Brian Rudman: ACC needs to be told to stop being a tease

At the beginning of April, I was celebrating the decision of Auckland Regional Holdings to return Ports of Auckland to full public ownership by buying the 20 per cent of shares it doesn't own.

But nearly three months on and with the balloons and champagne long gone flat, the takeover is yet to be consummated, with ARH still a tantalising 3.4 per cent (as of Wednesday night) shy of the 90 per cent of shares needed before it can compulsorily acquire the last 10 per cent.

The experts tell me the hold-outs are playing chicken with ARH, hoping their reluctance to sell will force up the $8-a-share offer.

To my surprise, the biggest hold-out is the Government-owned Accident Compensation Corporation, which held, as of June 17, 1.26 million or 1.189 per cent of the total shareholding. I say as of June 17 because by now it may have acquired even more. For it appears the ACC went out buying more shares when ARH announced it was after them.

All of which is what a good capitalist would do in the hope of making some quick cash.

But now the ACC has had its speculative fun, I can't help feeling it's about time someone like ACC Minister Ruth Dyson realised it was not a good look, gave her underlings a nudge and told them to stop teasing the citizens of Auckland. The offer is fair, sell up.

Apparently the ACC holding is something of a logjam. Being the single biggest shareholder after ARH, the theory is that if it were to sell, then enough of the rats and mice still hanging out for more would realise the show was all but over and sell up, quickly bringing sales up to the magic 90 per cent and ending the drawn-out drama.

While on the matter of the ARH, Judith Tizard, the Associate Minister of Arts, rushed out a press release after my column on Wednesday about the parlous state of Auckland Philharmonia's finances.

Her message was to congratulate Auckland City for its sterling support and to "urge the rest of Auckland's councils and the Auckland Regional Council to increase their financial support". Auckland, she said, would be a much poorer place without the Auckland Philharmonia and "must engage with this issue".

She ducked the matter of more equitable Government funding, vis-a-vis the New Zealand Symphony Orchestra. The only carrot she hinted at was to talk of a recent increase in Creative New Zealand's funding. But that, she said, "will only be available once CNZ has established demand across New Zealand".

As for her "urging" of local politicians to do better, I don't know what she expects that to do. Similar past urgings have never had any effect.

The mayors' latest package for the Philharmonia seems to involve legislation for a compulsory regionwide levy of ratepayers, similar to that passed a couple of years ago to put the Museum of Transport and Technology on a firm financial footing. But there is another possibility, and that involves the region's asset bank, ARH.

In her statement, Ms Tizard emphasised that "local government has a vital role to play in providing for community cultural wellbeing and institutions ... because cultural wellbeing is now a purpose in the Local Government Act".

This sentiment is echoed in ARH's establishment legislation. This requires it to prudently manage the region's assets in the long-term interests of the region, "having regard for principles of sustainable development and with consideration for a broad range of social, economic and environmental issues".

This was underlined by a requirement of the legislation that a minimum of 85 per cent of funds realised from ARH's investments go on roading and drainage infrastructure. This was a reluctant acknowledgement by the legislators that 15 per cent could be spent on the finer things of life.

Over the next decade, ARH expects to hand over $1 billion of spending money to the ARC. From the above, it's clear that some of that should be spent on matters social and cultural.

The ARH act suggests 15 per cent, which is $15 million a year for the next 10 years.

Imagine the cultural renaissance such an annual injection would bring to the Auckland arts scene. Our major performing arts organisations - Pasifika, Auckland Festival, Auckland Philharmonia, Auckland Theatre Company, Black Grace - could for once feel financially secure.