RAM - Residents Action Movement
Election InfoLine 4.10.07

Port chair challenged over 'sweetheart deal'

A controversy has surfaced over the role played by Ports of Auckland managing director Jens Madsen in the port company's service contract with Maersk, the world's biggest shipping line.

Mr Madsen had spent 28 years as a senior executive of Maersk. Then in February 2006 he became second-in-command at Ports of Auckland, effectively preparing to step into the retiring managing director's shoes. Nine months later, Maersk announced that Ports of Auckland would handle more of the shipping line's North Island services.

"Right-wing business columnist Fran O'Sullivan, who is certainly no friend of RAM, reported that several ports industry competitors shared my concerns about Ports of Auckland dropping its charges too far to gain Maersk's business," said Grant Morgan, a RAM candidate for the ARC in Manukau Constituency.    (Fran O'Sullivan's column "Time to rock Ports' boat" in NZ Herald, 3 October 2007.)

"I questioned whether this below-margin deal with Maersk ate into Ports of Auckland's profits, despite labour productivity continuing its steep climb."

"Several days ago I asked what role was played by Mr Madsen in the port company's profit drop this year," said Grant Morgan.

"I asked if Maersk's ex-boss offered his old firm a sweetheart deal which undermined port company profits."

"And I asked if port workers were now expected to pay for his sweetheart deal as Mr Madsen takes a hard line against their union's moderate claims"

"Yesterday my questions were incorrectly labelled as 'statements' by Ports of Auckland chair Gary Judd, who then said they were 'incontrovertibly untrue'. Mr Judd asserted that 'the terms and conditions of the Maersk contract with Ports of Auckland were set well before Mr Madsen joined Ports of Auckland'."

"Despite Mr Judd's assertions, there appear to be serious unanswered questions about goings-on at the port company," said Grant Morgan. These include:

Why is Mr Judd so insistent that Mr Madsen had nothing to do with the below-margin deal with Maersk despite Mr Madsen becoming second-in-command at Ports of Auckland nine months BEFORE Maersk gave extra business to the port company?

Why has Mr Judd refused to comment publicly on whether the port company's reduced charges for Maersk amount to a "sweetheart deal"?

Why has Mr Judd refused to publicly comment on whether any sweetheart deal with Maersk has undermined port company profits and flowed through into a hard line against port workers' pay claims?

"I challenge Mr Judd and Mr Madsen to give some credible responses to these questions," said Grant Morgan.

"And I request them to make public the port company documents which can throw more light on the matter, but which are at present being kept hidden"

"Ports of Auckland is 100% owned by Auckland Regional Holdings which, in turn, is 100% owned by Auckland Regional Council. Yet, despite the port company being wholly owned by the ARC, ARC councillors do not know what the port company's board and management are getting up to."

"If we're going to put the 'public' back into this public company, then ARC councillors must be kept fully briefed on the port company's important operational and strategic decisions. RAM councillors will do everything possible to breach the wall of secrecy," said Grant Morgan.

ADDITIONAL RESOURCE

Media statement by Ports of Auckland chair Gary Judd is republished in full at bottom.

The RAM Team is standing for 27 positions on the Auckland Regional Council, Auckland City Council and Community Boards, and the region's three District Health Boards.

STATEMENT BY PORT CHAIR GARY JUDD

From: Megan Hopkins-Stone[SMTP:HOPKINS-STONEM@POAL.CO.NZ]
Sent: Thursday, October 04, 2007 4:52:55 PM
To: Robyn Hughes
Subject: Ports of Auckland media statement 3 Oct, for your information

Greetings,

You may have seen some recent media coverage regarding Ports of Auckland¹s new Managing Director Jens Madsen and the recent Maersk contract.

For your information and reference, please find below a brief media statement released by Ports of Auckland yesterday (Wednesday 3 October).

Kind regards, Megan

Megan Hopkins-Stone  |  Communications Advisor  |  Ports of Auckland Ltd

Ports of Auckland Building, Sunderland Street, Mechanics Bay, Auckland 1010

PO Box 897,  Shortland St,  Auckland 1140, New Zealand  

Ports of Auckland refutes media statements

Ports of Auckland refutes the recent statements (by ARC RAM candidates) being reported in media referring to Jens Madsen, Managing Director of Ports of Auckland, and the Company¹s contract with Maersk.

³These statements are incontrovertibly untrue. The terms and conditions of the Maersk contract with Ports of Auckland were set well before Mr Madsen joined Ports of Auckland,² said Ports of Auckland Chairman Gary Judd QC.

END

© Scoop Media