The new owner will pay around $550 million to Orion, which is 87.6 per cent owned by Christchurch City Holdings, which in turn is owned by Christchurch City Council.

Of the total sale price of $550m, roughly half will be required to repay loans used to buy the networks and for reinvestment to maintain the income stream the Council has received from the network.

Mayor Garry Moore has said that there will be a period of consultation on what will happen to the money once it is clear how much will be paid to Christchurch City Council, and a timetable is set for this. The annual plan does not take into account any of these funds.

Issues to be considered before any final decision on use of the proceeds include:

• The amount of reinvestment needed to protect the existing revenue flows that currently benefit ratepayers.
• Protection of the capital base of the City and Orion.
• Prudent debt levels for Orion given the reduced assets now employed
• Ways in which secure investments can benefit the local economy.