Lee lashes out at Ports of Auckland 'incompetency'

Simon Allen. Photo / NZPA

The Auckland Council body that oversees Ports of Auckland came in for stinging criticism yesterday from councillor and former regional council chairman Mike Lee.

Lee accused the board of Auckland Council Investments (ACIL) - led by Financial Markets Authority chairman Simon Allen - of getting away with corporate incompetence, replacing experienced directors on the port company with inexperienced directors and ruining the port along the lines that occurred in the finance sector.

"Be warned, I will be seeking accountability from ACIL," said Lee, who as chairman of the former Auckland Regional Council oversaw the port company and whose remarks caused an uproar at the accountability and performance committee.

Lee refused calls by councillors George Wood, Cameron Brewer and Dick Quax to withdraw and apologise for what they called "offensive remarks" and he called "fair and reasonable".

"I said at the end of this dispute when the truth comes out I will be seeking accountability. I believe the board of ACIL are very much implicated in the failure we have seen at Ports of Auckland, corporate incompetence and the removal of very experienced, competent directors," Lee said.

The remarks were made in front of the full ACIL board - Allen, Miriam Dean, QC, Candis Craven, Brian Corban and Pauline Winter - who all attended the meeting.

Following the meeting, Allen declined to comment on Lee's allegations of corporate incompetence, but expressed confidence in his own board and its handling of the port dispute.

"We are sticking to firm governance principles as we are set up to. We have got duties and rights and we are sticking to them."

Most members of the committee distanced themselves from Lee's remarks.

In response to a question from councillor Cathy Casey, the ACIL team were unable to shed any more light on the surprise resignation on Friday of ports director Rob Campbell, a former high-profile unionist who was a prime mover of plans to contract out wharfies' jobs.

ACIL chief executive Gary Swift said the industrial dispute was likely to cost ratepayers $8 million in lost dividends this year. The port company paid an interim dividend of $9.8 million for the first six months of the year, but ACIL was not budgeting for a dividend in the second half, he said.

Meanwhile, mediated talks resumed yesterday between the port company and the Maritime Union after a pep talk from Auckland Mayor Len Brown, but the two sides went away with wildly different progress reports.

Company chief executive Tony Gibson described the mediation as positive, saying the parties worked together to identify a number of issues of potential compromise.

He said the company was committed to negotiating all outstanding points "with the goal of reaching an agreement which is both acceptable to MUNZ and achieves the modern flexible conditions that the port needs."

But union president Garry Parsloe said his side was "dismayed" that after all the disruption at the port the company had indicated little change in position.

"No worker in their right mind will agree to a collective which retains the right of the employer to contract out after what we have been through and with a clear indication across the table from the port that they continue to want to pursue the idea."

Parsloe said the union had tabled a comprehensive new proposal including major changes to the way overtime was paid and a willingness to discuss a wide range of issues. According to a new position paper issued by the union, that includes possible movement between eight and 12-hour shifts.

Talks are due to continue on Thursday next week, following a phased return to work by 235 union members, starting with engineers due back on the wharves this morning.

- additional reporting: Mathew Dearnaley