Six companies – Lyttelton Port Company, powerlines company Orion, Christchurch Airport, fibre broadband provider Enable, CityCare and EcoCentral – make up the bulk of the city’s $6.3 billion asset portfolio. They are held by Christchurch City Holdings Ltd on behalf of ratepayers.
Most city councillors still generally oppose initiating, or exploring, partial or full sales of all six key companies.
The left-leaning voting bloc opposes strategic asset sales and still has eight votes, while the right-leaning bloc, including re-elected Mayor Phil Mauger, keeps seven.
Re-elected Andrei Moore (Halswell Ward) and Tim Scandrett (Cashmere Ward) are more centrist politically and will continue to hold the balance of power over the next three years.
They are both far from convinced any of the six companies need to be sold, fully or partially.
Early in his first term as mayor, in December 2022, Mauger supported a proposal for CCHL to develop business cases, which included options for partially selling strategic assets.
Mauger and nine city councillors voted in favour, getting the move over the line.
But a year later the council voted 8-7 against giving CCHL active management of the asset portfolio, which could have further paved the way to asset sales if passed.
Mauger supported the move.
However, he committed to not selling the port, airport or Orion during the latest election campaign.
Scandrett said this week he is not in favour of selling any shares in the companies looking into the new term.
“I rule partial sales out. I think it’s a waste of time,” he said.
Moore said he “struggles to see a compelling case” for selling any shares in the companies.
“But I’d be happy to look at and consider anything, as is our requirement to do so,” he said.
Neither Moore nor Scandrett see a partial or full sale proposal of any of the companies succeeding.
Mauger had a convincing election win on Saturday over rival Sara Templeton – a 20,000-vote majority.
Mauger received 59,179 votes to Templeton’s 39,113 in the preliminary count.
But he still does not have a working majority of like-minded city councillors.
During his campaign, Mauger did not completely rule out selling or partially selling the other three key asset companies – Enable, CityCare and EcoCentral.
“It’s up to ChristchurchCity Holdings to come back to us,” he told 1News last month.
When asked by The Star about what could happen with Enable, CityCare and EcoCentral in the new term, Mauger said it was a “bit early to get into the detail on this one just yet”.
He said his position has not shifted since the campaign.
LPC provided an annual dividend of $12.1 million in the year to June. The airport had a $33.5m dividend, while powerlines company Orion and fibre broadband provider Enable both gave $25m.
EcoCentral’s most recently reported dividend was $5m in 2024 and CityCare is not providing a dividend due to its loan repayment plan.
There has been speculation about private interests wanting to buy or lease the port.
DP World is a multinational logistics company, owned by the Dubai Government, which has had meetings with LPC.
But LPC denies conversations between the companies involved selling or leasing the port.
Jake McLellan (Central Ward)feels “confident” the city’s top strategic assets – LPC, the airport and Orion – will remain in public ownership in the next three-year term.
“The mayor has consistently said on the campaign trail that he doesn’t want to sell the assets. So, if taken at his word, they shouldn’t be under threat,” McLellan said.
Despite several left-leaning incumbent city councillors faced serious election challenges from candidates more open to exploring partial asset sales, all were re-elected.
McLellan was considered at risk of losing his seat, but managed to fend off his closest opponent Raf Manji by 676 votes (1801 to 1125).
Manji was one of the candidates most interested in exploring partial key asset sales, while McLellan is a memberof the left-leaning of The People’s Choice political ticket, which wants to keep
the assets in full public ownership.
All incumbent city councillors who stood for re-election won, including the six People’s Choice members.
Nathaniel Herz-Jardine, also with People’s Choice, won the vacant Heathcote Ward, replacing Templeton who stood for mayor only, while left-leaning independent Celeste Donovan was re-elected in Coastal Ward.
It means the council table’s left-lean was maintained and only one other city councillor, typically Moore or Scandrett, is needed to reach the nine-vote majority.
McLellan said he does not expect Mauger to push for a sale of Enable, CityCare or EcoCentral and would be disappointed if he did.
“Unless you explicitly campaign on doing something, you should be very wary of doing it.”
However, McLellan said selling of any of the three companies is not impossible as the left-leaning bloc still does not have a strong majority after the election.
He said the re-election of all left-leaning incumbents is a mandate from voters to oppose strategic asset sales.
“The numbers on Saturday are sort of an insurance policy to make sure asset sales don’t happen. So people should feel assured but always vigilant.”
Sam MacDonald (Waimairi Ward) said other city councillors should keep an open mind on any proposal CCHL might have for the assets.
The right-leaning city councillor did not know if there would be an appetite at the council table for any major changes proposed by CCHL.
“It’s far too early to know what will happen. CCHL really needs to look at how they can fund an expansion of the port. People need to be open minded and sensible in their decision making. Let’s just see what happens,” said MacDonald.
Melanie Coker (Spreydon Ward, People’s Choice campaign chair) echoed McLellan’s sentiment.
“I hope there won’t be sales, but I can’t say for sure. It will depend on whatever CCHL decides to present.”
