Next page . . . . Previous page . . . . Speeches . . . . Contents . . . . Debates(HTML) . . . .

Legislative Assembly for the ACT: 1997 Week 7 Hansard (24 June) . . Page.. 1985 ..

MR CORBELL (continuing):

Perhaps one of the most important things that we were able to look into while we were in Christchurch was the Christchurch City Council's development of the Canterbury Development Corporation. This is an organisation that is run directly by the Christchurch City Council. It is a progressive and active organisation which sees its main role not as assisting business, which we were somewhat surprised at, but at providing jobs. It saw its No. 1 role and its No. 1 charter from the council which funded it as the provision and creation of jobs for its citizens. I think that is a very valuable base upon which to examine the activities of the Christchurch City Council and it is something that we can draw some attention to here. It is not just about assisting business; it is about creating jobs. That is the emphasis they have chosen to put on it.

Of particular note in the Christchurch City Council's economic development strategy which I would like to draw to the attention of this house is the ownership by the Christchurch City Council of several key elements of public economic infrastructure. The first is that the council owns 100 per cent of an organisation called Southpower - a power production and power distribution network which was previously owned by the New Zealand national government. This was privatised by the New Zealand national government some years ago and the Christchurch City Council made a deliberate decision to borrow money to purchase this organisation and to call it Southpower. Southpower is now the South Island's main energy provider and it is run entirely on a business footing - very similar to our own organisation, ACTEW.

I think what this demonstrates, and I will make some other points also, Mr Speaker, is that when a government is prepared to borrow money for what it sees as a worthwhile benefit you can get a very decent return and you control a key economic asset. Certainly, it would be a major economic asset for any city in New Zealand if it controlled the major provider of power for the South Island. They run it on business lines. They appoint people who are experienced in the management of power companies; but it is owned by the Christchurch City Council and it returns a dividend to the council, much like ACTEW.

Perhaps of more relevant note and of interest to Canberra is the ownership of Christchurch International Airport. Christchurch International Airport is owned 75 per cent by the Christchurch City Council and 25 per cent by the New Zealand national government. Again, here we have a very clear example of the Christchurch City Council recognising the importance of taking a strategic controlling interest in the management of key strategic economic assets. There is no doubt that Christchurch International Airport is very important to Christchurch's ability to compete not only in New Zealand but also in other markets overseas. It is the largest airport on the South Island of New Zealand and it is run entirely as a council business operation.

The importance of this for Canberra cannot be underestimated. The Federal Government has announced that Canberra Airport will be put up for sale. It will, in effect, be privatised. What we should learn from the Christchurch City Council example is that the long-term stability provided by the ownership by the Christchurch City Council of their airport has meant that their airport has been able to develop. Their airport has had the stability to undertake long-term borrowings to upgrade and improve the

Next page . . . . Previous page . . . . Speeches . . . . Contents . . . . Debates(HTML) . . . .