Business backer fails to get help

Press, 11 July 1989, Page 3

Business backer fails to get help

By

TOM METCALFE

A request by the Canterbury Development Corporation for $lOO,OOO towards its operating budget for this financial year has been turned down by the Christchurch City Council.

A draft budget for the corporation’s 1989-1990 financial year, which began on July I', was submitted yesterday to the City Council’s finance committee, with the request for money. The budget showed an expenditure of $246,000 for the year, including $140,000 on salaries and allowances, and $14,765 in depreciation. The corporation’s budgeted income for the year was $97,500 from management fees, $36,000 in interest on investments, and $12,500 from running the corporation’s development centre. “Community funding” of $lOO,OOO was needed for the corporation to break even. The council’s acting general manager, Mr Bob Lineham, told the committee that if the money could not be found, the corporation would have to draw on its investments to meet its expenses. That would weaken the corporation’s income base, and mean additional council grants would be needed in subsequent years to maintain the present level of activity. The council’s budget was completed, however, and it was unlikely that any more money would be available this financial

year, he said. The corporation’s chairman, Sir James Stewart, said in a submission to the committee that since the corporation was set up in 1984 it had successfully worked within available funding. In that time it had contributed $250,000 towards promotions and awards, and had about $700,000 in investments. It had been involved in establishing the Canterbury Technology Park, run the Canterbury Enterprise Scheme, undertaken business promotions, produced videos and audio visual presentations on Christchurch and Canterbury, and earned a reputation as a source of sound business information. The corporation was. the only organisation with the structure, experience and multi-sector experience to carry out well coordinated economic development, he said. Mr Lineham noted that the corporation’s financial year ended in June, 1990, and would overlap with the first three-month financial year of the new Christchurch City Council. The committee decided to recommend to the transitional committee that the new city give support to the corporation.