John Robertson: Critics of marina sale ignore facts

COMMENT

Critics of Ports of Auckland's plan to sell the Westhaven Marina are ignoring some fundamental facts.

Certain politicians and the odd media commentator would have Infrastructure Auckland, as the majority shareholder of Ports of Auckland, or the Government, halt the sale of an asset held by a stock-exchange-listed company. The critics imply that public benefits will be lost if the marina is sold, but do not explain how. They also suggest that Westhaven is already "publicly owned".

Infrastructure Auckland supports the sale of the marina. It believes it is in the best interests of Ports of Auckland and the Auckland region.

First, critics are poorly informed over public access. Regardless of Westhaven's present or future ownership, access to the waterfront is protected through a number of planning controls.

All land up for sale is zoned public open space under the Auckland district plan. Responsibility for that plan rests with the Auckland City Council. There is also a conservation covenant around the perimeter of the marina that fully protects pedestrian access to the waterfront. Changes to the covenant require the permission of the Minister of Conservation.

These protections ensure that, regardless of who eventually buys Westhaven, any member of the public can enjoy it as a place to have a meal, fish, walk, cycle or just breathe the sea air.

Recently, Ports of Auckland has worked with the city council to secure additional protection. This includes perpetual public access to Westhaven Drive, the public boat ramp, the adjacent trailer-park area, the grassed beach area at St Marys Bay, and an extension to the public pedestrian access around the water's edge beyond the yacht clubs to the end of the northern reclamation.

The city council has said it is satisfied access is protected no matter who owns the marina.

Second, the claim that Ports of Auckland does not own the Westhaven Marina - that the wider public has these property rights - is incorrect. The marina itself is not a public facility. It is owned privately for the use and enjoyment of about 700 private berth leaseholders.

However, the public has unfettered access to the marina surrounds. A recent opinion secured by the city council from Sir Geoffrey Palmer has provided confirmation, were any needed, that Ports of Auckland is the marina's rightful owner.

Finally, critics have raised matters of governance, implying that Infrastructure Auckland, as the major shareholder, should instruct Ports of Auckland on its operational and asset investment decisions.

Infrastructure Auckland has the effective power to appoint the directors of Ports of Auckland. Once appointed, those directors have their own fiduciary responsibilities. As a company listed on the stock exchange and subject to the Companies Act, Ports of Auckland must act in the best interests of the company - and, by inference, all its shareholders, including those 5500 who between them own 20 per cent of Ports of Auckland.

It is also required by the Port Companies Act to act as a successful business. Infrastructure Auckland has no other powers of direct control over it.

These controls are appropriate for a company that plays a vital part in the regional and national economies. The trade and economic activity generated by the port sustains some 173,000 jobs, more than a third of the total in the Auckland region. The total effect of trade through Ports of Auckland on the national economy is $13.2 billion a year in value added - 13 per cent of total national economic activity.

Decisions on the retention or sale of non-strategic assets like the Westhaven Marina are for the Ports of Auckland board to make. That is not to say that Infrastructure Auckland is a passive investor. The Infrastructure Auckland board maintains a keen and active interest in the overall performance and strategic direction of the ports company. We elect directors to the Ports of Auckland board who hold a good skill mix to add value to the company.

The critics seem to overlook one other point. All shareholders in the Ports of Auckland seek value from their investment. In Infrastructure Auckland's case, value extracted by way of dividends enables key public projects, including passenger transport and stormwater quality improvement, to be paid for from investment returns rather than imposing a further burden on ratepayers.

The sale of the Westhaven Marina will not compromise public access to the marina surrounds. Unless Auckland City successfully tenders for Westhaven, other private-sector investors are likely to replace the funds invested by the Ports of Auckland in what is substantially an investment in privately secured berths generating cashflows from berth leaseholders.

The proceeds from a sale of Westhaven are likely to lead to a special dividend to Ports of Auckland shareholders. The receipt of such a dividend by Infrastructure Auckland will allow the region to make further investments in public projects to relieve traffic congestion and clean up our harbours.

In contrast to the views of the critics, the board of Infrastructure Auckland looks forward to a successfully completed sale process.

* John Robertson chairs Infrastructure Auckland, the publicly owned regional funding body.