelling along smoothly for generations – particularly smoothly in the last few years though I say so myself – and I happen to know we have never once been hit by an asteroid... More>>

 

Parliament Today:

False Electoral Return: John Banks Sentenced To Community Detention, Community Work

“The conviction of John Banks today is another sad chapter for John Banks and the ACT Party”, says Labour candidate for Epsom Michael Wood. More>>

ALSO:

Gordon Campbell: On The Rise Of ISIS And Labour

While global attention got distracted by the fate of MH17 and the atrocities in Gaza, the world’s other mega ‘bad news’ story – the rise of ISIS-led fundamentalism in Iraq – has reached a tipping point. More>>

ALSO:

Rebuild: Christchurch City Council Releases Milestone Report

The Cameron Partners report says the Council may need to find an additional $783 million to $883 million by 2019... Options Cameron Partners proposed include increasing rates, borrowing more, maximising insurance payments, and freeing up capital from its commercial assets. More>>

ALSO:

Parliament Today: Parliament Adjourns

The 50th Parliament has adjourned for the final time. After the completion of the adjournment debate, MPs left for the campaign trail with Parliament to be dissolved on August 14 ahead of the September 20 election. More>>

ALSO:

Novopayout: Government-Owned Company To Take Over School Payroll

After lengthy negotiations, the Ministry of Education and the existing school payroll provider, Talent2, have settled both on the amounts payable by Talent2 towards the costs of remediating the Novopay service and a new operating model for the school payroll system. More>>

ALSO:

Employment: Labour Will Raise Minimum Wage, Restore Work Rights

A Labour government will raise the minimum wage $2 an hour to $16.25 and restore work rights to ensure the benefits of economic growth are shared fairly by all New Zealanders, Labour Leader David Cunliffe says. More>>

ALSO:

Police: Crewe File Review Released

No new evidence has come to light implicating any specific person as being responsible for the murders of Jeannette and Harvey Crewe... The review identifies there is a distinct possibility that Exhibit 350 (the brass .22 cartridge case) may be fabricated evidence, and that if this is the case, that a member of Police would have been responsible. More>>

ALSO:

Werewolf Issue #49: Gordon Campbell Interviews Laila Harre

For 25 years, Labour and National have been in virtual agreement about the basics of economic policy, and differed mainly on how to go about managing its social consequences. More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
Regional
Search Scoop  
 
 
Powered by Vodafone
NZ independent news