Govt should take over Q.E. II Park’s loans, group tells Mr Comber

Press, 6 December 1979, Page 6

Govt should take over Q.E. II Park’s loans, group tells Mr Comber

Queen Elizabeth II Park’s loan indebtedness should be taken over by the Government, Christchurch City councillors told the Underbecretary of Recreation and Sport (Mr Comber) yesterday. A City Council deputation relied heavily on the fact that the Government did give a lot of money — compared with other national governments — for the stadium and the 1974 Commonwealth Games. By comparison the local effort was modest, but was st’! being hit by unexpected inflation and unfairly costing the local ratepayer money that should more reasonablv come from the entire country. Local bodies had been told by the Government that use of electricity surpluses for non-energy purposes should be strictly limited. A big part of the park loss was cushioned by a transfer from Municipal Electricity Department sur- '■ pluses, instead of loading the entire deficit on rates. The council was trying to control running costs, set realistic charges, and encourage more use, but the total tost was rising steeply each year. Over all, the Government had contributed 6.6 per cent

s towards the total Games e cost at the outset. For the Commonwealth / Games at Edmonton, the: • Provincial and Federal Gov-: 1 emment share had been 58.7 - per cent. The Games to be held at Brisbane in 1982, 1 would be funded 33.3 peri t cent by local government! i and 66.7 per cent by state - and federal Governments. I In Christchurch, local gov- - emment provided 77.6 per - cent of the capital funding. Councillors said it was I not too late for the Govems ment to boost its share. I If the City Council did not ■ follow its policy of transfer-! r ring M.E.D. funds to meet, • part of the Queen Elizabeth! ■II Park deficit, rates would! ■have to rise 5.8 per cent toj I cover that project alone. ! At least the present trans- • fei policy spread costs over, 1 the city and Waimairij County, both served by the: : M.E.D. That was “particuj larly justified," since the stadium was close to! : recently developed neighbourhoods of the county; residents there used the facilities at least as much as city dwellers. Originally, loan money was raised at low interest rates of 5.5 per cent to 6.25'

> per cent. But renewals were rates as high as 13.5 per i:cent, and never less than: :! 12.5 per cent. Interest rates showed no. ’ sign of dropping, the depu- ■ tation said, so that the cost! i;of facilities built for the! ■■national good would con-! i|tinue to rise. > It must be understood that Queen Elizabeth II Park “greatly exceeds the needs • of the whole metropolitan area,” the deputation said. It was the most complete ■ sports project in the coun-, try, and was of national! : significance. At the start, the biggest single outside contribution! i'towards capital costs came. I from the Games Organising' ilCommittee. a total of : $858,894. Of that, $200,000: |was from the Government. ■| It was acknowledged that! [the Government "no doubt gave considerable additional! assistance in kind,” the dep-i utation said. But the “vast i majority” of Games tickets • were sold to Christchurch residents, and so they could be seen to have raised a large amount in that way. Christchurch had been the smallest city to stage a < Commonwealth Games festival, and was the first to do it at a big profit. The total Games cost had been about $8 million, com- i

spared with capital costs ' alone of $4O million at Edi: monton and a projected $36 ; million at Brisbane in 1982. ! > It was recognised through-' •.out the world that large-' ; I scale Games required pervmanent facilities far beyond ■’the host city’s normal needs. I The City Council had been!' ; “forced to call heavily on its! ; financial reserves to see the! I project through,” the depu- : : tation said. “In fact, virtual- ; ly all reserves which could : : legally be put to the task 1 were exhausted.” ; In 1973, the inflationary ■ ! spiral had not been foreseen. .'Until then, medium to long- j I term budgeting was prac- > itical, but it was not the J 'same today. |< i “There could not have!) i been a worse time at which!) to exhaust those reserves,” 11 Ithe deputation said. For one thing, the cash ini, I lieu of reserves account —|j 'built up through contribu-j tions by property developers', — had been used to the ex-1] tent that development of! neighbourhood parks had' suffered. As an alternative to total' assumption of loan in-' debtedness on the stadium; and swimming pools, they, suggested that the Govern-, ment could pay off individ-. ual loan issues as they came! due for renewal