The diagnosis was made in the context of responding to mayoral comments made last week. According to Bob, Treasury are looking to the council to raise rates, or sell assets, to recover earthquake costs. The offending part of the mayor's comments reported in the Press on the 1st of February (here) was that
Under the Canterbury Earthquake Recovery Authority Act, the Government could force the city to raise rates to cover costs, or sell off assets, he said.
"CERA has the ability to say this is how you have to meet your costs, and can make us take measures such as raising rates or selling assets."
Mr Parker would not reveal the source of the comments.
As Gerry knew, and Bob obviously did not, the CERA legislation prohibits the Earthquake Recovery Minister from directing councils to set rates. Sadly this little episode has the potential to increase the pressure to have unrepresentative local government implemented in Christchurch.