Local Government Minister David Carter said the council should sell some of its shares in the Christchurch airport and the Port of Lyttelton to fund the rebuild, avoid further debt and keep rates at an acceptable level.
Mr Carter said the move would go a long way to paying for the council's share of the rebuild which currently stands at just over $1.3 billion.
"We had a significant amount of our fundamental services destroyed in the earthquakes. It still hasn't been revealed the extent to which the Christchurch City Council has covered itself with insurance, but clearly they are going to need to raise a lot of capital to rebuild many of the Christchurch facilities,'' he told Radio New Zealand this morning.
Christchurch Mayor Bob Parker said even after the borrowing and proposed rates rises, the council would still have one of the lowest levels of debt of any council in New Zealand.
He told Radio New Zealand the Government hadn't used special powers under legislation created after the earthquakes to force the council to sell its assets.
"If the Government decides to go down that path we'll talk about that if and when it arises,'' said Mr Parker.
Mr Parker did not back the Government's asset sale agenda and said the council's assets bring in $40 million a year in dividends.
"Our community would prefer to hold on to our strategic assets and to borrow and to spread those borrowings for the elements of the rebuild that are not met by insurance, or by a Government grant. Over a couple of generations we think that's a fair way to spread the costs and keep it as affordable as possible,'' he said.
In January Earthquake Recovery Minister Gerry Brownlee signalled the Government would encourage asset sales when he asked for a list of council-owned assets.
Mr Carter said the Government was keen to see all councils look at asset sales to keep rates rises in check and reduce debt.
- Kate Shuttleworth
