Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search


Airways Corp Restructuring Sound - Minister

22 January 2000

Minister Receives Report into Airways Corporation Restructuring

The Minister of State-owned Enterprises Mark Burton says a report into the restructuring being undertaken by the Airways Corporation has concluded that the restructuring is being been carried out in a commercially-sound way.

"I called for a report from the Crown Company Monitoring Advisory Unit, after concerns were publicly expressed last weekend about redundant air traffic controllers having to be rehired and flown to Christchurch to work, following the transfer of Auckland facilities to Christchurch.

"The report says the cost of the exercise is slightly less than $400,000, not "almost $1 million" as claimed. CCMAU believes the allowances being paid are not excessive. They are similar to those paid to controllers 10 years ago when Wellington services were moved to Christchurch.

"The report also examines safety concerns. It finds that contingency plans are in place for dealing with any failure in the air traffic control system.

"The Airways Corporation's revenue comes from its customers, not the taxpayer, and the hiring of staff on short-term contracts is an operational manner. As Minister, my role under the legislation is to hold the SOE boards accountable for overall performance.

"Nevertheless, I note the findings of the report that the Airways Corporation appears to have followed acceptable processes during the restructuring," Mark Burton said.

(Attached: details of the report's conclusion.)

 At a total cost of $400,000, the cost of this secondment package represents less than one percent of ACNZ's total labour cost – which exceeds $60 million;
 A short-term secondment of 15 controllers to Christchurch is not unreasonable given the nature of the reconfiguration being undertaken;
 The secondment package being offered to controllers, (i.e. an out-of-town allowance plus travel and accommodation) does not appear unreasonable;
 The cost of this secondment is being met from within the restructuring budget, and the restructuring package will result in large ongoing savings, and as such appears commercially sound; and
 In addition to being beneficial to ACNZ and its shareholder, the restructuring package is supported by key ACNZ customers.

© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines

Werewolf: What Does Winston Peters Want His Legacy To Be?

A lot of people in New Zealand seem to resent Winston Peters and the power that he appears to have. “Appears” being the operative word. In reality, Peters will have power only up to the point that he uses it.

By next week, he’ll have become just another junior player in an MMP governing arrangement, battling to hold onto the gains he was promised. More>>


Rising Toll: Road Safety Needs To Be A Higher Priority

Official advice released to the Green Party under the Official Information Act shows that the previous National Government dismissed an option to make road safety its most important transport priority after being told the road toll was rising. More>>


Wellington.Scoop: Arrests At Blockade Of "Weapons Expo"

“We encourage people in Wellington to get down to the Westpac Stadium now for a day of awesome peace action. There will be plenty of food, music and activities to keep us sustained through the day.” More>>


Rorschach Restructuring: PSA Taking Inland Revenue To Court Over Psychometrics

The Public Service Association will be seeing Inland Revenue in Employment Court over its intention to psychometrically test employees reapplying for their roles at the department as part of its controversial Business Transformation restructuring plan. More>>


Nuclear Disarmament: Nobel Peace Prize 2017 Awarded To ICAN

Congratulations from iCAN Aotearoa New Zealand to international iCAN, the other iCAN national campaigns and partner organisations, and the countless organisations and individuals who have worked so hard for a nuclear weapons-free world since 1945. More>>


Expenses: Waikato DHB CEO Resigns

An independent inquiry has identified that Dr Murray had spent more than the agreed $25K allocated for relocation costs, and other unauthorized expenses involving potential financial breaches of the chief executive’s obligations. More>>


Wellington.Scoop: Sad About The Trolley Buses?

The Regional Council’s MetLink is today spending money to tell us that it really loves Wellington’s trolley buses, even though they’re all being taken off our roads by the end of this month. More>>


Post-Election: Preliminary Coalition Talks Begin

New Zealand First will hold post-election preliminary discussions in Wellington with the National Party tomorrow morning and the Labour Party tomorrow afternoon. More>>




Featured InfoPages

Opening the Election