Asset sales are shaping as a major issue for those submitting on the Christchurch City Council's proposed Long Term Plan.
Christchurch City Council Photo: SUPPLIED
The 10-year budget recommended $750 million in asset sales and rates rises of 28 percent over the next three years, to get on top of a $1.2 billion budget shortfall.
Six hundred of the 2000 people who submitted on the plan have asked to be heard, and last night began telling the council their views.
The top issue for all submitters was asset sales, and this was reflected in the submissions from the council's community boards.
Spreydon Heathcote Community Board chairperson Paul McMahon told councillors large projects the council had agreed to fund along with the government, such as a new stadium, were driving the need for asset sales and should be scrapped altogether.
"It just doesn't make any sense to sell income earning assets to fund things which don't earn income, and it's important to keep that income stream."
Lyttelton Mount Herbert Community Board chair Paula Smith told councillors her board was also opposed to asset sales because without the dividends the assets provided there would be a greater chance of the need for rates rises.
"That links back to the concern that was expressed at our community board about the impact on people on fixed incomes of not having the cushion that assets provide," she said.
Councillor Raf Manji said people were wrong to think that selling assets would leave the council out of pocket.
"There's this idea that when you sell something, you give something up. You're not, you're actually getting the cash today that you can use to invest. You're not going to get those dividends today, you're going to get those over the next 30 years."
Lianne Dalziel Photo: Christchurch City Council
At this point, the mayor Lianne Dalziel intervened and said nobody wanted to see a fire sale, or a wholesale sell down of the council's asset base.
She agreed with Ms Smith that people were frightened of this happening.
Ms Dalziel said the Bay of Plenty Regional Council's selling of a partial stake in Port of Tauranga was an example of the benefits that could come from asset sales.
"They now earn more than they earned by way of dividends. The share value went from $1.05 to $16.95 or something, you know, it's a massive increase in value to the region."
The council will continue hearing submissions over the next two weeks before coming out with a final draft of the Long Term Plan by the end of June.