web analytics

Cost of the Ports of Auckland fiasco

Written By: - Date published: 11:03 am, March 29th, 2012 - 6 comments
Categories: accountability, auckland supercity, business, transport - Tags: , , ,

Bloggers seem to be asking the best questions on the cost of the POAL fiasco. Here’s NRT:

Asleep at the wheel

How much has the Ports of Auckland dispute cost Auckland’s ratepayers? As the ultimate owners of the port, you’d expect the Auckland Council to take a strong interest in this. However, you’d be wrong. According to an OIA request lodged through the fyi.org.nz website,

Auckland Council and Auckland Council Investments Limited do not hold any information in connection with the cost of the dispute.

Think about that for a moment. Auckland Council is relying on the dividend stream from a profitable port to help pay for Auckland’s rail network. And yet they claim to have no idea of the cost of this dispute, and therefore how it will affect their plans. Its even worse in the case of ACIL; they’re paid big bucks for governance and oversight of the Auckland Council’s investments, including the port. But apparently they don’t have any idea either. Which invites the question: what exactly are they doing to earn that money? Because it sure as hell isn’t “taking an active interest so as to maximise their shareholder’s profits”.

This is an appalling revelation. It shows both the Auckland Council and ACIL are asleep at the wheel and failing to exercise the degree of oversight and governance we would expect. The people of Auckland deserve better than this. And they should demand it at the ballot box.

Unbelievable. Stepping in to the void left by the Council, Robert Winter has a go at estimating the cost:

Cost of the Ports Dispute?

No Right Turn shows, astonishingly, that neither the Council nor ACIL are keeping track of the costs of the management-driven POAL dispute. It is baffling that no such data are available, so here’s my rough estimate:

2011 Operational revenue  $175.4 million

divided by 365 days

approx. $480,000 daily operational revenue

Let’s assume (generously) that the port is working at 15% of capacity as a result of the dispute:

approx. $408,000 daily operational revenue loss

Additional costs as an effect of the dispute (legal fees, consultancy advice, extra security, research charges, PR costs), guessed at $20,000 daily:

immediate losses about $430,000 daily (lost operational revenues plus extra costs). The real figure is probably higher.

So, let’s assume that the dispute will go on at least until May 16th (unless the management strtaegy folds, which is likely):

49 days (from today) at $$430,000 daily = $21.1 million losses

Management would want to off-set salary and other  savings, of course.

Then one would want to add added costs for the economy e.g. training in supplies from Tauranga, disruptions to producers and consumers as a result of materials stuck on the wharves or waiting elsewhere to be sent, the cost to the Council of Alan Galbraith etc. (and the costs to MUNZ and its members!)

Any suggestions about how to improve this very rough calculation?

No wonder the Council doesn’t want to know.

6 comments on “Cost of the Ports of Auckland fiasco”

  1. KeepOurAssetsDon'tSell. 1

    Link:http://mana.net.nz/2012/03/sack-the-board-john-minto-mana-vp/

    “Sack the Board | John Minto (Mana VP)”

    ““Auckland Council has no option but to sack the Ports of Auckland’s Board of Directors” says Mana Vice President John Minto following yesterday’s Employment Court decision.

    The Court has upheld and extended an injunction to prevent the Board taking action to sack the workers for another two months. The Court has also said that the Board has a case to answer regarding the legality of their decision to contract out work at the port and their failure to act in good faith”.

    “The court decision is a solid win for the workers”.

    “It’s obvious to everyone the Port has contempt for its employees and their right to decent employment conditions. It’s a long time since we’ve seen such naked nastiness from an employer”.”

    ““This contempt has overridden their responsibilities to the people of Auckland. They are prepared to sacrifice consumers to increased costs and even allow a negative impact on New Zealand’s GDP in their irrational pursuit of the union”.

    “How many more millions of dollars can Auckland lose because a pack of capitalist arseholes are hell-bent on sacking blue collar workers who are standing up for their rights?”

    “Board Directors Richard Pearson, Graeme Scott, Andrew Bonner, Rob Campbell, Liz Coutts and Wayne Walden must go”.

    Mana supporters will be attending a 10am protest at the Auckland City Council meeting at Manukau City Centre tomorrow to demand the board be sacked.”

  2. In breaking news the Employment Court decision is out.  I have not seen a copy but reports are the Court has found the Union has a “seriously arguable case” that Port had breached ERA and undermined barganing.

     
    Time for saner heads to prevail.

  3. Some aspects of the Judgement;

    [1] These are my reasons for issuing interim injunctions on 27 March 2012 in the following terms:

    (i) The defendant will take no further steps to advance or implement the proposal to make the plaintiff’s members redundant.

    (ii) The defendant will not dismiss the plaintiff’s members.

    (iii) The defendant will not employ or engage Drake New
    Zealand Ltd or Allied Workforce Ltd or any other person to
    perform the work of striking or locked-out employees in
    breach of s 97 of the Employment Relations Act 2000.

    (iv) The defendant will instruct Drake New Zealand Ltd and
    Allied Workforce Ltd and any other contractor employed or
    engaged by the defendant to cease any form of advertising,
    training or recruitment or any form of preparation for those
    activities on behalf of the defendant or otherwise.

    (v) The defendant will not make any statement to, or which
    could, encourage any union member to seek or accept
    employment with the contractors identified in (iv) above.

    (vi) In the event that the defendant intends to employ or engage
    any other person to perform work covered by the collective
    agreement in dispute, it will give the plaintiff 48 hours’
    notice to enable the plaintiff to apply for relief.

    [8] The defendant will not take any further steps in relation to
    applications for voluntary redundancy until 5pm on Friday 30 March 2012 orfurther order of the Court.

    [24] I find that there is a seriously arguable case that the actions of the defendant in allegedly threatening to and then deciding to contract out the work on which the union employees were engaged under the expired collective agreement whilst collective bargaining was on foot for a new collective agreement was likely to undermine and arguably has undermined the bargaining. It will also, arguably, undermine the bargaining in the future. It is therefore seriously arguable that those actions have breached s 32(1)(d)(iii) of the Act. This section provides that the duty of good faith in s 4 of the Act requires a union and an employer bargaining for a collective agreement to do a number of things. These include the requirement in subsection (d)(iii) that the union and the employer:
    must not undermine or do anything that is likely to undermine the bargaining or the authority of the other in the bargaining.

    27] Mr Carruthers submitted that, even under the Employment Contracts Act 1991, mass dismissals for bargaining purposes had been found to be unlawful in McCulloch v New Zealand Fire Service Commission3 and New Zealand Seafarers’ Union Inc v Silver Fern Shipping Ltd (No 2).4

    • Craig Glen Eden 3.1

      Thats a spanking in anyones language, holy heck. Its well deserved though and certainly paints a very clear picture of a an employer acting in very bad faith. Time for Len to stand up and take some action before this port starts producing a big loss.

  4. Mel 4

    Yes it’s time for the Auckland Council to stand up and deal with the dysfunctional POA board.

    It’s also time for all those self-serving individuals who blamed the union for the Port’s problems to eat a little humble pie.

    They never seemed to understand the irony in their blaming of the port workers for the POA board’s actions. 😉

Links to post

Recent Comments

Recent Posts

  • Government must review state sector retirement investment
    The State Sector Retirement Savings Scheme has no business investing in companies which manufacture cluster bombs, anti-personnel mines and nuclear weapons, Labour MP and Parliamentarians for Global Action executive member Su’a William Sio says. “I endorse the call made by the ...
    1 hour ago
  • Councils shouldn’t rush into Easter Trading
    City and district councils must ensure they don’t rush into trading on Easter Sunday ahead of local body elections next month, Labour’s Pacific Islands Affairs spokesperson Su’a William Sio says. “This decision must be taken seriously and only after extensive ...
    1 hour ago
  • Minister can’t wash hands of illegal KiwiSaver investments
    The Minister responsible for appointing default KiwiSaver providers should take responsibility for ensuring they act legally, Labour’s Finance spokesperson Grant Robertson says. “The National Government has now had confirmed what they were told more than a week ago – that ...
    4 hours ago
  • Government railroading Maori Land Bill through
    Maori Development Minister Te Ururoa Flavell seems determined to railroad his Te Ture Whenua Maori Bill through despite the large number of submitters in opposition to the bill, says MP Meka Whaitiri, whose Ikaroa-Rāwhiti electorate contains nearly 30 per cent ...
    1 day ago
  • Government turns a blind eye to struggling sole parents
    Social Development Minister Anne Tolley’s claims that her Government’s work with sole parents is her biggest success are in tatters after a major increase in homelessness amongst that group, says Labour’s Social Development spokesperson Carmel Sepuloni. “Anne Tolley is seriously ...
    1 day ago
  • Time has come for state apology on abuse
    Labour is today calling on the Government to issue an apology for historic abuse in state institutions. Speaking after the launch of Elizabeth Stanley’s book “The Road to Hell; state violence against Children in Post-war New Zealand”, Labour’s Justice spokesperson ...
    1 day ago
  • It’s OK to have a few slaves, just not too many? Minimum wage loophole hasn’t gone away
    New Zealand still needs legislation to ensure adult New Zealanders are not exploited by being taken on as contractors for less than the equivalent of the minimum wage, says Labour list MP David Parker.  “My Minimum Wage (Contractor Remuneration) Amendment ...
    1 day ago
  • Lessons from the Future of Work Commission: Building Wealth from the Ground Up
    Good morning, and thank you for attending today’s Future of Work Seminar here in Wellington. I want to particularly acknowledge Beth Houston who has spent many hours pulling together the programme for today’s event, and to Olivier and the staff ...
    1 day ago
  • Backbencher Matt’s Bill is a Doocey
    The latest National Member’s Bill pulled from the ballot is yet another waste of Parliament’s time and shows the Government’s contempt for the House and the public with much more important issues needing debate, says Labour’s Shadow Leader of the ...
    2 days ago
  • Gun laws creaking under the strain
     Questions have to be asked  after surprising revelations at the Law and Order Select Committee about the police and their ability to manage the gun problem in New Zealand, says Labour’s Police spokesperson Stuart Nash.  “The lack of resources is ...
    2 days ago
  • Most homeless are working poor – Otago Uni
    The finding by Otago University researcher Dr Kate Amore that most homeless people are in work or study is one of the most shocking aspects of the housing crisis, says Labour’s Housing spokesperson Phil Twyford. “Social service agencies report many ...
    2 days ago
  • Māori seats entrenched by Tirikatene Bill
    National and the Māori Party need to support my member’s Bill which is designed to entrench the Māori electorate seats in Parliament, Labour’s Te Tai Tonga MP Rino Tirikatene says. “Under the Electoral Act the provisions establishing the general electorates ...
    2 days ago
  • Trade dumping bill could hurt NZ industries
    The Commerce Select Committee is currently hearing submissions on the Trade (Anti-dumping and Countervailing Duties) Amendment Bill. This bill worries me. I flagged some major concerns during its first reading.   I am now reading submissions from NZ Steel, ...
    GreensBy Mojo Mathers
    3 days ago
  • Just 8 per cent of work visas for skills shortages
    Just 16,000 – or 8 per cent – of the 209,000 work visas issued last year were for occupations for which there is an identified skills shortage, says Labour Immigration spokesperson Iain Lees-Galloway. “The overwhelming majority of the record number ...
    3 days ago
  • Hard won agreement shouldn’t be thrown away
    The Government should ignore talk across the Tasman about doing away with the labelling of GM free products, says Labour’s Health spokesperson Annette King. “Labelling of genetically modified products was a hard won agreement in 2001 by Australian and the ...
    3 days ago
  • National’s privatisation Trojan horse
     The National government is using the need to modernise the school system as a Trojan horse for privatisation and an end to free public education as we know it, Labour’s Education spokesperson Chris Hipkins says.  “There is no doubt that ...
    3 days ago
  • Shameless land-banking ads show need for crackdown
    The fact that more than 300 sections are shamelessly being advertised on Trade Me as land-banking opportunities during a housing crisis shows the need for a crackdown on property speculators, Leader of the Opposition Andrew Little says. “Of the 328 ...
    3 days ago
  • Standard and Poor’s warning of housing crisis impact on banks
    The National Government’s failure to address the housing crisis is leading to dire warnings from ratings agency Standard and Poor’s about the impact on the strength of the economy and New Zealand banks, says Labour’s Finance spokesperson Grant Robertson. “Standard ...
    3 days ago
  • Ihumatao needs action not sympathy
    The Petition of Save Our Unique Landscape (SOUL) calling on Parliament to revoke Special Housing Area 62 in order to protect the Ihumatao Peninsula and Stonefields, has fallen on deaf ears, says the Labour MP for Mangere Su’a William Sio.  ...
    3 days ago
  • Student visa fraud & exploitation must stop
    The Government must act immediately to end fraud and exploitation of international students that threatens to damage New Zealand’s reputation, Leader of the Opposition Andrew Little says. ...
    4 days ago
  • Government needs to show leadership in reviewing monetary policy
    The Reserve Bank’s struggles to meet its inflation target, the rising exchange rate and the continued housing crisis shows current monetary policy needs to be reviewed - with amendments to the policy targets agreement a bare minimum, says Labour’s Finance ...
    4 days ago
  • Slash and burn of special education support
    Slashing the support for school age children with special needs is no way to fund earlier intervention, Labour’s Education Spokesperson Chris Hipkins says.  “National’s latest plan to slash funding for children with special needs over the age of 7 in ...
    5 days ago
  • National’s Pasifika MPs must have free vote
      Pacific people will not take kindly to the Government whipping their Pacific MPs to vote in favour of a  Bill that will allow Sunday trading  at Easter, says Labour’s Pacific Island Affairs spokesperson Su’a William Sio.  “We are seeing ...
    1 week ago
  • Maritime Crimes Bill – balancing security and free speech
    Parliament is currently considering the Maritime Crimes Amendment Bill, which would bring New Zealand up to date with current international rules about maritime security. The debate around the Bill reflects two valid issues: legitimate counter-terrorism measures and the right to ...
    GreensBy Kennedy Graham
    1 week ago
  • Teachers’ low wages at the centre of shortages
      Figures that show teachers’ wages have grown the slowest of all occupations is at the heart of the current teacher shortage, says Labour’s Education Spokesperson Chris Hipkins.  In the latest Labour Cost Index, education professionals saw their wages grow ...
    1 week ago
  • Government’s Tax Law undermines common law principles
    A tax amendment being snuck in under the radar allows changes to tax issues to be driven through by the Government without Parliamentary scrutiny, says Labour’s Revenue spokesman Stuart Nash. “The amendment allows any part of the Tax Administration Act ...
    1 week ago
  • Government slippery about caption funding
      The Government has refused to apologise for taking the credit for funding Olympic Games captioning when the National Foundation for the Deaf  was responsible, says Labour’s spokesperson on Disability Issues Poto Williams.  “This shameful act of grandstanding by Ministers ...
    1 week ago
  • Default KiwiSaver investments should be reviewed
    The investments of the default KiwiSaver providers should be reviewed to make sure they are in line with New Zealanders’ values and expectations, says Labour’s Finance spokesperson Grant Robertson. “Most New Zealanders would be appalled that their KiwiSaver funds are ...
    1 week ago
  • New ministry should look after all children
    The Government has today shunned well founded pleas by experts not to call its new agency the Ministry for Vulnerable Children, Labour’s Spokesperson for Children Jacinda Ardern says.  “Well respected organisations and individuals such as Children's Commissioner Judge Andrew Becroft ...
    1 week ago
  • Ratification okay but we need action
    Today’s decision to ratify the Paris agreement on Climate Change by the end of the year is all well and good but where is the plan, says Labour’s Climate Change spokesperson Megan Woods.  “The Government’s failure to plan is planning ...
    1 week ago
  • Stats changes can’t hide unemployment reality
    Today’s minor drop in unemployment numbers is nothing to celebrate given the changes made to the official numbers that cut thousands of people looking for work out of the jobless rate, says Labour’s Employment spokesperson Grant Robertson. “Making any comparisons ...
    1 week ago
  • Stats changes can’t hide unemployment reality
    Today’s minor drop in unemployment numbers is nothing to celebrate given the changes made to the official numbers that cut thousands of people looking for work out of the jobless rate, says Labour’s Employment spokesperson Grant Robertson. “Making any comparisons ...
    1 week ago
  • Auckland’s affordable homes plummet 72% under National
    Comprehensive new data from CoreLogic has found the number of homes in Auckland valued at under $600,000 has plummeted by 72 per cent since National took office, Leader of the Opposition Andrew Little says. “This data tracks the changes in ...
    2 weeks ago
  • Govt should face the facts not skew the facts
    National appears to be actively massaging official unemployment statistics by changing the measure for joblessness to exclude those looking online, says Labour’s Employment spokesperson Grant Robertson. “The Household Labour Force Survey, released tomorrow, no longer regards people job hunting on ...
    2 weeks ago
  • More voices call for review of immigration policy
    The Auckland Chamber of Commerce is the latest credible voice to call for a review of immigration and skills policy, leaving John Key increasingly isolated, says Opposition Leader Andrew Little. “The Prime Minister is rapidly becoming a man alone. He ...
    2 weeks ago
  • Better balance needed in Intelligence Bill
    Labour will support the NZ Intelligence and Security Bill to select committee so the issues can be debated nationwide and important amendments can be made, says Opposition Leader Andrew Little. ...
    2 weeks ago
  • Serco circus has no place in NZ
    A High Court judgment proves National’s private prison agenda has failed and the Serco circus has no place in New Zealand correctional facilities, Labour’s Corrections spokesperson Kelvin Davis says. ...
    2 weeks ago
  • State house sell-off a kick in the guts for Tauranga’s homeless
    The Government’s sale of 1124 state houses in Tauranga won’t house a single extra homeless person in the city, says Labour’s Housing spokesperson Phil Twyford. “Tauranga, like the rest of New Zealand, has a crisis of housing affordability and homelessness. ...
    2 weeks ago
  • Axing Auckland’s affordable quota disappointing
    Auckland Council has given away a useful tool for delivering more affordable housing by voting to accept the Independent Hearing Panel’s recommendation to abolish affordable quotas for new developments, says Labour’s Housing spokesperson Phil Twyford. ...
    2 weeks ago
  • Ae Marika! Māori Party Oath Bill fails
    The Māori Party must reconsider its relationship with National after they failed to support Marama Fox’s Treaty of Waitangi Oath bill, Labour’s Maori Development Spokesperson Kelvin Davis says. ...
    2 weeks ago
  • Police Minister all platitudes no detail
    The Police Minister must explain where the budget for new police officers is coming from after continuously obfuscating, Labour’s Police spokesperson Stuart Nash says. ...
    2 weeks ago
  • Lost luggage law shows National’s lost the plot
    The Government has proven it can’t address the big issues facing the tourism industry by allowing a Members Bill on lost luggage to be a priority, Labour’s Tourism spokesman Kris Faafoi said. “Nuk Korako’s Bill drawn from the Members’ Ballot ...
    2 weeks ago
  • Hiding behind the law – but can’t say which law
    National is refusing to come clean on what caused the potential trade dispute with China by hiding behind laws and trade rules they can’t even name, says Labour’s Trade and Export Growth spokesperson David Clark. “National admitted today that an ...
    2 weeks ago
  • Work visas issued for jobs workless Kiwis want
    Thousands of work visas for low-skilled jobs were issued by the Government in the past year despite tens of thousands of unemployed Kiwis looking for work in those exact occupations, Labour’s Immigration spokesperson Iain Lees-Galloway says. “A comparison of the ...
    2 weeks ago
  • Kiwis nationwide now paying for housing crisis
    The Government’s failure to tackle the housing crisis is now affecting the entire country with nationwide house price inflation in the past year hitting 26 per cent, Labour’s Housing spokesperson Phil Twyford says. “None of National’s tinkering or half-baked, piecemeal ...
    2 weeks ago
  • OCR cut piles pressure on Government
    Today’s OCR cut must be backed by Government action on housing and economic growth, says Labour’s Finance spokesperson Grant Robertson. “Reserve Bank Governor Graeme Wheeler’s monetary policy statement underlines the limits of Bill English’s economic management. He says growth is ...
    2 weeks ago
  • Government must explain the McClay delay
    Todd McClay must explain why it took two months for him to properly inform the Prime Minister about China’s potential trade retaliation, says Labour’s Trade and Export Growth spokesperson David Clark. “This may be one of the most serious trade ...
    2 weeks ago
  • OCR cut would be vote of no confidence in economy
    If Reserve Bank Governor Graeme Wheeler cuts the OCR tomorrow it would show that, despite his loudly-voiced concerns about fuelling the housing market, the stuttering economy is now a bigger concern, says Labour’s Finance spokesperson Grant Robertson. “Bill English and ...
    2 weeks ago
  • Leading medical experts back Healthy Homes Bill
    Leading medical experts have today thrown their weight behind my Healthy Homes Guarantee Bill, saying it will improve the health of Kiwi kids, Leader of the Opposition Andrew Little says. “The Bill sets minimum standards for heating, insulation and ventilation ...
    2 weeks ago
  • Minister, it’s time to listen to the Auditor General
    Minister of Health Jonathan Coleman needs to listen to the independent advice of the Auditor General and review the capital charge system imposed on District Health Boards, says Labour’ Health Spokesperson Annette King.  “The capital charge on DHBs has been ...
    2 weeks ago

Public service advertisements by The Standard

Current CO2 level in the atmosphere