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

Gordon Campbell:
On Gaza And Burning The Israeli Flag

One of the selling points in New Zealand’s campaign for a temporary seat on the Security Council is that we have a pluckily independent voice to offer on international conflicts.

This image is not entirely self-delusional. When we did occupy a temporary UN Security Council seat in the 1990s, New Zealand was forthright about the need for the international community to actively respond to the Rwanda genocide. On April 14, 1994, New Zealand, Nigeria and the Czech Republic were the only nations to call for a forceful UN intervention to halt the killings. It was a proud moment in the diplomatic record of the Bolger government.

What then, is the current National government doing with respect to the slaughter in Gaza? More>>

 

Parliament Today:

TAIC Report: Urgent Recommendations After Melling Rail Accident

The Transport Accident Investigation Commission has made four urgent recommendations to KiwiRail following the accident two months ago (27 May) when a Matangi passenger train collided with a stop block at Melling Station, Lower Hutt. More>>

ALSO:

Red Tape: Local Regulations Go Under Microscope

The Government says it is accepting nearly all of the recommendations the Productivity Commission has made on ways to improve local regulations. More>>

ALSO:

Spending Questions: Claudette Hauiti To Step Aside At Election

National Party President Peter Goodfellow confirms that he has received notification from List MP Claudette Hauiti that she plans to step aside at the 20 September election. More>>

ALSO:

EPA: Board Of Inquiry Rejects Basin Flyover By Majority Of 3 To 1

The independent Board of Inquiry delegated to decide on the Basin Bridge Proposal has, by a majority decision (3 to 1), cancelled the Transport Agency’s Notice of Requirement and declined its resource consent applications for the construction, operation and maintenance of a flyover on State Highway 1 in Wellington City... More>>

ALSO:

Gordon Campbell: On The Non-Apology To Tania Billingsley

The refusal by Prime Minister John Key to issue a personal apology to Tania Billingsley has been accompanied by an array of excuses... Yesterday though, Key’s choice of words indicated that an apology was the last thing on his mind. More>>

ALSO:

Conventions: Winston Peters On The Nation

Winston Peters opens door to standing in East Coast Bays electorate, says it's an "exciting point" and he's thinking about it. "I’ve had a whole lot of people writing to me and calling up and saying ‘why don’t you have a go in East Coast Bays’." More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
Regional
Search Scoop  
 
 
Powered by Vodafone
NZ independent news