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


ACIL clarifies role and target return for Ports of Auckland

Press release
8 March 2012

ACIL clarifies role and target return for Ports of Auckland

Following the Ports of Auckland (PoAL) decision to introduce competitive stevedoring, Auckland Council Investments Limited (ACIL) is clarifying the governance model for PoAL.

ACIL Chief Executive, Gary Swift, says he would like to clarify the respective roles of ACIL, the Mayor and Auckland Council.

“ACIL’s legislative obligation is to bring a strong commercial focus to the ownership and governance of PoAL - in other words, to deliver a commercial return.

“It’s ACIL, not Auckland Council, which has the obligation for the governance of PoAL; the council’s role is to appoint a board of directors for ACIL and establish a yearly Statement of Intent. ACIL is then responsible for establishing a Statement of Corporate Intent for PoAL and for appointing its board of directors,” says Mr Swift.

“The Mayor, Auckland Council or ACIL does not manage the operations of PoAL and that includes its employee relations. Those decisions are wholly a matter for PoAL’s management and board,” he says.

Mr Swift says new appointments were made to the PoAL board in 2010. This board has put in place new strategies to increase profitability, designed to provide an adequate financial return, at the direction of ACIL.

These strategies include labour flexibility, increasing revenue per container, freezing non-essential capital spending and completing a review of PoAL operating processes to ensure PoAL is operating effectively and efficiently.

Mr Swift says clarification is also required on the return target from PoAL.

By implementing the new strategies, the profitability of PoAL would be equivalent to a 12 per cent return on shareholders’ funds by 30 June 2016. Current return is 6 per cent.

“The 12 per cent over five years was agreed to in order to achieve a better return for Auckland ratepayers and ensure PoAL is as successful as it can be. It is a measure we’ve set, which is actually its net profit after tax as a percentage of their shareholder funds, not a dividend or return on investment of that level,” he says.

It is important to note that this target was set prior to the commencement of collective bargaining and was incorporated into the thinking that informed PoAL initial offer, which excluded the full contracting out model.

Greater labour utilisation formed only part of PoAL’s strategy for achieving a better return and it is wrong to assign blame for the current situation on the target, he said. If the target hadn’t been put in the SOI the PoAL board would still be implementing the same strategies.


Note to Editors:
There are a number of ways of measuring a company’s profitability; return on shareholders funds (or equity), return on total assets or return on the market value of the investment. Returns can also be defined as net profit after tax or dividends, or net operating profit after tax. ACIL has chosen to measure PoAL’s profitability as net profit after tax as a percentage of shareholder funds.

Background information on ACIL
Auckland Council Investments Limited (ACIL) is a Council Controlled Organisation (CCO) of Auckland Council. Its role is to manage Auckland Council’s major equity investments.

The value of investments that ACIL owns and/or manages is approximately $1.7 billion. In addition to the investment in POAL, it owns 22.4% of the shares in Auckland International Airport Limited and 100% of the shares in Auckland Film Studios Limited. It also manages a diversified financial assets portfolio for the Council.

The return on these investments, in the form of dividends received by ACIL on behalf of Auckland Council, are invested by the council into activities that help to make Auckland the world’s most liveable city.

© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines

Pike River Recovery: Loader Driven By Russell Smith Recovered

A loader driven by former miner Russell Smith at the time of the Pike River Mine explosion has now been recovered from 1581m up the 2.3km drift access tunnel.
The recovery of the loader went smoothly and to plan. Pike River families were able to witness it being towed to a storage area, Chief Operations Officer Dinghy Pattinson says.
“We reached the loader at the end of last week, and then conducted a very deliberate and exacting forensic examination of the vehicle and operational zone... More>>


E-Cigarettes: Vaping Legislation Passes

Landmark legislation passed today puts New Zealand on track to saving thousands of lives and having a smokefree generation sooner rather than later, Associate Health Minister, Jenny Salesa says. The Smokefree Environments and Regulated Products (Vaping) ... More>>


Housing: Government Delivers On Rental Reforms Promise

The Government has delivered on its promise to New Zealanders to modernise tenancy laws with the passing of the Residential Tenancies Amendment (RTA) Bill 2020 today, says Associate Minister of Housing (Public Housing), Kris Faafoi. “The Residential ... More>>


National: $4 Billion Investment To End Wellington’s Congestion Woes

A National Government will invest another $4 billion in transport infrastructure across Wellington, igniting the economy and delivering the congestion-busting solutions the region has long been crying out for, National Party Leader Judith Collins says. ... More>>


Gordon Campbell: On The Virtues (and Fluffed Opportunities) Of The Operation Burnham Report

One unspoken rule of thumb in any official public inquiry is : whatever you do, don’t conclude you were made to listen to “a litany of lies” even if the evidence of a deliberate cover-up is right there under your nose. In that respect, the report ... More>>


Office Of The Speaker: Parliament Is Revamping Its Rules

Today, the Standing Orders Committee’s report on the review of Standing Orders was presented to the House. The Speaker of the House, the Rt Hon Trevor Mallard, chairs the committee. He said today that the 2020 review will make our rules more ... More>>

Your Vote 2020: Bringing Election Coverage To Viewers Across TVNZ Channels And Platforms

As New Zealand gets ready to head to the ballot box this September, 1 NEWS is bringing voters comprehensive coverage and analysis of this year’s General Election. TVNZ’s coverage will draw on the depth of experience held across the 1 NEWS team, says Graeme ... More>>

Economy: 30% Believe Households Worse Off, 298,000 Expect To Lose Jobs

64% of New Zealanders feel the economic position of their households is the same or better than a year ago – and 30% think it is worse or much worse, while 298,000 think they will lose their jobs in the next 12 months. Households’ perceptions ... More>>

State Services Commission: Findings Of Investigation Into COVID-19 Active Cases Privacy Breach

Deputy State Services Commissioner Helene Quilter has today announced the findings of an investigation into a breach of privacy regarding sensitive personal information. The investigation looked into who or what caused the disclosure of the information, ... More>>

International Security: New Zealand Suspends Extradition Treaty With Hong Kong

The New Zealand Government has suspended its extradition treaty with Hong Kong and made a number of other changes in light of China’s decision to pass a national security law for Hong Kong, Foreign Affairs Minister Winston Peters says. More>>


Energy: 100% Renewable Electricity Grid Explored With Pumped Storage ‘battery’

The Government is taking a significant step toward its goal for 100% renewable electricity generation in a move that could be a game changer for consumers and the creation of a low-emissions economy, Energy & Resources Minister Megan Woods said. ... More>>






InfoPages News Channels