Chamber of Commerce urges greater pace of rebuild and 'release' of assets

Monday, 16 April 2018

Many parts of central Christchurch still look like this.

The Canterbury Employers' Chamber of Commerce is urging Christchurch city councillors to take a bolder and more innovative approach to delivering services and asset rebuilding in the long term plan.

But its proposals are familiar – co-ownership of assets, targeted rates, more aggressive rates, and more funding of central city events.

The chamber's chief executive, Leeann Watson, launched the group's submission with a plea for councillors and staff to change the way they think.

'There is a fundamental disconnect between the stated vision for Christchurch, and the proposed draft long term plan.'

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Canterbury Employers' Chamber of Commerce chief executive Leeann Watson.

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The service delivery and preferred level of asset maintenance and development did not live up to the council's vision, nor the level Christchurch's citizens should expect as the country's second biggest city, she said in the submission.

Watson described the long term plan as backward looking rather than focusing on future services and economic development.

'We agree with the mayor that 'rates revenue is a finite resource and we do need to consider new and different sources of funding'.'

Watson cited the example of Perth, which maintained an 'exemplary' library service but no longer owned the buildings it was in.

Antony Gough's hospitality development, The Terrace, is helping boost the city centre but businesspeople want more council action.

And the Dunedin City Council had recently proposed sales of $86 million of commercial properties to invest in new initiatives.

'Even within the current options developed under the status quo approach we would have hoped the council consider all options available to fund the 'high' scenario (finding an additional $2 billion needed) if it is the best it can do for Christchurch, its people and its future,' the chamber's submission said.

The options considered by the city council involved varying service levels, and rates increases ranging between 5 per and 6 per cent over the coming decade, with net debt peaking between 2024 or a decade later under the most aggressive option.

'The ongoing limited council revenue base cannot enable both the repair of the city and investment in new initiatives in an effective timeframe,' Watson said.

The first central city east frame apartments are being built by Fletcher Residential as part of the post-2011 earthquake recovery programme.

'We suggest that Christchurch City Holdings be directed to provide advice on how to repackage its investments to maintain services while also releasing capital for new investments. All options should be on the table for consideration and discussion – strategic partners in appropriate assets, or a mixed-ownership model.

'We would welcome more certainty around the implications from the red zone's future development, negotiations with the Government on the cost sharing settlement on the nature and timing of the remaining anchor projects that the city is desperate for.'

One of the anchor projects under possible negotiation is a multi-sport arena rather than separate ones for different sports.

'This continuing uncertainty is unsettling for businesses already here and may be a barrier to attracting new businesses.'

The chamber was particularly concerned about slow population growth.

'The current plan describes a very low population growth scenario, way below what will be needed to even create the revenue for optimal choices in the future,' Watson said.

'The current plan is sorely lacking in identifying ways to attract new people. Without a forward focus on increasing the rates base, the current plan risks enabling a city into slow decline.'

The chamber asked what targets the council had set for its promotional quango, ChristchurchNZ, citing Dunedin's successful Ed Sheeran concert generating estimated revenue of $34m.

'We support the idea of targeted rates and would be interested to work to develop more meaningful options where the right people are targeted to pay for what they use.'

It also wanted reprioritising of shelved projects including river drainage to protect communities from floods, and completing transport projects that created the worst blockages across the city.