Crown Acquisition of Kate Sheppard's Former Residence (PDF 1 MB

Rt Hon Jacinda Ardern Minister for Arts, Culture and Heritage Crown Acquisition of Kate Sheppard’s Former Residence, 83 Clyde Road, Christchurch January 2020

Date: 17 December 2018 Title: Crown Acquisition of Kate Sheppard’s Former Residence, 83 Clyde Road, Christchurch Author: Minister for Arts, Culture and Heritage

These documents have been proactively released by the Minister. This package includes the Cabinet paper and other key decision papers, as listed below.

Title: CAB-18-MIN-0445 Proposal to Purchase Former Residence of Kate Sheppard in Christchurch Crown Acquisition of Kate Sheppard’s Former Residence, 83 Clyde Road, Christchurch CAB-18-MIN-0641.01 Crown Acquisition of Kate Sheppard’s Former Residence in Christchurch

Some parts of this information release would not be appropriate to release and, if requested, would be withheld under the Official Information Act 1982 (the Act). Where this is the case the relevant section of the Act that would apply has been identified. Where information has been withheld, no public interest has been identified that would outweigh the reasons for withholding it.

Key to redaction code: • S9(2)(a) – to protect the privacy of natural persons • S9(2)(f)(iv)PROACTIVE – to maintain the current constitutional RELEASE conventions protecting the confidentiality of advice tendered by Ministers and officials • S9(2)(h) - maintain legal professional privilege • S9(2)(i) – to carry out, without prejudice or disadvantage, commercial activities

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Office of the Minister for Arts, Culture and Heritage

Chair, Cabinet Social Wellbeing Committee

CROWN ACQUISITION OF KATE SHEPPARD’S FORMER RESIDENCE, 83 CLYDE ROAD, CHRISTCHURCH Proposal 1. This paper seeks Cabinet’s agreement to the negotiating parameters, funding and timeframes for Crown acquisition of Kate Sheppard’s former residence at 83 Clyde Road, Christchurch (‘the Property’) to better protect its heritage values and ensure it is accessible to the public. Executive Summary 2. The Property is significant as the centre of Kate Sheppard’s activities that led in 1893 to New Zealand becoming the first self-governing country in the world to grant women the vote. Heritage New Zealand has listed the Property as a Category 1 historic place: of special or outstanding heritage significance or value.

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4. The Property’s sale presents an opportunity to create an enduring legacy of the 125th anniversary of women’s suffrage, and to ensure the Property can be accessed and valued by current and future generations of New Zealanders.

5. With support from Land Information New Zealand (LINZ), the Ministry for Culture and Heritage (MCH) and Heritage New Zealand have commenced the investigations required to support a Crown offer to purchase (the ‘Property assessment work’), involving: 5.1. a legal review of heritage and other Christchurch District Plan constraints, an engineering/building review, an asbestos survey, an accessibility report, a fire report, and a heritage assessment; and 5.2. extensive engagement with stakeholders, including the University of Canterbury and Christchurch City Council, to establish a new use for the Property and management arrangements (possibly as a national or international centre promotingPROACTIVE women’s history and rights) .RELEASE 6. The Property assessment work could take eight-to-ten months, and there is a risk the owner will sell the Property to a third party in the meantime. To manage this risk, I recommend the following approach: 6.1. Heritage New Zealand will seek to acquire the Property, on behalf of the Crown, ideally once the Property assessment work is completed but at any time necessary if the owner receives an offer from a third party; 6.2. If the Property assessment work is not completed when a third party offer is made, the Crown’s offer will be subject to such conditions as are necessary to protect the Crown’s interests;

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6.3. S9(2)(f)(iv)

6.4. If the owner rejects the maximum offer, the Crown will not purchase the Property.

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8. I consider this approach offers the best balance of benefits and risks (including timing, fiscal and reputational), ensuring the Crown can make informed decisions and intervene when there is an opportunity to purchase the Property.

Background 9. In September 2018, Cabinet considered an oral item on a proposal to purchase the Property, and authorised a group of Ministers to take decisions on its purchase.

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11. The owner has since been in contact with LINZ, indicating a preference for the Crown to acquire the Property, but that other parties are also interested. There is now some urgency for the Crown to decide what, if anything, it wishes to do.

Why is the Property important? 12. The Property is significant for New Zealanders and internationally as the centre of activities that ultimately led to New Zealand becoming the first self-governing country in the world to grant women the vote, and the residence of one of New Zealand’s most prominentPROACTIVE historical figures. RELEASE 13. Kate Sheppard lived in the Property from 1888-1902. During this time she worked on articles, pamphlets and speeches, while coordinating the actions of women around the country campaigning for equal rights. The suffrage petition of 32,000 signatures, one of this nation’s most important historical documents, was largely pasted together in the Property. It was also the place where Kate Sheppard celebrated victory when women were granted the right to vote on 19 September 1893.

14. The Property is a Category 1 historic place on the New Zealand Heritage List Rārangi Kōrero, which means it has statutory recognition as a place of special or outstanding heritage significance or value.

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Why should the Crown intervene? 15. The Crown could decide not to take any further action. The Property is not under any immediate threat, and is subject to legal protection; demolition is a non-complying activity under the Christchurch District Plan and would require a publicly notified resource consent.

16. However, if the Property remains in private ownership, there are risks that alterations will be made over time that reduce its heritage value, and opportunities to increase public access will not be realised (currently, there is only very limited access).

17. In summary, there is a good case for Crown intervention, given: (1) the Property’s outstanding heritage values; (2) the uncertainty these values will be retained while in private ownership; (3) the limited opportunity for the public to experience and benefit from these values; and (4) the fact the house is on the market.

Objectives for Crown intervention 18. I propose the objectives of Crown intervention are to: 18.1. better protect the Property’s heritage values and ensure those values are accessible for all New Zealanders now and for future generations; 18.2. celebrate Kate Sheppard’s life and achievements and the importance of the suffrage movement and the suffrage petition, and promote the ongoing importance of women’s history in New Zealand; 18.3. provide, subject to feasibility studies, a venue for future events and activities that promote equality and the protection of women’s rights; 18.4. serve as a legacy project for the 125th anniversary of women’s suffrage in New Zealand; and 18.5. ensure the Property is acquired and managed in a fiscally responsible and sustainable way that best balances the preceding objectives.

What are the timing and due diligence considerations? 19. The decision to intervene, and when to do so, is not straightforward. There are in theory multiple ways the Property could be acquired, operated and used – including setting up a private trust, vesting to a local authority, partnership with the University of Canterbury (which borders the Property) and potential philanthropic partners.

20. Given the Property is currently in the residential suburban zone, I am aware there may be significantPROACTIVE constraints on its use. However, RELEASE without completing due diligence and a comprehensive assessment of the use and management options, the Crown cannot be certain of how the Property could be used and the upfront and whole-of-life costs.

21. MCH has commissioned LINZ to undertake due diligence work, including: an investigation, by a professional Resource Management Act 1991 (RMA) planner, of the District Plan and other RMA requirements; a full investigation of the need for consents from the Christchurch City Council; a legal review of issues such as any unresolved insurance issues; an engineering/building review; an asbestos survey; a review of accessibility and fire safety issues; and a heritage conservation assessment.

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Options for purchase 22. The main options to achieve the Crown’s objectives (paragraph 18) are as follows.

Option 1: Crown contribution to a private trust 23. Under this option, the Crown makes a contribution to a private trust to assist acquisition, either through underwriting a loan or partial loan, or providing a grant (the latter could be either matching donations or up to a certain specified amount).

24. Although potentially the lowest cost to the Crown, Option 1 is unlikely to meet the Crown’s objectives, or at least not in a timely way. Pursuing this option – including setting up a trust and fundraising – would delay purchase by many months. In the interim, there is a risk the Property is sold to a third party. While the University of Canterbury and private individuals have expressed interest in partnering with the Crown or helping with fundraising for operating costs, I am not aware of any funding for the upfront acquisition costs.

Option 2: Minister of Conservation acquires the Property as a reserve and vests management 25. Option 2 would require the Minister of Conservation to acquire the Property under the Reserves Act 1977, and then vest it as an historic reserve in an appropriate agency or private trust for ongoing management. The benefits of this approach include certainty about the Property’s use as an historic reserve and associated protections.

26. This option carries higher upfront costs than Option 1 for acquisition and any significant repairs or changes to enable public use. Operational costs would depend on how and to whom the Property was vested. However, the Crown cannot be certain the Property should be made an historic reserve until the due diligence is completed, and reaching agreement on management arrangements would likely take many months.

Option 3: LINZ makes a conditional offer subject to due diligence, and acquires and manages the Property until decisions can be made about its future use and management 27. Option 3 has similar considerations to Option 2, entailing high upfront and interim management costs. Under this option, LINZ would purchase the property under the Greater Christchurch Regeneration Act 2016 (GCR Act) and then manage it until permanent arrangements can be put in place.

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Option 4: Delay making any offer until MCH has carried out the Property assessment work, with LINZ’s support 29. Option 4 requires MCH and Heritage New Zealand, supported by LINZ, to complete the Property assessment work, likely taking eight to ten months. It involves lower upfront costs but is less timely than Option 3. The Crown (through Heritage New Zealand or another agency) could then make an unconditional offer to purchase the Property, if the Property assessment work was favourable.

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30. Under this option, there is again the risk the Property could be sold to another party while the Property assessment work is done. If this occurred, any expenditure on due diligence would be a sunk cost and there would be reputational risks for the Crown (in losing the opportunity to protect the Property’s heritage values, and in engaging with potential owners, co-owners and/or funders to no avail).

Option 5 (recommended): Heritage New Zealand makes an offer, on behalf of the Crown, while the property assessment work is underway if needed, or otherwise on its completion 31. This approach is essentially a combination of Options 3 and 4 but better manages the timing, fiscal and reputational risks.

32. Under this option, Heritage New Zealand will seek to acquire the Property, ideally once the Property assessment work is completed and is found to be favourable. If the owner receives a third-party offer for the Property before completion of the Property assessment work, Heritage New Zealand will offer to purchase the Property on behalf of the Crown, with such conditions as are required to protect the Crown’s interests.

33. Heritage New Zealand is an autonomous Crown entity, which cannot be directed by Ministers on heritage matters concerning particular heritage places. However, its Board has confirmed that, subject to funding, the Property meets the criteria for inclusion in its property portfolio, and it will work with the Government to achieve the Crown’s objectives for the Property.

Recommended approach 34. Taking into account the timing considerations and Crown objectives, I consider Option 5 achieves the best balance of benefits and risks (including timing, fiscal and reputational), and ensures the Crown can make informed decisions while there is an opportunity to purchase the Property.

Towards a plan for future use 35. Subject to Cabinet’s agreement to Option 5 and funding approval, I seek Cabinet’s agreement to give Power to Act to the Minister for Arts, Culture and Heritage and the Minister of Finance (delegated Ministers) to make decisions on the use and management of the property.

36. Under Option 5, the use would need to be consistent with the Heritage New Zealand Pouhere Taonga Act 2014, which emphasises the promotion of heritage values. 37. There isPROACTIVE a range of models for public use ofRELEASE properties of this kind, from a house museum, to a residency, education centre and community meeting place.

38. The Property has been substantially modified and initial assessments are that it is not suited to be a house museum. It is better suited to educational and community uses. In preliminary conversations, the University of Canterbury has expressed interest in using the Property as an educational and research centre focussed on women’s rights or human rights more broadly. Other activities would be accommodated alongside University uses, possibly including International Women’s Day events and awards ceremonies. The final uses will need to be decided in close consultation with the University of Canterbury and other stakeholders.

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Negotiating parameters 39.

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Other costs 41. There are also costs in repurposing the Property for public access and use, and for its ongoing management.

Repurposing costs 42.

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Interim operating costs 43. S9(2)(f)(iv)

Ongoing operating costs 44.

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Risks 48. Overall I consider the risks of the Crown seeking to acquire this Property are outweighed by the benefits, including a unique opportunity to protect and promote a significant piece of New Zealand’s history. I am also conscious of the risks of losing this opportunity if the Crown does not intervene now.

49. The timing, reputational and financial risks and implications of the Crown intervening cannot be mitigated entirely, but they can be managed by the recommended approach (Option 5), including by (1) making any offer conditional on due diligence; (2) setting fair and reasonable limits on what the Crown pays; and (3) prioritising and expediting decisions, including investigating all possible sources of funding and support for the Property’s repurposing and ongoing management.

50. A further risk is that making a conditional offer if a third party seeks to buy the property will raise expectations, which may result in owner, public or media pressure. However, these expectations can be managed by clearly stipulating the conditions of purchase. In my view, there are greater fiscal and reputational risks if the Crown makes an unconditional offer and then faces significant costs to address unforeseen issues.

Consultation 51. MCH and LINZ have prepared this paper, and consulted with Heritage New Zealand; The Treasury; the Department of Conservation; the Ministry for Women; and the Department of the Prime Minister and Cabinet (Greater Christchurch Group). The Department of the Prime Minister and Cabinet (Policy Advisory Group) and the State Services Commission were informed.

52. MCH has had initial, informal, conversations with the University of Canterbury and Christchurch City Council.

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PROACTIVE RELEASE 54. If costs are lower than indicated above, any remaining funds will be returned to the Crown.

Legislative Implications and Impact Analysis 55. This proposal has no regulatory implications, and a regulatory impact analysis is not required.

Human Rights, Gender, and Disability Perspective Implications 56. Crown intervention provides an opportunity to celebrate New Zealand’s suffrage movement and women’s rights. Future events and activities could help to raise

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awareness of, and advance efforts to achieve, gender equality and a fairer society. Should the Crown acquire the Property, any decisions on its future use and management would need to ensure it meets accessibility standards / best practice.

Publicity 57. Negotiations will need to be completed before any announcement can be made. In the meantime, MCH and Heritage New Zealand will develop a communications plan. This will help to respond to any concerns about the opportunity costs, including lack of funding for other high-profile heritage properties, particularly in Canterbury.

Proactive Release 58. I do not propose to proactively release this paper as it concerns matters that are subject to negotiations which, if released, could undermine the Crown’s negotiating position.

Recommendations 59. The Minister for Arts, Culture and Heritage recommends that the Cabinet Social Wellbeing Committee:

1 note that the former residence of Kate Sheppard at 83 Clyde Road in Christchurch (‘the Property’) is significant to New Zealanders and internationally as the centre of Kate Sheppard’s activities that ultimately led to New Zealand women being granted the right to vote in 1893;

2 note that the Property is on the market and there is a good case for the Crown to intervene to protect the Property’s heritage values, and to ensure those values are accessible to all New Zealanders;

Property assessment underway 3 note that the Crown (Ministry for Culture and Heritage (MCH) and Heritage New Zealand, with support from Land Information New Zealand (LINZ)) has commenced due diligence and other investigations (the ‘Property assessment work’), which will involve:

3.1 a legal review of relevant issues, a review of heritage and Christchurch District Plan constraints, an engineering/building review, an asbestos survey, an accessibility report, a fire report, and a heritage assessment;

3.2PROACTIVE engagement with potential owners, RELEASE co-owners and/or funders, including the University of Canterbury and Christchurch City Council to establish a new use for the Property and ongoing management arrangements;

4 note that the Property assessment work could take eight to ten months and there is a risk the owner will sell the Property to a third party in the interim;

Negotiating parameters for Crown purchase 5 agree that, should the owner receive a third party offer to purchase the Property while the Property assessment work is being carried out, the Crown is prepared to make an offer within the following parameters:

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5.1 Heritage New Zealand will seek to acquire the Property under the Heritage New Zealand Pouhere Taonga Act 2014 by way of an offer to purchase that is either:

5.1.1 conditional, if the Property assessment work is incomplete; or

5.1.2 unconditional, if the Property assessment work is well advanced or completed and no conditions are required;

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12 agree that the expenses and capital expenditure for 2018/19 and 2019/20 incurred under recommendation 9 above be charged against the Emerging Priorities Fund established as part of Budget 2016, as adjusted by the conversion described in recommendation 11 above;

Repurposing the Property 13 agree that Heritage New Zealand will work with MCH, LINZ and the Treasury to advise delegated Ministers on options for repurposing the Property for public use and management arrangements;

14 invite the Minister for Arts, Culture and Heritage to report back to Cabinet on the future agreed use and management of the Property within eight months of any Crown acquisition, S9(2)(f)(iv) PROACTIVE RELEASE 15 agree that MCH and Heritage New Zealand will prepare a communications plan to support any Crown acquisition.

Authorised for lodgement Rt Hon Jacinda Ardern Minister for Arts, Culture and Heritage

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S9(2)(f)(iv) IN CONFIDENCE CAB-18-MIN-0445

Cabinet

Minute of Decision

This document contains information for the New Zealand Cabinet. It must be treated in confidence and handled in accordance with any security classification, or other endorsement. The information can only be released, including under the Official Information Act 1982, by persons with the appropriate authority.

Additional Item: Proposal to Purchase Former Residence of Kate Sheppard in Christchurch

Portfolio Arts, Culture and Heritage

On 10 September 2018, Cabinet:

1 noted the advice of the Minister for Arts, Culture and Heritage on the proposal to purchase the former residence of Kate Sheppard in Christchurch;

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3 authorised a group of Ministers comprising the Minister for Arts, Culture and Heritage, the Minister of Finance and the Minister for Greater Christchurch Regeneration to have Power to Act to take decisions on the proposal to purchase the former residence of Kate Sheppard in Christchurch, including funding and ongoing operating issues.

Michael Webster Secretary of the Cabinet

Hard-copy distribution: Prime Minister Deputy Prime Minister Minister of FinancePROACTIVE RELEASE Minister for Greater Christchurch Regeneration

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