Ratepayer-owned Enable would be ‘attractive asset’ for buyers

Monday, 8 December 2025

Many Christchurch city councillors say they are open to selling ratepayer-owned Enable ‒ worth hundreds of millions of dollars ‒ as one potential investor called it an “attractive asset”.

The controversial plan will face stiff opposition, however. A hard core of councillors remain vehemently opposed to the idea.

Cr Sam MacDonald last week proposed selling Enable, the fibre broadband company, in response to the Government’s rates cap, which will require councils to keep rates increases between 2% and 4%.

With funding requirements projected to be above that, many councils are now looking for ways to boost revenue and cut costs.

Mayor Phil Mauger supported MacDonald’s call. He said the Government should start paying general rates on the land it owns including schools and hospitals as well. That could bring in an additional $25m annually, he said, and reduce rates increases by about three percentage points.

MacDonald reckoned Enable could fetch $1 billion on the open market and the money used to reduce debt and form a protected investment fund.

The Press asked the other 15 councillors and the mayor what they thought of the idea. Of the 10 that responded five said they were open to it but they wanted to see clear evidence of the benefits first. Four were vehemently against and one did not have a view.

Mauger said he was certainly not opposed to looking at it.

If Enable was sold he did not want the council to “burn the money up somewhere else”. He would prefer it was invested in Lyttelton Port, Christchurch International Airport or a future fund.

Christchurch City Council owns Enable via its investment company, Christchurch City Holdings Ltd (CCHL), which also owns other strategic assets including the Christchurch Airport, Lyttelton Port, Orion, Citycare Group and EcoCentral. It also has a majority stake in the Christchurch Adventure Park and owns former Red Bus land bordered by Fitzgerald and Moorhouse Aves, Ferry Rd and Catholic Cathedral College.

During the recent election campaign Mauger only committed to not selling the airport, the port and Orion.

In the year to June, Enable posted a $41.1 million profit from $119.2m in revenue. It paid a $25m dividend to CCHL. That is expected to increase to $35m a year in 2028.

Financial commentator Sam Stubbs would not be drawn on MacDonald’s idea but said Enable was a “vital” asset that should remain in New Zealand ownership.

“If you have a monopoly or a duopoly you should try and keep them locally owned.”

Stubbs is the managing director of KiwiSaver fund Simplicity, which is creating a new infrastructure investment fund, InfraKiwi, aimed at buying New Zealand assets.

He said Enable did not carry the long-term security of an electricity company as there were alternatives to the fibre network, but would still be an “attractive” asset that InfraKiwi would look at.

Labour-aligned People’s Choice councillors Jake McLellan, Nathaniel Herz Jardine, Pauline Cotter and Melanie Coker said they did not support selling Enable.

Cotter said selling assets to fill a cash shortage was short-sighted especially when the dividends already offset rates increases.

McLellan said Enable generated a good return for the council and he was worried selling it would push up rates in the long-term.

Deputy mayor Victoria Henstock and councillors Aaron Keown, Tim Scandrett, David Cartwright and Kelly Barber were all open to the idea, but wanted to see the benefits first.

Cr Andrei Moore said he did not have a view on selling Enable. In a Press election questionnaire in August filled out before the election he said he did not support full or partial asset sales.

Henstock said any potential sale must first demonstrate “clear evidence-based understanding of the value, both financial and strategic”.

“As a councillor entrusted with making critical decisions for the future of the city, we need to consider all options.”

Crs Celeste Donovan, Tyrone Fields, Tyla Harrison-Hunt, Yani Johanson did not respond, but before the election all said they opposed asset sales.

Cr Mark Peters also did not respond, but in 2023 voted to develop a business case to cede control of assets to CCHL, paving the way for sales. That was the last time asset sales were seriously discussed at the council. The idea was voted down 8-7.

MacDonald said last week, it would be “irresponsible” not to consider selling Enable.

The Government is giving councils until 2029 to fully enact the rates cap, but they will be required to consider the caps in their 10-year budgets from 2027.

Christchurch’s projected rates increase for 2026/27 is sitting at around 9%, but that includes water charges, which are exempt from the cap.