John Key's tax billions boost Bob Parker's re-election

Prime Minister John Key’s carefully timed announcement on Christchurch rebuild funding will shore up beleaguered mayor Bob Parker’s re-election chances on October 12.

He is under threat from challenger and retiring MP, Lianne Dalziel, who is calling for more public input into the recovery plans.

Mr Key, Canterbury Earthquake Recovery Minister Gerry Brownlee and Mr Parker each took the stand in the city to announce the government will fund $2.9 billion of the estimated total $4.8 billion rebuild cost, with $1.9 billion committed by Christchurch City Council on behalf of ratepayers.

It was the latest in a series of what Mr Brownlee's spindoctors call “milestone” announcements.

NBR ONLINE asked if the funding agreement had been several months slow in coming and what the significance of the timing was.

Mr Brownlee quipped that it'd had a beginning and an end.

The conference began with Mr Key outlining the main features.

He was followed by Mr Parker, who spoke about “my buddy Gerry” and made light of the many times they have crossed swords in the media in recent months.

The government will score points with the Christchurch public in several respects:

• It is stumping up with the bigger share of the money.
• It has deferred to public opinion by re-prioritising the building of a new rugby stadium down the list.
• It has given the city council the final say on the fate of the heritage-listed Town Hall that Mr Brownlee was last week urging to be demolished.

Nearly all city councillors attended the conference, along with members of the Canterbury Earthquake Recovery Authority and National’s Christchurch Central MP, Nicky Wagner.

A detailed breakdown of the rebuild cost reveals the lion’s share of the money will be for work already under way on pipes and roads – a total of $2.9 billion, with $1.8 billion the best estimate of the Crown’s likely contribution, and $1.1 billion as the council’s share.

The balance will see the Crown fund $1.1 billion of projects in the central business district and the council $765 million.

A new convention centre is the single costliest civic amenity at an estimated $284 million. Mr Key says the government will explore various funding arrangements including partnerships with the private sector.

A rugby stadium is costed at $253 million with the government contributing $37 million.

But Mr Parker emphasised that the first priority is mending peoples’ damaged homes and fixing roads and infrastructure. He indicated the rugby stadium could be some years away – a “temporary” $20 million post-quake constructed stadium is currently used for matches.

c.hutch@clear.net.nz