Christchurch city councillors have decided not to progress a business case that could have seen assets like Christchurch Airport and Lyttelton Port partially sold off.
Instead of giving its investment arm Christchurch City Holdings Limited (CCHL), which oversees the city's assets, a more flexible mandate, councillors decided at Wednesday's meeting to allow CCHL to lift portfolio returns over time through stronger oversight of capital management, and operational improvements.
The decision follows a letter from the chair of CCHL that laid out options for how the CCHL portfolio could deliver greater intergenerational value, and a more sustainable dividend flow to the council.
Mayor Phil Mauger said the previous council had initiated a review of CCHL's objectives and purpose, exploring ways to augment its support to the city.
“This process started back in 2021 when the previous council asked the CCHL Board to consider whether its purpose and strategic objectives were still relevant, or whether they could be enhanced to provide more support to the city.
“We all agree that our assets could be delivering significantly more value than they currently are. The work done to date now means we have a much clearer understanding of the current position of CCHL and its portfolio, along with an option for how we can lift returns without changing CCHL’s mandate or operating model.
“Over the last 30 years this city has built up a valuable investment. We have a duty to manage that investment appropriately, so that we preserve and maintain the public interest in accessing sustainable, inclusive and affordable economic infrastructure assets.
“It was a strong debate and a close vote, but the council has decided not to continue the business case and that work will now end. I am sure that CCHL’s enhanced status quo will see an improved result for our city.”
