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Home / New Zealand

Christchurch Stadium: The council made the right decision but unconvinced on fixed price

John MacDonald
By John MacDonald
NZ Herald·
14 Jul, 2022 09:00 PM4 mins to read

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Christchurch City Council approved $683m Canterbury Multi-Purpose Arena. Photo / Brett Phibbs

Christchurch City Council approved $683m Canterbury Multi-Purpose Arena. Photo / Brett Phibbs

John MacDonald
Opinion by John MacDonald
John MacDonald is the Canterbury Mornings host on Newstalk ZB Christchurch
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OPINION:

So a monumental decision by the Christchurch City Council yesterday, with a 13-3 vote in favour of spending another $150 million and getting on with the job of building the new Te Kaha stadium.

As we know, it followed the announcement last month that there'd been a budget blowout, pushing the price tag up to $683 million.

I think the council made the right decision yesterday and I'm delighted that this thing is actually going to happen. No one could argue that it's ridiculous that it's taken this long to get to this point - but I'm right behind it. Even though there are some aspects that I'm still not completely comfortable with.

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The so-called fixed-price contract with the Australian construction and civil engineering company running the project - I'm still not convinced that's going to happen.

As we heard this week, the board overseeing the project has managed to negotiate a deal which makes Besix WATPAC responsible for the costs of labour and materials - as well as carrying the can for all other risks and cost overruns.

I just can't see - in light of everything that's happened over the past couple of years - how a fixed-price for a project four years out from delivery is realistic. Happy to be proven wrong, but that's how I feel about that part of it.

The other thing I think is nuts, is the fact that Selwyn and Waimakariri councils aren't putting any money into it.

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As I've said all along, the stadium is a regional project. And it will deliver benefits for people not just living in Christchurch.

Remember, for example, that nearly half of the people who live in Selwyn come into Christchurch every day to go to work or go to school. So they should have skin in the game when it comes to the stadium, because they will benefit from it.

And there's been no shortage of people from Selwyn and Waimakariri saying they'd be more than happy to contribute.

But I'm now actually starting to wonder whether these other councils haven't been asked yet because Christchurch wants to keep them up its sleeve - just in case.

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What if the whole fixed-price thing goes pear-shaped and the council needs to find more money? The contractors were told very clearly the other day that there'd be no more money coming from Christchurch ratepayers. So perhaps Selwyn and Waimakariri are being kept out of it for now, in case they need to become a bit of a financial lifeline down the track.

Just a thought.

Nevertheless, even though I've still got my misgivings about the financial side of things, overall - I am delighted with yesterday's decision.

Yes, it should've happened sooner. Yes, the city was stupid to turn down the Government's offers to take over the project all those years ago. But thank goodness it is finally happening.

Crusaders CEO Colin Mansbridge makes some very good points about yesterday's decision in a piece he's written today for nzherald.co.nz. Of course, he's delighted too that it's going ahead - but he also tips his hat to the people opposed to the stadium, for their role in the community's debate about it.

And I want to pick up on that and make mention of the three city councillors who yesterday voted against putting in the extra money - Melanie Coker, Sara Templeton and Celeste Donovan.

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Coker's concerned about the impact the rates increase needed to pay for the stadium will have on people on fixed incomes. Templeton voted against it on behalf of the people who don't want more financial burden on the city. And Donovan thinks there are more important things the council should be spending money on - Bromley being one of them.

I had actually thought there might have been a couple more who would vote against. But they're the three who did, and I want to congratulate them for doing it. Because it is never easy going against the tide - and the tide was well and truly against them in the council meeting yesterday.

In fact, not just in the council meeting. In the submission process and in the commentary from all the heavyweights in the business, tourism, hospitality and sporting sectors.

So - even though I'm a stadium supporter - well done Melanie Coker, Sara Templeton and Celeste Donovan for taking a stand and not getting lost in all the noise. And good on you for being true to yourselves.

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