Will Christchurch sell assets?

The Press reports:

The path to asset sales is likely to be cleared this week as the Christchurch City Council takes steps to raise money for the rebuild.

Councillors are expected to hold a special meeting on Friday to adopt a financial strategy that deals with the potential $900 million funding shortfall the council is facing over the next few years.

Details of the strategy have yet to be made public but Mayor Lianne Dalziel said it would include a range of options to release capital from city-owned assets.

That could sit uneasily with the seven People’s Choice councillors, who all signed a pre-election pledge that promised all significant public assets would be kept in public ownership and control.

Dalziel had studied the pledge and believed councillors would not be breaking their word if they went down the route proposed.

She reasoned that if the council was to sell some of its Orion shares to the neighbouring Selwyn District Council (SDC), which already had an 11 per cent stake in the company, that pledge would still have been honoured.

Likewise, she saw no problem with inviting a strategic partner to buy a stake in Christchurch Airport or Lyttelton Port (LPC), provided the council retained its control.

You mean a mixed ownership model? Have the Council keep say 51%? Use the proceeds to reduce the need to borrow for other assets?

It sounds a very sensible idea. Of course it is the same idea National had in 2011, which Lianne campaigned against. If the Christchurch Council does agree to this policy, I expect Labour to of course condemn them and campaign against their decision!

Comments (12)

Login to comment or vote

Add a Comment