Prime Minister Bill English announces the Government will provide an extra $120 million for Christchurch's new stadium.

Christchurch ratepayers will have to fork out an additional $120 a year as expenditure on Christchurch's new stadium reaches its peak.

The National Party on Thursday promised an extra $120 million to build the city's new multi-use arena.

The Christchurch City Council has budgeted $253m – money which includes the insurance payout for the old stadium lost to the earthquakes.

SUPPLIED Christchurch's proposed multi-use arena could have a steel roof and a retractable turf.

The council's contribution leaves a $243m shortfall, which would be reduced to $123m with National's pledge.

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The council's customer and community general manager, Mary Richardson, confirmed the cost to ratepayers in a statement on Thursday night.

Primer Minister Bill English says $120m would be in addition to the $59m spent by the Government on land for the project.

Annual rates would increase over the stadium spending period from 2023 to 2026.

"By 2026 the increase for the average residential ratepayer will be $120 to fund the stadium.

"This additional annual cost to ratepayers will continue beyond 2026, but decline over time as debt is repaid, in line with the council's 30 year debt repayment policy," Richardson said.

SUPPLIED The University of Phoenix Stadium in Arizona, United States, features a retractable turf similar to what is proposed in Christchurch.

The council had already budgeted the $253m contribution in its Long Term Plan, so had allocated sufficient funding to meet its 50 per cent share of the stadium under the cost-sharing agreement with the Crown.

Christchurch Mayor Lianne Dalziel has previously said the council would try bring forward its borrowing plan, scheduled to begin in 2023, so it could start construction before 2022.

Meanwhile, a political party bidding war could follow the National's pledge.

In announcing the funding offer in Christchurch on Thursday, Prime Minister Bill English said the funds would give the project certainty.

But while English said National preferred the $496m roofed arena option recommended in a report this week, the party's contribution would only complete funding for a cheaper, open stadium.

Labour Party leader Jacinda Ardern will cover Christchurch rebuild issues in a policy announcement in the city on Sunday, and is expected to pledge money for the city.

The party's Canterbury issues spokeswoman, Megan Woods, said after English's announcement that there were "still lots of unanswered questions, there's still a gap in the funding".

English said National's $120m would be in addition to the $59m spent on land for the project. The type of stadium chosen was up to the city council, as was finding more funds for the preferred version, he said.

A pre-feasibility study released this week by the Christchurch Stadium Trust recommended a $496m multi-use arena with a full roof and a retractable playing field. It saw little opportunity for private funding for the project.

Dalziel said she expected other parties "would also consider the needs of the city and the region in this regard".

"It does still leave a considerable shortfall, but the offer could flush out whether there is private sector interest," she said.

Dalziel said on Wednesday that central government was obliged under the cost-sharing agreement with the council to help fund the project. She ruled out putting more ratepayer money into the project or selling assets to fund it.

She also said building an uncovered stadium was not a viable alternative and would not work financially.

Crusaders chief executive Hamish Riach said that while the rugby franchise welcomed the commitment from National, it highlighted the funding shortfall "no matter which of the options presented in the report you look at".



"It would be a serious shame to not do this properly and not end up with the type of venue that will make Christchurch a serious contender for major events."

More work was needed, which could include seeking private investment and/or funds from the wider region, Riach said.





Asked whether Environment Canterbury would consider imposing a regional rate, acting chairman Steve Lowndes said: "There has been no approach to us to do that, and I'm mindful of what Lianne [Dalziel] has been saying in the paper, that there will be no more imposition on ratepayers in the city."

About 80 per cent of Environment Canterbury's ratepayers are within Christchurch city.