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

 


Christchurch City Council releases milestone report

Christchurch City Council releases milestone report


Christchurch City Council today released a milestone report on options for managing the financial challenges and maximising the opportunities arising from the earthquakes.

The Cameron Partners report says the Council may need to find an additional $783 million to $883 million by 2019. The total amount of extra funding required will depend on issues such as the planning of anchor projects, spending on infrastructure repairs, and the level of insurance payments.

Options Cameron Partners proposed for closing the funding gap include increasing rates, borrowing more, maximising insurance payments, and freeing up capital from its commercial assets.

Mayor Lianne Dalziel commissioned the Cameron Partners report and the earlier KordaMentha report as part of an “opening the books” exercise to clarify the Council’s true financial position.

She says the latest report shows that, despite the tough choices ahead, the Council has a strong balance sheet.

“We have gross assets worth $8.3 billion, with $2.6 billion of that owned by our commercial arm, Christchurch City Holdings Ltd. But we also have reduced revenues as a result of the earthquakes, as well as unsustainably high debt levels. We can’t borrow any more.

“This means we must look at all available options to solve the potential shortfall in funding. We need to come up with a carefully considered and robust financial strategy that protects the future economic and social health of Christchurch.”

The Mayor says it is clear as well as other options, such as reducing operational spending and government assistance, releasing capital is the only way the Council can address uncertainty around its finances.

“From the financial reports we have received, and subsequent analysis of those reports, we would be looking at releasing up to $400million from CCHL. Measured against the $8.3 billion Council balance sheet, we believe this is a moderate but prudent proposal.”

She says the Council will be looking for options which ensure the city maintains strategic control of its key infrastructure assets – Christchurch International Airport, the Lyttelton Port Company and electricity supplier, Orion.

The Mayor says that before any decision is made about releasing capital from the city’s commercial assets, public consultation is vital. The period of consultation will begin on 4 September, the fourth anniversary of the earthquake sequence.

“Creating financial certainty will attract much-needed investment in the rebuild. We want to work alongside Canterbury Earthquake Recovery Authority (CERA) to scope the possibilities for a one-stop landing point for both local and foreign investors.

“This would help speed recovery by providing a long-term focal point for economic development and a clear and stable point of entry for private capital. It could also act as a focal point for joint venture, private and public investment and could take a proactive approach to development projects that can drive economic, social or special interest outcomes.”

The Mayor and CEO also intend to invite an expert advisory group/ think tank to work with the Council on developing a Long Term Plan that will shape the city over the next decade and beyond.

Council Chief Executive Karleen Edwards will also be working together with CERA and Treasury on a review aimed at resolving the outstanding issues about the timing of, and relative contributions to the repair of horizontal infrastructure. “In the spirit of cooperation we will be working closely with the Crown to ensure our budget processes and priorities are fully aligned and that they promote the regeneration of the city as a whole,” Lianne Dalziel says.

“Christchurch will be a safe haven and a place of opportunity where any thing is possible. We can’t afford to sit on the sidelines any longer. We need to make this happen. I am convinced that, with the support of all the communities that make up our city and central government standing alongside us, we can and will.”

A full copy of the report is available on the Council's website at www.ccc.govt.nz

- ends -


© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: A Govt. Christmas Bad News Dump -The Skycity Convention Center Blowout & A Negative MBIE Review

If the government really did have good tidings of great joy you can bet it wouldn’t be strewing them about at Christmas time – which is, traditionally, the dumping ground for terrible news that the government fervently hopes the public will be too distracted to notice. And so verily this Christmas Eve we learn of (a) the explosion of costs to the taxpayer and ratepayer of the vile SkyCity convention centre in Auckland and that (b) the government’s flagship MBIE “super-ministry” run by its Minister of Everything is a disaster zone of incompetence and mismanagement. MBIE is a Titanic looking for an iceberg, or so it would seem. More>>

 

Parliament Adjourns:

Greens: CAA Airport Door Report Conflicts With Brownlee’s Claims

The heavily redacted report into the incident shows conflicting versions of events as told by Gerry Brownlee and the Christchurch airport security staff. The report disputes Brownlee’s claim that he was allowed through, and states that he instead pushed his way through. More>>

ALSO:

TAIC: Final Report On Grounding Of MV Rena

Factors that directly contributed to the grounding included the crew:
- not following standard good practice for planning and executing the voyage
- not following standard good practice for navigation watchkeeping
- not following standard good practice when taking over control of the ship. More>>

ALSO:

Gordon Campbell:
On The Pakistan Schoolchildren Killings

The slaughter of the children in Pakistan is incomprehensibly awful. On the side, it has thrown a spotlight onto something that’s become a pop cultural meme. Fans of the Homeland TV series will be well aware of the collusion between sections of the Pakistan military/security establishment on one hand and sections of the Taliban of the other… More>>

ALSO:

Werewolf Satire:
The Politician’s Song

am a perfect picture of the modern politic-i-an:
I don’t precisely have a plan so much as an ambition;
‘Say what will sound most pleasant to the public’ is my main dictum:
And when in doubt attack someone who already is a victim More>>

ALSO:

Flight: Review Into Phillip Smith’s Escape Submitted To Government

The review follows an earlier operational review by the Department of Corrections and interim measures put in place by the Department shortly after prisoner Smith’s escape, and will inform the Government Inquiry currently underway. More>>

ALSO:

Intelligence: Inspector-General Accepts Apology For Leak Of Report

The Inspector-General of Intelligence and Security, Cheryl Gwyn, has accepted an unreserved apology from Hon Phil Goff MP for disclosing some of the contents of her recent Report into the Release of Information by the NZSIS in July and August 2011 to media prior to its publication. The Inspector-General will not take the matter any further. More>>

ALSO:

Drink: Alcohol Advertising Report Released

The report of the Ministerial Forum on Alcohol Advertising and Sponsorship has been released today, with Ministers noting that further work will be required on the feasibility and impact of the proposals. More>>

ALSO:

Other Report:

Leaked Cabinet Papers: Treasury Calls For Health Cuts

Leaked Cabinet papers that show that Government has been advised to cut the health budget by around $200 million is ringing alarm bells throughout the nursing and midwifery community. More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
Regional
Search Scoop  
 
 
Powered by Vodafone
NZ independent news