Council oversight of large CIAL investment decisions

rob van der mark made this Official Information request to Christchurch City Council

Currently waiting for a response from Christchurch City Council, they must respond promptly and normally no later than (details and exceptions).

From: rob van der mark

Dear Christchurch City Council,

With reference to our email correspondence to the ELT of CCC on 22 & 23 Sept 2022, and your reply to answer these questions as a LGOIMA request, please find below our specific requests for information. These come in addition to our email questions (not in lieu of).

Financial Oversight

1a. Please provide all formal mechanisms currently in place for Council to quantitatively evaluate and approve the long term financial outcomes of its CCO's (CIAL or CCHL) investment decisions which will carry a large short term cost but long term delayed cost recovery / profit / break even.

2. If council has evaluated the long term (greater than 10 years) outcome of CIAL's plans to develop a Central Otago airport, please confirm this (and date) and provide a copy of this decision and evaluation report.

3. Please provide the formal mechanism that council uses to ensure the existing CCHL board makes the right long term financial investment decisions

4. Please provide the evaluation framework that council will use in its issuance of the next LOE to CCHL incl. which key assumptions and risk assessments that CIAL would need to include in its long term forecasts (ie. the outlook for international tourism, increasing regulation / taxation on flights, increasing cost of SAF fuel reducing demand, major geopolitical uncertainties).

5a. Please provide the mechanism/process by which alignment of Council strategic objectives and CCO business activities is achieved in practical terms.

5b. Please provide information how council evaluates how an out of district airport serves its ratepayers (in ways other than dividend impact) and whether there is strategic alignment and this is therefore a worthwile investment decision that would benefit (or adversely affect) Christchurch ratepayers.

6. Please provide (information about) the mechanism via which Council would stop CIAL going ahead with this proposal.

Climate Change Impacts

7. Please provide the mechanism via which Council would evaluate long term GHG emissions from both the airport build as well as the enabled emissions that come with a new airport (ie. flight emissions).

8. Please provide the mechanism that council uses to include all enabled aviation emissions into its business planning processes going forward.

9. Please provide the format Council uses to include long term emissions expectations in its LOE to CIAL.

Community consultation

10a. Please confirm that council's "Significance and Engagement policy" and any future community consultation covers long term financial outcomes forecasts by CIAL plans that affect the community via lost dividend or rate increases.

10b. Please confirm that council's "Significance and Engagement policy" and any future community consultation includes long term emissions forecasts by CIAL.

11. Please confirm that council's "Significance and Engagement policy" and any future community consultation also covers Central Otago communities affected by this CIAL development.

12. Please confirm that the enactment of community consultation via the "Significance and Engagement policy" will take place well before CIAL has made a Go/No Go decision (planned in 2023) and engages major contractors for this project and the Christchurch community starts incurring major additional costs.

13. Please provide details of the evaluation/engagement framework in use and/or would be used for a CIAL Central Otago airport development, and very specifically how community feedback is being captured on the cost of debt servicing, potential cost of lost dividend, rate increases and the probability/risk that this may eventuate, including details on key financial forecast assumptions and probabilities around these.

Council review of CIAL plans

14. Please provide a copy of the presentation, briefing materials and meeting minutes of the workshop that CCC held with CIAL in May 2022. Please explain why there is no record of this workshop having taken place on the council website.

Yours faithfully,

Rob van der Mark

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