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Govt awaiting own review of Korda Mentha report

Hon Gerry Brownlee

Minister for Canterbury Earthquake Recovery

7 May 2014 Media Statement

Govt awaiting own review of Korda Mentha report

Canterbury Earthquake Recovery Minister Gerry Brownlee says the Crown has concerns about some of the assumptions made in the Korda Mentha report on the financial position of Christchurch City Council, released today, and the accuracy of some of the data incorporated in the report.

“For those reasons on April 30 the Canterbury Earthquake Recovery Authority (CERA) asked financial consultants Morrison Low to provide their independent assessment of how the council’s financial position, as presented in the Korda Mentha report, relates to the Crown’s role in the rebuild.

“Korda Mentha then only provided Morrison Low with access to the latest version of their report yesterday, 6 May.

“We expect to receive Morrison Low’s report in about 14 days and will be in a position to respond after that.

“Constructive discussions have taken place between CERA, Treasury and council officials on drafts of the Korda Mentha report in Wellington and Christchurch in recent weeks, and I had hoped the council and the government could have presented a joined up response to the final report.

“Releasing the report today raises many more questions than we are presently able to answer.

“It should not be forgotten that the cost sharing agreement was approved by both Christchurch City Council and Cabinet.

“As the government is not in a position to make a fully informed comment on the Korda Mentha report it is disappointing the council has chosen to release it,” Mr Brownlee says.


ENDS


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