New Zealand Agricultural Show offered financial safety net

The popular New Zealand Agricultural Show (formerly the Canterbury Agricultural and Pastoral Show) has been offered a loan of up to $1 million from Christchurch City Council – providing the event with a financial safety net.

The loan has been agreed allowing ongoing financial obligations to be met if this year’s New Zealand Agricultural Show has to be cancelled because of a COVID-19 lockdown or change in alert levels.

Should the loan be required, it will be funded through borrowing. It will have no impact on rates as the interest CAPA will have to pay on the loan will cover the Council’s borrowing costs.

Christchurch Deputy Mayor Andrew Turner advises “the Show did not go ahead last year because of the pandemic, but the CAPA Board have decided to proceed with this year’s event.”

“There is considerable risk associated with planning a major event during a pandemic and the Board is concerned that if COVID-19 forces the cancellation of this year’s Show, they would incur a substantial financial loss that could ultimately lead the organisation into voluntary liquidation.

“To help alleviate that financial stress, the Council has approved a loan of up to $1 million which CAPA can draw down on if the show has to be cancelled. The loan means that CAPA will be able to meet its financial obligations without the spectre of liquidation.

“The New Zealand Agricultural Show has a proud history that dates back 157 years. We want to give the organisers confidence that they can proceed with this year’s show because it is a fixture on Christchurch’s calendar that many people across the region really enjoy and look forward to each November.’’

Should the loan be required, it will be funded through borrowing. It will have no impact on rates as the interest CAPA will have to pay on the loan will cover the Council’s borrowing costs.

To minimise any financial risk to the Council, the loan will also be secured against land and buildings that CAPA owns next to the Canterbury Agricultural Park in Curletts Road.

Image courtesy of Eventfinda