25 Jan 2011

Council profits in sale of refuse company

3:41 pm on 25 January 2011

Christchurch City Council says its controversial purchase of a loss-making recycling company 18 months ago has been vindicated, with the firm returning to profit under its ownership.

The council bought the private firm Meta for $19.1 million in July 2009, saying the company's precarious financial position threatened the city's kerbside collection service.

It now says Meta is not only making a profit, but has already paid back about a tenth of the $18 million the council borrowed in order to buy it.

Renamed EcoCentral, Meta has been sold for $9.1 million to the council's investment arm, Christchurch City Holdings, which will take over its remaining debts.