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Home / Business

Christchurch Rebuild: Dunking the doughnut theory

Fran O'Sullivan
By Fran O'Sullivan
Head of Business·NZ Herald·
24 Mar, 2014 03:15 PM4 mins to read

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Earthquake Recovery Minister Gerry Brownlee. Photo / Jarrod Booker

Earthquake Recovery Minister Gerry Brownlee. Photo / Jarrod Booker

Fran O'Sullivan talks to Earthquake Recovery Minister Gerry Brownlee about the rebuild.

Earthquake Recovery Minister Gerry Brownlee is up for the challenge to keep the momentum on the Christchurch rebuild going by constantly showing "flags of progress" because that "helps everybody keep buoyant".

Brownlee has crossed swords with Opposition politicians and local critics over the pace of the rebuild. "You would expect a degree of dynamic between elected people at local and central level," he says diplomatically. "It would be a problem if it was not there.

"It is a challenge to keep that contest in perspective."

The Government's relationship with the Christchurch City Council now appears to be going from strength to strength as work on some of the Anchor projects ramps up as part of the Recovery Plan.

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The Government is stumping up $481 million to build The Frame; a further $284 million for the Convention Centre Precinct and $89 million for the Avon River Precinct. Overall it will contribute $2.9 billion (including land).

But the council is taking the lead on other projects such as The Stadium ($253m); the Metro Sports Facility ($147m) and the Performing Arts Precinct ($158m). In all, council will contribute $1.9 billion.

The dollars involved are staggering. But Brownlee cautions that getting the operating model right for some of these big-ticket projects is far more important than construction costs ("once you have built it you are stuck with it").

"You want to have usage from Day One when the doors open," he says.

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The Government has moved to mitigate risk by starting the operational side for the Convention Centre ahead of the build.

"If they can start getting forward business or having an indication, then that will give private investors who might want to look at that site for a hotel a headsup that there is an opportunity and to come into town."

He says the same rule applies to the Metro Sports facility which is "probably, after the Avon River Precinct, the most important in the city."

"It's easy to go out and say we'll have 10 pools and 10 courts but unless you know how it's going to operate and what its potential cashflows are then I think you are stabbing in the dark.

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"One thing that happens in cities all around the world is that local authorities and governments build big projects and then ratepayers or property taxpayers struggle to pay for it."

Brownlee believes the city is now taking problems such as the increased vulnerability to flooding in its stride. "We're well down the track on that to make the city a very liveable place."

What gives him added confidence is the increase in the number of residents in Christchurch. "Three years ago we were facing substantial depopulation in Canterbury, but the Census has shown us that far from that we've had a 2.6 per cent population growth. That is 12 months ago and evidence is the city is growing at a faster rate."

"So, if you have the economic stimulus for I believe over a decade out from the rebuild and you have an eye to the future for the economy of the region then I think that population growth will continue. That will secure the validity of the CBD."

To dispel any doubts, Brownlee flourishes a Cera map which illustrates the new commercial buildings springing up in the CBD as proof that the city is not a "doughnut" with all the activity taking place on the outside.

Brownlee says he gets quite disheartened when he hears people say the Government doesn't care about Christchurch. "We haven't 'nickelled and dimed it' and don't intend to," he says.

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He stresses that given the economic potential of the Canterbury Plains, "it is an absolute no brainer that this city has to be put back in as good a situation as possible.

"I've had a real focus on that with other ministers on the agribusiness potential of the Canterbury plains. We have our irrigation fund. Nine of the 10 projects funded so far are out of Canterbury or South Canterbury."

As for business, he believes the opportunities are huge..

"You've only got to look at who's operating in Canterbury and who's coming in - particularly in services such as engineering and design."

It's been a tough three years for the Cabinet Minister charged with the Canterbury Recovery. But Brownlee doesn't believe there will be any huge change of emphasis if the Government changes at the September 20 election.

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