Compulsory acquisitions to speed up recovery

Roger Sutton, chief executive of the Canterbury Earthquake Recovery Authority. Photo / Simon Baker

Christchurch recovery boss Roger Sutton has flagged that the time is fast-approaching when compulsory acquisition powers will have to be used to speed up the recovery effort in the earthquake-shattered city.

Sutton, chief executive of the Canterbury Earthquake Recovery Authority (Cera) concedes the straightforward land acquisitions have now taken place and the more complex negotiations are beginning.

"I imagine that we will have to exercise the compulsory powers at some point and I expect that will be unpleasant. That's just a reality."

Some Christchurch property owners are preparing for a legal battle, with prominent group Core (Central Owners Rebuild Entity) considering a joint legal bid to fight the acquisitions. Despite the high potential for a backlash, Sutton remains firm that any acquisitions will be for the greater good of Christchurch. "Any project where we have to use those kind of powers is going to be unpleasant, but we have a strong mandate from the community that they want us to move ahead."

The Christchurch land acquisition scheme began in August 2012 with voluntary sales from landowners who owned property designated as part of the major anchor projects for the Christchurch CBD rebuild blueprint. "Overall we're at 60 to 70 per cent of the key anchor project in terms of acquiring the land. In almost every case the most experienced landowners are the ones that have sold us the land," says Sutton.

The Christchurch Central Development Unit has begun the process of sending out final offers to landowners yet to agree to sell their land. Property owners resisting the changes have complained the prices offered are well below market value, though Sutton says that attitude appears to be changing. "They're now coming to the realisation that the prices we're offering are fair prices. I think there will always be some who will be difficult but I am really happy with the progress we're making there."

Those landowners who choose not to sell their property will face compulsory acquisition under the Canterbury Earthquake Recovery Act 2011. Under the act's terms, extensive power is granted to acquire or dispose of property and to compulsorily acquire land.

Minister for Canterbury Earthquake Recovery, Gerry Brownlee has said the powers are there "if commercial negotiations fail and other people are prevented from getting on with the bigger recovery".

On the commercial front, Canterbury Employers' Chamber of Commerce general manager Leeann Watson says the resiliency of the business community has been "outstanding".

"Recent stats have come out that show pre-earthquake our business churn rate was 11.4 per cent and post earthquake is 11.6 per cent."