Press Release 2021 demands Public Consultation over Lyttelton Port Deal
2021 fears privatisation of City Assets. 2021 submission on the LTCCP
Christchurch 2021, fears that the City Council is attempting to privatise key strategic assets by stealth said their Chairperson, Carl Pascoe in the 2021 submission on the LTCCP.
Christchurch City has a proud record of retaining assets in public ownership and has a policy of "not to sell any trading enterprise or any of the city's cultural, sporting or recreational assets or any public rental housing or elderly persons housing except where such assets are surplus to the city's needs".
(Council, 21 September 1992)
The chairperson, Carl Pascoe said "It is of great concern to us that under the policy of significance in the LTTCP, Council has revised the 2004/06 LTCCP and made at least five major changes. Those changes include reference to a possible change in future ownership of Jade Stadium, the deletion of Red Bus Ltd and City Care from the City's list of Strategic Assets, and the description of ratepayer holdings in the Council's Strategic Assets has been changed from simply "its equity in" to "its controlling equity"."
Mr Pascoe said "There is no reference at all to the Significance Policy and the changes to it in the Summary Document which is the main document the community is using to inform themselves about the LTCCP. We consider this omission to be very serious. The Council's asset holding and significant activities to which the policy refers to is of great importance to all the community."
The removal of Red Bus Ltd and City Care Ltd was a decision, sought from the Council by CCHL. In CCHL's view neither of these companies is considered a strategic asset because "if market conditions caused it to put them up for sale, there would not need to be public concern since there are other companies which could provide the service needed." (Council Agenda, 2.2.06).
Christchurch 2021 does not accept this argument. It could be applied also to the Orion network and to Christchurch Airport, since they would find eager buyers who would continue to operate them.
"Our perception is that, despite denials to the contrary, the intention behind the removal of City Care and Red Bus from the strategic assets list is to facilitate the sale of these enterprises at some time in the future without having to submit the proposal to the public via the Special Consultative Procedure. This is a stealthy approach and flies in the face of a transparent and open democracy."
Mr Pascoe said that "2021 requires the Council to provide assurance to the people of Christchurch that it has no intention of selling Red Bus or City Care by restoring these companies to the list of Strategic Assets."
"Our most significant concern is that the change in description of ratepayer holdings in the Council's strategic assets from "its equity in" to "its controlling equity" has not been stated in the Changes to Policy section of the LTCCP" he said. This wording change is a significant departure from the wording in the 2004/06 LTCCP and one which alters the protection afforded to shareholders under the definition of significance in the Local Government Act 2002.
With this change the Council could sell down its 100% shareholding in Christchurch City Holdings Ltd, and/or its 87% shareholding in Orion, its 75% shareholding in CIAL and its 73% shareholding in LPC to 50.1% without invoking the Special Consultative Procedure. Already we have witnessed CCHL attempting to do this very thing, possibly illegally, in our view, with its announced intention to sell 49.9% of LPC to Hutchison Port Holdings, an international port operator. Council must remember that these assets are public assets, which have been built up over many years, and their rightful owners deserve a say in any significant sell down of them, as the Local Government Act 2002 intended they would" said Mr Pascoe
This can only be done when the real owners, the rate payers of this city have the full picture of the impacts and this can only be done through a formal public consultation.
2021 encourages all ratepayers of Christchurch to use the avenues available to them to call for public consultation over any sale of council assets or change in their equity levels.
For Further Comment:
David Close
Chairperson 2021
388 0151
