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WESTERN NEWS Latest Christchurch news at www.star.kiwi<br />
Tuesday <strong>May</strong> <strong>14</strong> <strong>2019</strong> 5<br />
<strong>News</strong><br />
HAVE YOUR SAY: What do you think of James Gough’s<br />
idea? Email your views to Georgia,Oconnor@starmedia.kiwi<br />
Gough wants to look at selling libraries<br />
• By Julia Evans<br />
POTENTIAL mayoral candidate<br />
and Fendalton Ward city<br />
councillor James Gough wants to<br />
investigate the possibility of selling<br />
off libraries and service centres.<br />
Cr Gough said a conversation<br />
should be had over whether<br />
suburban libraries and service<br />
centres, excluding Turanga, would<br />
be a better asset if they were sold<br />
to private investors, with the city<br />
council as long-term lease holders.<br />
The value of city council’s library<br />
and service centre network<br />
is $65.3 million.<br />
“It would realise significant<br />
revenue in the short-term to<br />
assist with paying down debt<br />
and reducing rates – but it would<br />
also be essential that council<br />
expenditure is significantly<br />
reduced too,” he said.<br />
However, Cr Gough said it<br />
would have to be paired with<br />
pared back capital and operational<br />
spending to have the best<br />
outcome to reduce rates.<br />
“The proposal would need to be<br />
a hand-in-glove approach where<br />
increased revenue in the shortterm<br />
was coupled with a significant<br />
reduction in capital and<br />
operational spending as well.”<br />
Cr Gough has been a proponent<br />
of asset sales.<br />
But in September the city<br />
council voted against a proposed<br />
review into how much could<br />
ASSETS: (Clockwise) – Fendalton, Bishopdale, Shirley and Upper Riccarton libraries.<br />
be made from selling stakes in<br />
businesses such as the Lyttelton<br />
Port Company and broadband<br />
provider Enable.<br />
It is a conversation starter echoed<br />
by the Canterbury Employers’<br />
Chamber of Commerce in its<br />
submission to the city council’s<br />
Annual Plan based off a similar<br />
model in Perth.<br />
“I think there are opportunities<br />
for the council to take a good, hard<br />
look at some of the assets that they<br />
do own and work out whether<br />
or not they need to own them or<br />
whether there is a different model<br />
for that operation,” chief executive<br />
Leeann Watson said.<br />
Ms Watson said it should be<br />
looked at it on a case by case basis<br />
– there should not be a “hard<br />
and fast” model, which was supported<br />
by <strong>May</strong>or Lianne Dalziel.<br />
“I used the example of the<br />
Linwood Library being in the<br />
Eastgate Mall and the fact that<br />
we jointly own this building with<br />
Ngai Tahu,” Ms Dalziel said.<br />
“It is enabling of people to<br />
access the library in the same<br />
hours that the mall is open.”<br />
Cr Gough is considering running<br />
for mayor.<br />
“I’ll probably make an announcement<br />
in the near future,”<br />
he said.<br />
The People’s Choice chairman<br />
Keir Leslie, which opposes asset<br />
sales, said libraries were a core<br />
council business.<br />
“The ideal that we would sell<br />
off libraries in our own city . . .<br />
would be a bad deal for the ratepayer<br />
in the long run.”<br />
Chase Commercial real estate<br />
agent Brendan Chase said the<br />
buildings would be “highly<br />
saleable and sought after” with<br />
a reliable and safe tenant in the<br />
city council.<br />
“The question to ask is are<br />
those libraries going to be required<br />
in the long-term, if they<br />
are you’ll pay for them over and<br />
over again,” Mr Chase said.<br />
Cr Gough said the projected<br />
rates increase of about 50 per<br />
cent in the next 10 years is an<br />
unsustainable “house of cards”<br />
that would “epically fail.”<br />
“Average incomes are not rising<br />
anywhere near this quickly<br />
so the system is fundamentally<br />
broken.”<br />
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