Christchurch Mayor Phil Mauger has backed proposals for a cap on council rates increases and dismissed suggestions he supports selling off part of Lyttelton Port, calling such claims “scaremongering.”
Speaking in an interview with Chris Lynch Media, Mauger said he welcomed the Government’s signals that a rates cap could be considered and believed Christchurch was already operating in a way that proved it could be done responsibly.
“We’re already down where I feel we can do it,” he said. “Our rates increase is 6.6 percent, but 1.6 of that is the stadium, which won’t feature next year. That brings it down to around five percent, and we’re not cutting services.”
Mauger acknowledged that a cap at the rate of inflation, around two percent, would be “a bridge too far” due to rising insurance and operational costs. However, he said if central government set a “realistic number,” councils should be open to the discussion.
He also called on the Government to put more funding into local government if it expected councils to cap rates.
“There’s talk about returning GST to the regions, or the Government paying rates on assets like schools and hospitals — which use our facilities,” Mauger said. “It’s a good discussion and I’m up for it.”
Port sale speculation rejected
Mauger also pushed back on claims he was open to selling or leasing parts of Lyttelton Port, following concerns raised during public meetings.
“There’s scaremongering going on, and it’s no good. It’s playing with people’s jobs in Lyttelton,” he said.
“I’ve front-footed it and said we’re not going to sell it, not going to sell it down, not even looking at leasing the operations to anyone.”
Mauger pointed to the strategic importance of the port and airport in the event of a major South Island disaster such as an Alpine Fault rupture.
“If that happens, our port and airport could be the only ones operational in the South Island. We need control of those assets.”
He voted to allow Christchurch City Holdings Limited (CCHL) to consult the public on asset reviews but said the move did not amount to support for selling.
“All it was, was sending it out for consultation, but it didn’t pass. It didn’t get over the first hurdle. That’s it.”
Clarifying venue funding and council roles
The mayor also addressed questions around council funding for Venues Ōtautahi, the council-owned company that manages stadiums and arenas.
“We give them money every year to maintain the buildings, which they do very well,” he said. “They then run a commercial entity themselves and make profit from it.”
Mauger said the council’s funding was strictly for asset maintenance, not to subsidise private events, adding that any such arrangements would fall under the remit of ChristchurchNZ.
“They’re not handing out subsidies to bring concerts or sporting events — that’s not their role. They run as a business.”
He dismissed the idea that council money could be indirectly supporting event companies, calling such a scenario “corporate welfare.”
“From what I’ve been told, that’s not happening. They’re running a commercial entity, and away they go.”
