Local Govt | National News Video | Parliament Headlines | Politics Headlines | Search

 


Greater returns from investments, achievable and essential


Media Statement

Greater returns from investments, achievable and essential: Auckland Council Investments


Following up on comments regarding the forecast rate of return on equity of ACIL owned Ports of Auckland, ACIL Chief Executive Gary Swift today said that the anticipated rate of return of 12% was realistic.

“ACIL has an obligation under the establishing legislation to bring a strong commercial focus to the business, and POAL has an obligation under the Port Companies Act to be a successful business,” he said.

“Suggestions that the shareholder and the Auckland Council should accept a lower return on an asset as large as the port, is business nonsense. We need to provide a good return to the Council to help fund essential infrastructure in Auckland. To do anything less, results in ratepayers subsidising the activities of POAL”.

Mr Swift confirmed that a benchmarking report showing a comparative analysis of returns by similar companies operating in different countries indicated that the current rate of return on equity by the Port was not satisfactory. The return on equity by other ports averaged 13.6% and the range was between 5.4% and 22.2%. “However different companies and countries have different accounting policies, structures and operating models, which makes benchmarking difficult,” Mr Swift cautioned.

“The results of the POAL Board developing a long term strategy to achieve an improved rate of return showed that a return on equity of 12% was realistic and achievable by 30 June 2016. This is the minimum return the shareholder expects,” he said.

“To achieve this return, the company undertook an in-depth review of its structure and business, of which labour productivity is but one aspect. An increase in labour productivity is equivalent to a 20% increase in the availability of berth space and defers the future need for the port to expand. Changes are being made across the organisation to implement the other strategies.”

Mr Swift said that comments made about these strategies being designed to privatise the port are incorrect. “There are no plans to privatise the port,” he said.

ENDS


Background: Auckland Council Investments Limited is a Council controlled organisation, owned by Auckland Council. ACIL owns the shares in Ports of Auckland Limited, Auckland Film Studios Limited and 22.4% of the shares in Auckland International Airport Limited.

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

 

Departure Speech: Governor-General’s State Farewell Luncheon

"...Unfortunately I was unable to get to the Antarctic, the Chatham Islands and the Kermadecs. A dicky heart thwarted our travel to the Antarctic; and even though I volunteered to parachute into the Kermadecs to join the Young Blake expedition, time, commitments and officials frustrated my plans to visit the Kermadecs and Chathams." More>>

ALSO:

New Research: Most Homeless People Working Or Studying

“The cost of housing has been rising without corresponding increases in income, whilst the number of state houses per capita has been in decline. Many low-income people are missing out on housing, whether we recognise them as ‘homeless’ or not. More>>

ALSO:

Post-Traynor: New Offender Info Sharing Plan

“This Bill delivers on that step-change by moving away from name-based records held by individual agencies to a shared, anchor identity based on unalterable information, such as fingerprints and facial recognition. It also gives agencies access to the drivers’ licence photo database and birth, death and marriages information." More>>

  • NZ Law Foundation - New $2M fund for research on information challenges
  • Littoral: New Ship To Deliver Enhanced Naval Capability

    Defence Minister Gerry Brownlee says the Government has approved a Ministry of Defence and New Zealand Defence Force recommendation to request tenders for a new naval ship to support littoral operations. More>>

    July:

    After King's Labour Snub: Māori Party And Kiingitanga To Work Together

    Māori Party Co-leaders Te Ururoa Flavell and Marama Fox met with Kiingitanga representatives in Wellington yesterday to discuss working together on key issues for the betterment of Māori. More>>

    ALSO:

    Waitangi Claim On Rehabilitation: The 'Justus' System For Māori Not Good Enough

    Closing statements at the Waitangi Tribunal case against Corrections called for immediate steps and a comprehensive review to address the high rate of Māori reoffending. More>>

    ALSO:

    Advice: PM Sets Rules For Ministers' Treatment Of Public Servants

    Prime Minister John Key has laid down the law about the way ministers and public servants should interact, saying ministers may not always like the advice they receive, but they must listen to it carefully, respectfully and professionally. More>>

    Gordon Campbell: On The Funding Changes In Special Needs Education, And Uber

    The plan to strip out the educational support for older “special needs” children in order to meet the existing shortfall in funding for special needs in early childhood education is so miserly and relentlessly stupid as to defy belief… More>>

    SPECIAL EDUCATION (& More):

    Online Learning Plans:

    Get More From Scoop

     

    LATEST HEADLINES

     
     
     
     
     
     
     
     
     
    Regional
    Search Scoop  
     
     
    Powered by Vodafone
    NZ independent news