27 Jun 2015

Payout 'won't change need for asset sales'

1:34 pm on 27 June 2015

Canterbury Chamber of Commerce said it expects that the sale of Christchurch City Council assets will be even more essential after it gets an insurance payout for earthquake damage.

The view down Worcester Street looking away from the Christchurch Cathedral.

The view down Worcester Street looking away from the Christchurch Cathedral. Photo: RNZ / Alexander Robertson

As part of a 10-year plan, the council has agreed to sell up to $750 million worth of assets over the next three years.

The chamber's chief executive Peter Townsend said the council is still facing a lot of unknown variables, such as the size of its insurance payout, and the cost and requirements of the rebuild.

Mr Townsend said he believed all of the variables would lead to more costs, not less.

He said that would mean the council will have to review its whole financial structure, and in particular consider further asset sales.

Mr Townsend said he would rather the council had taken a more upfront and aggressive approach to the sales, but said he understands the politics of the decision.

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