Waterfront veteran poses $2m question

By DANIEL RIORDAN transport writer

Harry Palmer is tilting again at Ports of Auckland, proposing that $2 million of the company's planned $132 million capital distribution to shareholders be paid to waged employees as a bonus.

For 28 years a watersider with the company, Palmer has for the past seven stood unsuccessfully for election to the company's board.

"They know I'm keeping an eye on them," the Mt Roskill resident said yesterday.

Shareholders vote on the capital distribution next Wednesday.

Under the directors' proposal, one in every five shares will be cancelled, shareholders will receive a tax-free capital repayment of $120 million and $12 million as a special dividend with full imputation credits.

Under Palmer's proposal, shareholders will receive $120 million tax-free and $10 million as a fully imputed special dividend.

The company's 540 employees will receive $2 million, which would be treated as an expense in the current financial year and be tax deductible.

Either proposal will require 75 per cent of the votes of all shareholders entitled to vote and voting at the special meeting.

Infrastructure Auckland owns 80 per cent of the company's shares and Palmer is under no illusions which way it will be voting.

In his letter to shareholders attached with the notice of meeting, Palmer said employees for the past 12 years "have done an excellent job in recording a substantial profit".

A bonus would be "in appreciation for their supreme effort".

Last year Ports of Auckland made a net profit of $44 million. Said Palmer: "Last year we got a little ticket to have lunch at the cafeteria and then they rostered us off."