Christchurch staff laid off to make way for footpath

For more than 85 years, Team Hutchinson Ford has run a successful car dealership in central Christchurch. Photo / Geoff Sloan

A business that stayed loyal to post-quake, inner-city Christchurch laid off staff after the Government's rebuild agency sought the site for a footpath.

For more than 85 years, Team Hutchinson Ford has run a successful car dealership at a two-acre site spanning St Asaph and Tuam Sts.

The company continued trading in the flattened inner-city after the 2010 and 2011 earthquakes.

Now the Government's Christchurch Central Development Unit (CCDU) wants to buy some of the site to include in the 'southern frame' - a network of public spaces, lanes and courtyards included in the rebuild blueprint developed in 2012.

The unit's director, Baden Ewart, said discussions with the landowner were "making positive progress" towards a sale agreement. The Crown could initiate special compulsory acquisition powers if talks break down.

The move resulted in Team Hutchinson Ford deciding to shut down its paint and panel department with the loss of four jobs.

"With the corridor project progressing, we have taken the opportunity to streamline our business and close our paint and panel shop which was a non-core operation," said dealer principal John Hutchinson.

"It is pleasing that the four affected staff are now in new employment."

The business will continue trading on the site, Mr Hutchinson said.

One former longstanding employee, who was made redundant last month, was stunned by the manner in which he lost his job.

"It was a bit upsetting ... but luckily I picked up a new one straight away," said the ex-worker, who did not want to be named.

"We got told that Cera [Canterbury Earthquake Recovery Authority] was buying a strip of land through our workshop to possibly build a walkway which was effectively going to tear the building in half.

"I just don't understand why they want a walkway right there. It's beyond me. But the Government can do whatever it wants, really.

"And from the business owner's point of view, I bet it's a damn stressful time at the moment. It will be a major disruption."

The 'southern frame' is designed to become a "regenerated area for business, education, health activity and central city living".

A network of public spaces will link pedestrians and cyclists with the health precinct in the west and the innovation precinct in the east.

The CCDU told NZME News Service it was not aware its push for Team Hutchinson Ford prompted job losses.

"We would not expect to be informed about business decisions made by private operators," Mr Ewart said.

"As part of the negotiations, we have worked with the owner to help him minimise disruption to his business in any agreement that may be reached."

Compulsory acquisitions

• The Canterbury Earthquake Recovery Act gives the Crown special powers to compulsorily acquire land.

• Across the central city, 242 properties have been bought - or agreement reached for purchase - for anchor projects.

• 20 properties have been acquired compulsorily.

• If a property is compulsorily acquired, the previous owner can lodge a formal compensation claim.

• The Minister for Canterbury Earthquake Recovery will make a final determination on compensation, based on market value.

• Appeals over compensation, but not the acquisition itself, can be made to the High Court.