22 Jun 2013

Chch council to pay millions to repair plant

9:47 pm on 22 June 2013

Christchurch City Council has admitted it failed to insure a brand new composting plant before the earthquakes, and will now have to borrow extra money to pay for $11m worth of repairs.

The council is already facing a $760m shortfall in the insurance it will receive for underground infrastructure and buildings, due to a cap on its cover and disputes with its reinsurers.

The council's corporate services general manager, Paul Anderson, says the failure to get insurance for the Bromley composting plant was a clerical error and one he is ultimately responsible for.

Mr Anderson will not be drawn on whether disciplinary action has been taken but says changes have been made to the insurance team to make sure the mistake isn't repeated.