Industrial row at port rocks boat at council

Councillors yesterday voted 12-9 to support the board of the port company. Photo / NZ Herald

Industrial unrest on the Auckland wharves is causing political ructions at the Auckland Council, which owns 100 per cent of the port company.

Councillors yesterday voted 12-9 to support the board of the port company in the industrial dispute after claims of political grandstanding and a one-sided presentation on the issue.

Gary Swift, the chief executive of the council's investment arm, told the accountability and performance committee that this week's loss of a $20 million shipping service, which the ports company has blamed on striking workers, would have a financial cost for the council.

Mr Swift said it was too early to know how much the lost contract and strike action would cost, but Auckland Council Investments' overall dividend of $26.8 million this financial year, of which $18 million was forecast from the ports company, was in doubt.

After a briefing from Mr Swift on the industrial situation, Citizens & Ratepayers leader Christine Fletcher tabled an amendment to support the board and any actions to achieve its business plan.

She said the business plan, which had been presented to councillors last month, stressed the need for labour market flexibility and competition from other ports.

The amendment followed Mrs Fletcher's demand on Tuesday for answers to avoid financial consequences for ratepayers. She also attacked the former Auckland Regional Council for driving the company into financial crisis by "pillaging" its balance sheet for excessive transport dividends.

Councillor Mike Lee, the former ARC chairman, said he deplored Mrs Fletcher's political grandstanding in her unwarranted attack on the ARC, which had nothing to do with the current dispute.

More relevant, he said, was "a culture of distrust going back 30, 40 years between management and the union and, I have to say, certain changes to the board in recent months".

Councillor Sandra Coney said she could not support the amendment because the committee was being asked to make a decision without knowing the full story.

The vote largely followed political lines, with right-leaning councillors voting for the amendment and left-leaning councillors voting against it - apart from committee chairman Richard Northey, a Labour Party councillor, who voted for the amendment.

Maori Statutory Board members Patience Te Ao and Glenn Wilcox, voted against the amendment.

Auckland Mayor Len Brown was away on other council business.

Meanwhile, a glimmer of hope at pay talks yesterday persuaded unionists to delay their next strike by 24 hours. They have agreed to hold off until tonight to allow the mediated talks to continue this morning.

HOW THEY VOTED

For the ports board:
Arthur Anae, Cameron Brewer, Christine Fletcher, Des Morrison, Richard Northey, Dick Quax, Calum Penrose, Noelene Raffills, Sharon Stewart, Sir John Walker, Penny Webster, George Wood.

Against:
Cathy Casey, Sandra Coney, Alf Filipaina, Ann Hartley, Mike Lee, Penny Hulse, Patience Te Ao*, Wayne Walker, Glenn Wilcox*

*Maori Statutory Board member