City Care returns to ‘keep’ list
A group called Keep Our Assets is claiming victory over a vote by Christchurch City councillors to return City Care to a list of strategic assets.
An unsuccessful attempt was made to sell the council’s roading, water and parks servicing company last year, but offers were considered unacceptable.
While ideologically important for some people, the practical effect of the vote may be minimal, according to councillors Raf Manji and Jamie Gough.
City Care chief executive Onno Mulder refused to comment about any effect the vote would have.
Yet in the 2016 annual report Mulder said the sale process took a significant amount of management time that inhibited the rollout of a number of initiatives.
All acquisition activities were halted during the sale process.
Keep Our Assets spokesmen John Minto and Murray Horton were delighted, describing it as a ‘‘backdown’’.
‘‘We said that the decision to sell assets was a perfect illustration of Government-led disaster capitalism or shock doctrine, motivated solely by ideology to take advantage of the shock of disaster to ram home a privatisation policy,’’ Horton said.
Councillor Jamie Gough voted against restoring it and said later he felt other councillors were confusing a ‘‘strategic’’ company with a significant company which delivered dividends to the city.
‘‘Because it’s a good company which provides dividends doesn’t mean it’s strategic,’’ Gough said.
‘‘You could invest in SkyCity casino or Meridian Energy and receive dividends too, but that wouldn’t make them a strategic investment like a port, which has a special monopoly in its area.’’
Gough said City Care was merely one of thousands of contracting companies which offered the same services.
A significant portion of City Care’s revenue came from contracts in other cities including Wellington, and Auckland where it works for Watercare.
Mayor Lianne Dalziel quoted section 5 of the Local Government Act 2002, which defined a strategic asset as one a council needed to retain if it wanted capacity to achieve or promote an important outcome or the future wellbeing of the community.
She said City Care would only be strategic if the council was able to favour it in its contracting, and she proposed it not be restored to the strategic list, but at the end of the debate she voted in favour.
Other councillors including Glenn Livingstone said City Care’s restoration to the list was important for community wellbeing.
He and other supporting councillors argued that strategic ownership was important for the city’s infrastructure capacity in times of emergencies such as floods.
Manji said after the meeting the decision had little relevance. Gough agreed that it meant little in practical terms because community consultation over a sale would be required whether it was to was on the strategic list or not.
In the final vote councillors David East and Gough voted against it. Cr Vicki Buck spoke about the reassurance of City Care staff when explaining why she changed her mind after previously voting to sell the company.
"Because it's a good company which provides dividends doesn't mean it's strategic." Councillor Jamie Gough