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TRIALS AND TRIBULATIONS OF A GOOD NIGHT’S SLEEP – PAGE 27
Thursday, February 25, 2016
$200 million project cut will help city deficit By Shelley Robinson CHRISTCHURCH could escape its financial crisis after behind-closed-doors meetings recommended to delay projects, saving more than $200 million. The Star has learned the city council has been forced to push out the time frames for projects because of a shortage in labour. The cost of the $200 million plus saving in this year’s budget will now be spread over several years. But the upside is the city’s $1.2 billion deficit will now become more manageable because of the project delays. Combined with a $635 million global insurance earthquake settlement and city council chief executive Karleen Edwards’ operational cuts, means the city council has largely solved its money woes, Deputy Mayor Vicki Buck said yesterday. Ms Buck (above) said rates could be capped at five per cent over three years instead of the planned 7.2 per cent and the city council could borrow more. “Our capacity to borrow more is way better, and our capital programme is actually what we will be able to achieve,” she said. City councillor Raf Manji said the
reason for delays was a combination of a lack of workers plus the risk of bringing the city to a “standstill” by doing too many projects at once. Ms Buck said the budgets had been redone, meaning instead of potentially selling city council assets including Orion, Lyttelton Port and Christchurch International Airport, they would now take on more debt. City Care is already in the process of being sold and Ms Buck said its sale has been included and is needed for the new budget to work. The sale has to come back to city councillors for final sign off. This means, it could technically be stopped with a majority vote. Asset sales were contentious last year with six Labour-aligned People’s Choice councillors saying there were other ways to deal with the $1.2 billion financial shortfall. They were out-voted. But city councillor Jamie Gough said he is uncomfortable with taking on more debt. “I think she [Buck] is really determined not to be looking into any partial sales of the likes of LPC or the airport – she’s more comfortable with taking on more debt than I am,” he said. • Turn to page 4
PHOTO: GEOFF SLOAN
Babies are back in Canterbury By Emma-Jane McLennan SMILEY BABY Harper is one of more than 7000 babies born in Canterbury last year – the first year fertility rates have gone back to pre-quake levels.
SPORT P41 Inadequate facilities add to costs for swimmers
starnews.co.nz
Dominique Scheepers, 22, (above) says she and her fiance Chris McCloy are “absolutely smitten” with their baby girl: “She’s just perfect, from head to toe. Of course I’m biased, I just love her.” • Turn to page 3
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