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Stadium Funding Review Proposed A4 NEWS Wednesday, October 2, 2013 THE PRESS, Christchurch Stadium Coalminer debt may sting banks Hamish Rutherford planned to mine lignite. ●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●● ● funding Yesterday’s announcement was The Government is pumping ground-breaking, as it asks banks $25 million in cash and issuing at to take a loss on loans to a major least $100m in loans to Solid state-owned enterprise, which Energy as part of a deal to many lenders had assumed was as restructure the troubled mining safe as loaning money to the review company’s debts. Crown. ANZ, the lead bank in a More than seven months after consortium of lenders which announcing it was in talks with includes BNZ, ASB, Westpac, TSB Solid Energy’s lenders over its and Bank of Tokyo-Mitsubishi unsustainable debt, the Govern- UFJ, refused to comment. ment yesterday outlined the pro- While the banks on a whole are proposed posal to strengthen the balance said to be supportive, one said sheet. Bank of Tokyo- Glenn Conway In return for an Mitsubishi UFJ was [email protected] AT A GLANCE ●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●● ● injection from the Gov- not in agreement, ernment, the banks although a vote on the Renegotiating how much rate- ❯❯❯❯ The proposal is for a that lent Solid Energy proposal would likely payers pay for some of the Christ- 35,000-seat covered stadium for vast sums will convert see it accepted. The church anchor projects will be one sport and entertainment events $75m of the company’s bank was unable to of Lianne Dalziel’s first priorities over three city blocks between $381m debts into ‘‘non- comment last night. if she wins the city’s mayoralty. Hereford and Tuam streets, voting redeemable pre- Since announcing Earthquake Recovery Minister bounded by Madras and ference shares’’. While its troubles, Solid Gerry Brownlee says he is not Barbadoes streets. the exact status of the Energy has made more against any review but will agree ❯❯❯❯ The cost-sharing agreement shares was unclear, a than 700 workers only if genuine savings for caps the council contribution at Treasury official said redundant and closed taxpayers and ratepayers can be $253m – the amount the council holders would not earn some mines. identified. allowed for rebuilding the original any income from them. Bill English State Owned Enter- Although the ink is barely dry AMI Stadium at Lancaster Park. Solid Energy could prises Minister Tony on the $4.8 billion deal between the The Crown will contribute $37m. choose if or when it bought the Ryall said the company ‘‘still has a Christchurch City Council and the Source: New Zealand Government shares back, at face value. lot of work to do, and market con- Crown, Dalziel believes there are Finance Minister Bill English ditions remain challenging’’. other ways the city could fund the said there was no guarantee the Chairman Mark Ford said the local authority’s $1.9b share. Paul Lonsdale said it appeared $75m would ever be paid back. company had a ‘‘good operating That deal was struck in late the council had done well in the ‘‘The banks have given up $75m future’’ but returning to profit June after months of negotiations negotiations and he didn’t want to of their debt,’’ he told RadioLive. would require further cost cutting led by departing council chief risk any fresh talks making the ‘‘We won’t be paying interest on and a rise in world coal prices. executive Tony Marryatt and financial outcome worse for rate- that . They’ll only get that Ged O’Connell, of the Engineer- Brownlee. payers. money back if the company’s suc- ing Printing and Manufacturing But Dalziel is already lining up ‘‘I just want us to get on with it. cessful. If it’s not successful, the Union, said the deal gave Solid one key part of that agreement – I just want the action to start to banks won’t get that money back.’’ Energy’s remaining workers the covered sports stadium. happen.’’ The Government will issue ‘‘some much-needed security’’. She believes it could attract out- Brownlee did not return calls Solid Energy new loans of $100m to Labour’s State-owned enter- side investors and is impressed yesterday. $130m. They will be repayable prises spokesman Clayton Cos- with architectural designs that It also appears money will not within three years, which a source grove said there was not enough include ‘‘revenue gathering’’ be coming from the two district said would be funded through the detail for shareholders to assess features like attached hotels and councils that border Christchurch sale of farms in Southland, where whether the deal was a good one commercial offices. to the north and south. Solid Energy had previously for taxpayers. Dalziel said the stadium deal Both the Waimakariri and Sel- was a ‘‘white elephant’’ for the city wyn district councils poured cold and if elected mayor on October 12 water on any suggestions their one of her first calls would be to ratepayers should help pay for the arrange a meeting with the Gov- stadium. Filipino workers in ernment to talk about new ways The issue was raised by inde- the stadium could progress with pendent city council candidate more outside investment. Faimeh Burke who said other Can- ‘‘From the outset, I want to take terbury councils should be con- Hang it: Melbourne-based artist Ash Keating’s work Concrete Propositions had a construction company’s banner placed over debt to loan sharks a responsible and prudent position tributing. part of it. Photo: IAIN McGREGOR/FAIRFAX NZ and I really think we need to look ‘‘Why should it be just Christ- Charles Anderson workers earn about $22 an hour or [email protected] at renegotiating some parts of the church ratepayers who pay the ●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●● ● about $42,000 a year. It is under- cost-sharing agreement.’’ local public share? stood placement fees, however, are But she stressed she would not ‘‘It will be a facility for the Filipino workers on the Christ- sometimes inflated with extra be asking the Government to whole of Canterbury. Firm agrees ad isn’t art church rebuild are coughing up costs. cough up more money. ‘‘The Wellington region built thousands of dollars to overseas ‘‘[The workers] are entering a ‘‘There must be better ways to the Westpac Stadium, not just Wel- Anna Pearson banner in its upper right-hand cor- Christchurch Art Gallery direc- loan sharks for the right to work financial contract they are never [email protected] raise some of the money we need. I lington City ratepayers. ●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●● ● ner. tor Jenny Harper said the work here as part of a larger recruit- going to be able to pay off,’’ Nevell think we can do it smarter.’’ ‘‘That model should also apply The banner was taken down was a Gap Filler initiative, in con- ment industry that some are label- said. ‘‘As responsible employers Brownlee said he would be open here.’’ The placement of an advertising after inquiries by The Press yester- junction with the gallery. ling ethically dubious. within a developed country, we to any review if both parties Selwyn chief executive David banner on a Christchurch artwork day. ‘‘The work has run its course. It Most recruitment agents in the should be paying it. Ignorance is agreed there could be savings but Ward said it recently opened and has been labelled ‘‘disrespectful’’. Mike Hewson, an Australian- has sustained some damage over Philippines charge workers a not an excuse – if employers are he also said the ‘‘legally binding funded the Lincoln Events Centre Melbourne-based Ash Keating based Christchurch artist, said time, but this happens with transi- ‘‘placement fee’’ for finding work getting staff for free then the agreement’’ had been well and Rolleston Aquatic Centre created Concrete Propositions on a covering the art was ‘‘disrespect- tional works of art,’’ she said. for a candidate. Many Filipinos employee has paid for and most traversed already by both parties. which were used by people from wall on the Manchester St side of ful’’. ‘‘A work like this has to be left A spokesman for Fortis Con- take out high-interest loans in likely financed the job.’’ Any review would have to be all over Canterbury. the Cathedral Junction building in its entirety. As soon as you dis- struction, the contractor repairing their home country to pay the fee Other countries such as the tackled carefully and he was reluc- While there were costs borne last year. sect it with an ad, it totally Cathedral Junction, said the com- which ranges from a few thousand United Kingdom, Australia and tant to comment until after the locally, they produced wider The giant canvas exploded into destroys it,’’ he said. pany was aware the banner was on dollars up to about $10,000. some parts of Canada prohibit col- results of the local body elections benefits to the region, he said. colour when he threw, sprayed Keating said the banner top of an artwork. It was ‘‘no big Press inquiries have found that lection of placement fees. ‘‘Let’s see where the chips lie Waimakariri Mayor David and fired paint at it using buckets, bothered him, but was grateful to deal’’ and would be taken down, he many Filipino workers working It is against New Zealand law after that.’’ Ayers was more direct, saying his weed sprayers and fire have had access to the wall. said. here to fill gaps in the city’s labour for an employee to be required to Dalziel’s main mayoral rival district was ‘‘up to its neck’’ in extinguishers. ‘‘Over time, things change. I’m Cathedral Junction body cor- shortage are drowning in debt as make a payment to an employer or was reluctant to renegotiate, pre- earthquake recovery and it did not The artwork sat in its entirety more impressed by the fact that porate manager Kirk McKay said they struggle to service the loans.
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