Council may cut flower show

The Christchurch City Council is considering breaking its contract with the Ellerslie Flower Show, which has cost ratepayers about $900,000.

The Press understands that the council has sought specialist legal advice about the implications of abandoning the struggling show.

Ellerslie has cost ratepayers about $900,000 since 2010, above an initial purchase price of $3 million, prompting the previous council to order a full report on the event.

A source close to the process told The Press that councillors were mostly in agreement about the show’s future, but the consequences of the decision needed to be investigated.

A lack of contract law knowledge meant an independent expert was required, outside of the council’s existing legal team.

Councillors met last week behind closed doors to discuss whether to keep the show running, but deferred their decision, asking for more information.

They were expected to make an announcement today, after a second public-excluded meeting.

Sir Bob Parker, who was the mayor when the show was purchased, said he thought letting it go was a mistake.

He said that while he did not read the contract in detail, there would have been provisions made for the council to terminate the agreement with Ellerslie. He did not know what the contractual consequences of terminating the agreement would be.

‘‘It seemed to us a very good opportunity,’’ he said. ‘‘We need to think further than just this moment. If we lose these events, we’ll never get them back.’’

Parker noted that the Ellerslie management team had managed to raise about $3m every year, without council help, to keep the event operating. He said the show had undoubtedly been affected by the earthquakes.

The show has faced scrutiny since it was purchased by the council. A sharp drop in visitor numbers and sponsorship postquake left ratepayers to pick up an annual shortfall.

Widespread disappointment after the 2013 show forced organisers to inject a further $170,000, resulting in much higher visitor satisfaction scores this year.

Show management has said it could be saved if the council invested in its operation upfront.

Ellerslie director Dave Mee said he would again be available for the council during its meeting this morning, but did not want to comment ahead of a formal decision being released.

He said last week that he supported the council choosing to hold Ellerslie biennially with another city, or increasing its funding and backing the show continuing as is.

If no decision was made by Sunday, the council would begin incurring financial penalty under terms of the contract.