MPs worried by port review

Photo / Kenny Rodger

A review of the capital structure of Ports of Auckland is proving controversial even before options are recommended to its public owners.

One possible recommendation could advance private ownership in the port company.

This was yesterday seized on by the Greens, who linked any such move to local government reforms that could eliminate the port's ultimate owner, the Auckland Regional Council.

A report in the Herald yesterday incorrectly attributed to the Ports of Auckland chairman, Gary Judd, discussion of a possible sale and had him suggesting the time was right to consider privatisation.

He had instead acknowledged a reporter's suggestion that a public sharemarket listing could form part of the review team's recommendations.

"I suppose we could make a recommendation to that effect, but it is not our decision to make," Mr Judd said.

He did not call for a sale and did not float the idea as stated in headlines yesterday. The errors are regretted.

Mr Judd said the port company board believed the time was right to consider the "best thing to do" in unprecedented economic times.

The review would look at how the port might be affected by the changing financial environment, and the board would then look at how to structure the company's balance sheet.

The company is owned by Auckland Regional Holdings, the investment arm of the regional council.

The ownership of Ports of Auckland could become a matter for an Auckland-wide super city if, as expected, the Royal Commission on Auckland Governance recommends giving regional assets to a super city.

The port company's capital review will run in parallel with the royal commission recommendations for any change of ownership for the port.

Green Party local government spokeswoman Sue Kedgley claimed moves to disestablish the ARC would open the way for privatisation of assets such as the port or the water supply.

Labour Party local government spokesman Shane Jones said neither Mr Judd nor the Auckland Regional Holdings chairwoman, Judith Bassett, seemed to be advocating privatisation, but he was worried about Local Government Minister Rodney Hide.

"As [Mr Hide is] the minister responsible for the Auckland governance reforms, it is a case of the fox being in charge of the hen coop."