Pania Newton on Reimers Ave, at the Fletcher's AGM. Photo / Anne Gibson
Pania Newton on Reimers Ave, at the Fletcher's AGM. Photo / Anne Gibson
Ihumātao and the NZ International Convention Centre fire were key focus points of Fletcher Building's annual meeting, with a number of shareholders and protesters quizzing the board.
Security costs at the Māngere site - $60,000/month was being spent - and whether insurance would indeed cover the fire, were topics raisedat Eden Park today.
Fletcher forecast $515 million to $565m operating profit in the year to June 30, 2020, compared to $549m last year.
Pania Newton, a shareholder and of Save our Unique Landscape (SOUL), asked about the board's reaction to Heritage New Zealand examining listing the site as Category 1 "the highest protection". Chairman Bruce Hassall said Fletcher was waiting to see what happens. Heritage NZ said this month it might extend the Ōtuataua Stonefields.
Whether the Government would loan Auckland Council approximately $40m to buy the land was not specifically mentioned.
Before the AGM, protesters gathered on Reimers Ave outside the Eden Park venue, waving banners and flags, singing Tūmatauenga, a waiata to the Māori god of war.
Newton said it was her fifth AGM and this Christmas would be her fourth occupying the whenua.
Save Our Unique Landscape protesters on Reimers Ave. Photo / Anne Gibson
Hassall indicated frustration about Ihumātao, saying the business had bought the privately-owned land in good faith, stopped work at Prime Minister Jacinda Ardern's instructions, waited almost four months and hoped for a resolution by the end of this year.
Bruce Hassall, Fletcher chairman. Photo / Supplied
Another shareholder asked about the inconvenience of Ihumātao "and having money tied up" in the land.
Hassall said the matter was in the PM's hands and the board was waiting hopefully on a resolution soon. Another shareholder asked about security costs, hearing back from Hassall that the ball was in the PM's court and nothing could be done in the meantime.
Tim Hunter, a shareholder, asked what the words "respond" meant in Fletcher's Tuesday release about the NZICC site: "Does it mean they will pay?"
Ross Taylor, chief executive, said it meant the insurers had accepted liability and they would respond to claims: "It gives you confidence." Asked again if he was confident of getting the insurance, Taylor said a process was involved, "working out what it will cost".
In recent days, the insurers for the project have now formally confirmed that both the contracts works, and the third-party liability insurance policies will respond to damage and claims caused by the fire," said Fletcher chief executive Ross Taylor.
Ross Taylor, Fletcher CEO. Photo / Jason Oxenham
"We have now had access to the site for two weeks, and are actively working on making the site safe. And in parallel to this, we are also developing the rebuild plan and timetable, which we expect to have finalised by February next year.
Taylor told shareholders: "You have to get in and do the work and programming, scheduling, scoping it and that will take us through to February. I know that won't satisfy you but we just have to do the work."
Tony Mitchell, NZ Shareholders Association chairman, asked about carbon emissions and the board's commitment to sustainability. Hassall and Taylor emphasised the importance the board put on the issue and Taylor cited cement manufacturing and coal consumed in Australia.
Fletcher's AGM presentation on the land. Photo / Fletcher Building
Taylor told the meeting Fletcher intended to scale up its house-building activities to around 1000 units a year and tap into the housing intensification trend "hoping to crack the apartment market through innovative modular construction systems."
Questions were also asked about the share buyback where $106m has been spent so far on a possible $300m plan. One shareholder thanked the board for the company's new direction, reinstating dividends and "turning the company around". Shareholders then gave the board a spontaneous round of applause.
