Council unlikely to sell off assets

CORDE is the only company the district council has full ownership of, but it is Orion that makes it the most money. Photo: Supplied

It seems unlikely Selwyn District Council will be selling any of the silverware as it begins formulating its financial future.

The district council currently has an AA credit rating (very strong) as it starts planning its economic and investment strategy.

Currently the district council owns $132,224,000 of shares in different companies.

Kelvin Mason.

District council enabling services group manager Kelvin Mason said all options will be considered when working through the Long-Term Plan next year.

“As far as asset sales, we have not had any discussion around asset sales, but we are only just starting the conversations around the Long-Term Plan.”

Mason said the district council has earned its strong credit rating due to good financial management meaning the district is in a positive financial position for the future.

It comes as Christchurch Mayor Phil Mauger now says he believes the city council will have to sell off some of its assets to keep rates down.

Don't sell the silverware Phil

The city’s assets are managed by Christchurch City Holdings Ltd.

Included in its portfolio is all of Lyttelton Port Company, 75 per cent of Christchurch International Airport, and 89.3 per cent of lines provider Orion New Zealand Ltd, of which the district council owns the other 10.7 per cent.

Selwyn Mayor Sam Broughton wouldn’t be drawn to comment on Mauger’s position.

“That’s really a question for Phil,” he said.

“Each council has its own strategic approach to its portfolio.”

CORDE is the only company the district council has full ownership of. PHOTO: CORDE

Broughton said the district council is always looking at alternative revenue sources to keep rates down.

Sam Broughton.

Unlike the city council, Selwyn does not have a separate company for investments.

Included in Selwyn’s portfolio is district council-owned contractor CORDE Ltd, of which the district council has full ownership ($24.1 million), $106.5 million of shares in Orion (10.7 per cent), with the rest owned by Christchurch City Council.

The district council also owns 3 per cent of Transwaste (Canterbury) Ltd, worth $1.5 million.

It is a minority shareholder in Central Plains Water Ltd ($437,000) and has 0.83 per cent ownership in New Zealand Local Government Funding Agency Limited (NZLGFA), at $187,000.

The district council’s investments provide $6.296 million in returns with Orion bringing back the most at $3.432 million, followed by CORDE with a $2.25 million dividend.

Smaller returns are made from Transwaste, at $605,000, and $9,000 from NZLGFA.

Broughton said the district council investment brings in more than money.

“Benefit is not measured in simply monetary terms.

“The social and wellbeing benefits of assets are considered carefully when managing our portfolio.”