Thursday, 19 November 2015

Finance Committee resolves to focus more on ‘low-hanging’ assets, says Brewer

Auckland Councillor for Orakei, Cameron Brewer, says he’s thrilled the Finance and Performance Committee adopted his amendments today to ensure greater focus and future work on certain aspects of the EY and Cameron Partners reports reviewing Auckland Council’s alternative sources of financing.

“Basically we resolved today to have a really good look at opportunities that exist around Ports of Auckland, Auckland International Airport, council’s commercial and legacy civic buildings, council car parks, as well as ongoing operational savings and organisational efficiencies.

“For me, narrowing down and focusing more on council’s commercial assets and sharpening its own internal group operations are the low hanging fruit which would also have greater public and political support.

“What my amendments, seconded by Dick Quax and adopted by the chair, do is effectively take focus off the AECT which is predictably well beyond our mandate and reach, ensure less focus on privatising Watercare, council housing for older people, and important community assets such as regional parks and golf courses.

“Nonetheless everything covered in both reports effectively remains on the table for the councillors’ workshops in February next year. But this direction is a great start in giving the reports some sense and some tentative response,” he says.

Mr Brewer’s amendments were passed by 13/7 votes today in Item 15 - ‘Alternative Sources of Financing’. How they read and vote record below:

d) request the Chief Executive to direct staff to further explore the effect of all options for Council’s share in Auckland International Airport Ltd, as outlined by the Cameron Partners (p66.) and Ernst & Young (p36.) reports.

e) agree that, upon receiving the Future Port Study, to further explore all options relating to the Ports of Auckland, as set out in the Cameron Partners (p72.) and Ernst & Young (p45.) reports.

f) request the Chief Executive to direct staff to further explore potential partnerships between Auckland Council and the private sector to develop and intensify its car parks as laid out in option 3d of the Ernst & Young report (p80.), given the significant increase in market value that would occur, noting the Cameron Partners’ prediction that divesting these assets entirely offers little positive benefit (p82.)

g) request the Chief Executive to direct staff to undertake further work to identify and minimise duplicated common back-office functions and operational costs, including HR, communications, and ICT across Auckland Council Group by ten per cent to save $15.2m annually as estimated in the Ernst & Young report in option 3a (p65.)

h) request the Chief Executive to direct staff to undertake further work to review Auckland Council Group’s commercial buildings, noting that aligning CCOs with Council parent’s accommodation strategy and reducing our footprint cost is likely to achieve a 20 per cent saving within five to ten years, or as much as $9m per annum in total occupancy costs, as estimated in option 3c of the Ernst & Young report (p75.)

A division was called for, voting on which was as follows:
For

Cr AJ Anae

Cr C Brewer

Mayor LCM Brown

Cr W Cashmore

Deputy Chairperson R Clow

Cr LA Cooper

Cr DA Krum

Cr CM Penrose

Cr D Quax

Cr SL Stewart

Cr JG Walker

Chairperson MP Webster

Cr GS Wood Against

Cr C Casey

Cr C Darby

Cr AM Filipaina

Deputy Mayor PA Hulse

Cr ME Lee

Cr WD Walker

Cr J Watson Abstained
The motion was declared CARRIED by 13 votes to 7.
Ends

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