ยท- COMMERCIAL IN CONFIDENCE In Confidence io n Office of the Minister supporting Greater Christchurch Regeneration en er at Chair, Cabinet Economic Growth and Infrastructure Committee R eg CHRISTCHURCH CATHEDRAL: CROWN RESPONSE TO THE WORKING GROUP REPORT ch Proposal This paper seeks high-level agreement to an approach to the reinstatement of the Christchurch Cathedral (the Cathedral), through seeking: ch ur 1. Agreement to negotiation parameters with the Church Property Trustees (CPT); and 1.2. Agreement for power to act for joint Ministers, being the Prime Minister, the Minister of Finance and the Minister supporting Greater Christchurch Regeneration. at er C hr is t 1.1. G re Executive Summary The Cathedral remains significantly damaged since the Canterbury earthquakes, without a clear pathway to a solution. There is now a real risk that the intended benefits of the Government's intervention in the central city will not be fully realised if the future of the Cathedral remains uncertain. On 28 November 2016, the Working Group to Investigate the Reinstatement of the Christchurch Cathedral (the Working Group) recommended that the Government support the CPT in the reinstatement of Cathedral. 3. On this basis, I consider negotiations with the CPT are required in the immediate future to establish next steps for the reinstatement. I therefore seek your agreement to negotiating parameters for the next phase as follows: Crown capital contribution of $10 million, provided over 5 years or as progress is made; e M 3.1. in is te rs up po rti ng 2. A limited credit support facility of $15 million. This is not expected to be called on, but is designed as surety for the fundraising process to proceed; and 3.3. Authorising joint Ministers to make other decisions on further decisions that are required prior to Cabinet meetings scheduled in 2017. R el ea se d by th 3.2. Background 4. The Cathedral remains significantly damaged, without a clear pathway to a solution. Litigation between the Church Property Trust and the Greater Christchurch Buildings Trust has delayed decision-making. Concern at the lack of progress led to my appointment of a Working Group to Investigate the Reinstatement of the Christchurch Cathedral (the Working Group). Page 1 a8avax9pj8 2017 -01-25 12:06:23 el ea se d R by th e ng rs up po rti te in is M er at re G ch is t hr C ch ur R eg er at en io n COMMERCIAL IN CONFIDENCE 12. Further, I propose that enabling legislation will be developed. This legislation could enable, as required and appropriate: er at Subject to Cabinet agreement to a Crown contribution of $1 O million, this leaves a fundraising gap of $40 - $45 million. It is anticipated that this gap will be filled through the fundraising process, led by the independent fundraising trust to be established. The Greater Christchurch Building Trust has indicated that pledges of approximately $15 million have previously been indicated by potential donors ahead of any joint reinstatement plan. I expect the fundraising target will cover the proposed insurance/maintenance capital fund. 12.1. Establishment of the independent fund raising trust; is t ch 12.2. Definition of relationships between the different entities; ur ch R eg en 11. io n to enable the fundraising process to proceed and give confidence CPT of the Crown's commitment to this project. hr 12.3. Any amendments to the existing planning and consenting regimes; and er C 12.4. Any amendments to other existing legislation (such as the Anglican [Diocese of Christchurch] Church Property Trust Act 2003). It is therefore intended that cross-party engagement on the legislation proposed above will begin shortly. 14. I propose that authority is delegated to the Prime Minister, the Minister of Finance and the Minister supporting Greater Christchurch Regeneration to: ng G re at 13. rs up po rti 14.1. Jointly approve the establishment of any new appropriations required to give effect to Cabinet funding decisions above, and the model and conditions for releasing any funding in the new appropriation/s; and in is te 14.2. Make any other interim decisions that are required prior to Cabinet meetings scheduled in 2017. Consultation The Treasury, the State Services Commission, the Ministry for Business, Innovation and Employment, the Ministry for the Environment, and the Ministry of Justice have been consulted on an earlier draft of this proposal and have been informed of this final proposal. The Ministry for Culture and Heritage and the Department of Internal Affairs have also been informed. by th e M 15. el ea se d Financial Implications 16. DPMC will work with Treasury on establishing terms, conditions and mechanisms for operation of the proposed credit facility over multiple financial years. R 17. Page 3 a8avax9pj8 2017-01-25 12:06:23 el ea se d R by th e ng rs up po rti te in is M er at re G ch is t hr C ch ur R eg er at en io n authorise the Prime Minister, Minister of Finance and the Minister supporting Greater Christchurch Regeneration to jointly approve the model and conditions for releasing any funding in the new appropriation; 8. note that I intend to begin cross-party engagement on the approach to proposed legislation; and 9. authorise the Prime Minister, the Minister of Finance, and the Minister supporting Greater Christchurch Regeneration to be delegated authority to make any other interim decisions that are required prior to Cabinet meetings scheduled in 2017. ur ch R eg en er at 7. io n COMMERCIAL IN CONFIDENCE hr is t ch Hon Gerry Brownlee Minister supporting Greater Christchurch Regeneration er C Date: 7 R el ea se d by th e M in is te rs up po rti ng G re at Attachment A: Cathedral Working Group Report: Executive Summary and Recommendations Page 5 a8avax9pj8 2017-01-25 12:06:23