Category: Maritime Union of New Zealand

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Aucklanders show strong opposition to port sale in new poll

Source: Maritime Union of New Zealand

The Maritime Union has released a new poll that shows an overwhelming majority of Aucklanders support keeping the Port of Auckland in public ownership.

Polling was carried out by Talbot Mills from 4–9 October 2023 on a sample of 517 Aucklanders.

In answer to the question “Do you think Aucklanders should continue to own and profit from the Auckland Port?”, 63% of respondents answered yes, 7% answered no and 30% were unsure.

In answer to the question “Mayor Wayne Brown has suggested selling the Auckland Port to overseas investors. Do you support or oppose the sale of the Port?”, 64% were opposed to the sale, 15% were in support and 21% were unsure.

Maritime Union Auckland Branch Local 13 Secretary Russell Mayn says the poll confirms Aucklanders are opposed to privatisation of the Ports of Auckland by an overwhelming majority.

The polling follows the September 2023 release of a report commissioned by the Maritime Union that detailed how port privatisation in Australia had led to major increases in port charges as private owners sought to recoup their investment.

Mr Mayn says there has been no convincing argument for port privatisation and there is no mandate for a sell off.

“This is an asset that is immensely important to Auckland’s economy and to New Zealand’s supply chain. The Mayor of Auckland needs to share the details of his privatisation plan and party leaders need to tell voters where they stand on this risky and reckless privatisation proposal.”

He says the Mayor of Auckland has a difficult job in dealing with the financial pressures on Auckland City, but the clear message is Port privatisation is not the answer.

“As the Mayor has acknowledged, the Port of Auckland is currently making good returns for Aucklanders.”

Mr Mayn says the Maritime Union is calling on Auckland Councillors who have not yet stated their position on port privatisation to confirm their views in the interests of transparency.

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Substantial progress for transport under the Labour-led Government

Source: Maritime Union of New Zealand

The Maritime Union says substantial progress in the ports and shipping sector in the last term needs to be continued under a Labour-led Government.

Maritime Union of New Zealand National Secretary Craig Harrison says three key successes of the current Government have been in building coastal shipping capability, improving health and safety through the Ports Health and Safety Leadership Group, and laying the foundations for improved conditions in the industry through Fair Pay Agreements.

He says the interests of the transport industry are wider than shareholder profit, and the needs of workers and the environment need to be prioritized.

Mr Harrison says the $30 million coastal shipping fund has seen new New Zealand flagged vessels come onto the coast after years of decline.

He says following the pandemic disruption, the transport industry now acknowledges the need for a vibrant coastal shipping sector.

“Coastal shipping is a low emission mode and provides resilience in the face of the extreme weather events that are already disrupting land transport links.”

He says the development of the Port Health and Safety Leadership Group led by Maritime New Zealand and implemented by the Government has been a game changer.

“The maritime industry has had a terrible rate of deaths and injuries in recent years, and this is now changing as the industry works together under the new system.”

Mr Harrison says Fair Pay Agreements (FPAs) are a great step forward for undervalued workers.

“Even employers now acknowledge the low wage casualization model has been a failure and we have to provide decent wages and conditions for all workers.”

He says workers make up the majority of voters and need to focus on real issues and the facts of what was in the interests of working-class people.

“Past promises of tax cuts have always benefited the wealthy section of the population – they do not benefit the majority of workers who need better wages and conditions and public services.”

Mr Harrison says Labour and the Greens have demonstrated a clear commitment in Government to the interests of workers and a sustainable and resilient transport industry.

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‘Show us the numbers’ on port privatisation

Source: Maritime Union of New Zealand

The Maritime Union says the Mayor of Auckland should “show us the numbers” about Auckland’s finances before pushing port privatisation as the easy answer to its problems.

The Maritime Union was responding to claims by the Mayor reported in the media last week about the need for service cuts and asset sales as a solution to rising rates. 

Maritime Union Auckland Branch Local 13 Secretary Russell Mayn says Auckland ratepayers are aware of pressures on City finances, but want to see some hard evidence as to how privatisation is a solution.

“At the moment it seems largely to be doom and gloom tactics to try and generate a panic and justify an existing agenda.”

He says that selling profitable strategic assets comes with substantial costs of its own.

Mr Mayn says a report commissioned by the Union showed how port privatisation in Australia had led to major increases in port charges as private owners sought to recoup their investment.

These charges would be passed onto businesses and consumers, he says.

Mr Mayn says the Port of Auckland is making good returns and has a very positive future with its current ownership model.

“Privatisation of assets would lead to Aucklanders losing the family silver, and then facing increased costs through profit gouging at a private port.”

Mr Mayn says it makes no sense to be talking about major waterfront beautification projects on port land while at the same time claiming that the City was broke.

“The Maritime Union understands the pressures on Auckland’s finances, but selling off the prime assets of the City for a one-off sugar hit does not address the long term issues and would lead to all sorts of consequences.”

He says one immediate cost saving would be cancelling overseas consultants being paid hefty fees to build the privatisation case.

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National strategy required for future of New Zealand ports and shipping

Source: Maritime Union of New Zealand

The Maritime Union says there needs to be national level planning around ports and coastal shipping, otherwise New Zealand is going to find itself in a bad position.

Maritime Union of New Zealand National Secretary Craig Harrison says there needs to be a stronger response to building resilience into the supply chain.

The Productivity Commission has noted disruptions to global supply chain trends are likely to become more frequent with causes including pandemics, war and climate change.

Mr Harrison says the Union is calling for political solutions including a port strategy and investment in coastal shipping.

He says one problem is how New Zealand ports are primarily seen as income streams for owners, as opposed to national infrastructure that underpins the successful functioning of the economy.

An example of lack of co-ordination is the multiple conflicts around the future of the Port of Auckland, he says.

“In the case of Port of Auckland, we have major roading and rail projects being proposed at the same time as a privatization agenda and plans to shrink the port despite no clear alternative capacity – in other words, total confusion.”

He says claims there can be a straightforward relocation of port activities to Northport (Whangarei) or Tauranga are unrealistic.

“Northport does not even have a rail link at this stage, and Tauranga is operating close to capacity. This situation is not going to be resolved by highway mega-projects that simply move congestion around.”

He says with ongoing climate-driven weather events becoming more severe, proposals to sink more and more resources into roading projects shows a refusal to face facts. 

Mr Harrison says there needs to be a strategic shift to build the role of coastal shipping.

He says New Zealand coastal shipping provided resilience that was demonstrated during COVID and during natural disasters such as earthquakes or flooding, when regional land links were out of action.

“For a fraction of the enormous price tag of monster motorways, New Zealand could become a leader with investment into low emission coastal shipping, and create safer, less congested roads.”

“The recent Government investment and resulting growth in coastal shipping shows the potential but there needs to be an integrated shipping and ports policy to build on this.”

He says that the Maritime Union is campaigning for changes to the Maritime Transport Act to promote New Zealand shipping and maritime jobs.

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Maritime Union backs calls for corporate manslaughter law

Source: Maritime Union of New Zealand

The Maritime Union is backing the call from Pike River family members Anna Osborne and Sonya Rockhouse for the introduction of criminal corporate manslaughter laws.

Maritime Union of New Zealand National Secretary Craig Harrison says the Maritime Union has supported corporate manslaughter laws in principle for a number of years.

Mr Harrison says it is unacceptable workers are dying and being injured on the job due to failure to provide safe working conditions.

“The terrible tragedy of Pike River is an indictment on how the interests of senior managers, directors and shareholders were put before the lives of workers.”

He says investigations of any corporate manslaughter cases must rest with the New Zealand Police and prosecution with Crown Prosecutors.

Mr Harrison says there have been eighteen deaths in New Zealand ports over the last ten years, as well as a substantial number of sometimes serious injuries.

He says progress has been made in health and safety in the Ports sector, including the development of an industry backed Approved Code of Practice for port operations, with the involvement of the Union.

“It is now necessary to ensure that strong laws are in place to provide an incentive for employers to ensure safe workplaces, and to send a strong message to those employers who choose to put workers in danger.”

The call for new laws comes as charges against three individuals by Worksafe resulting from the Whakaari/White Island disaster were dismissed in the Auckland District Court earlier this month. 

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New report shows major downsides to Ports of Auckland privatisation scheme

Source: Maritime Union of New Zealand

A new report commissioned by the Maritime Union of New Zealand shows major downsides to any privatisation of operations at the Ports of Auckland.

The report entitled “The costs and risks of privatising Ports of Auckland operations” draws on international research including the experience of Australian ports in recent years.

Auckland Council is reviewing options to sell an operating lease for the Ports to a global network terminal operator, and has commissioned consultants to seek expressions of interest.

Maritime Union of New Zealand National Secretary Craig Harrison says a key concern coming out of the report is the potential for price hikes hitting port users – then being passed on to local industry and consumers.

Mr Harrison says privatisation of operations at Ports of Auckland is estimated to hit local port users with NZ$70 million in extra costs annually.

“Any private operator in Auckland would be in a monopoly position and would seek returns on its investment, on top of the lease cost – the profit has to come from somewhere.”

He says privatised port operations in Australia have seen surcharges of over AU$100 per container imposed on port users, who have no other options.

“The failed automation experiment at Ports of Auckland shows there is no fat to be cut at the Port, and private profit through privatization would be extracted from port users and the local economy.”

Mr Harrison says the primary value of the Ports of Auckland is how it facilitates trade.

He says there is growing concern there is no clear strategy for the Ports and decision making is being driven on a short term, ad hoc basis.

“The Ports of Auckland is going through the a period of growth and stability under new leadership with improving returns, and should be left to get on with the job and not meddled with.”

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Confusion and uncertainty casting a cloud on future of Ports of Auckland

Source: Maritime Union of New Zealand

The Maritime Union has warned how uncertainty around new proposals for Ports of Auckland is a threat to the stability of the Auckland and the wider economy.

Maritime Union of New Zealand National Secretary Craig Harrison says there is growing concern about the direction of the port debate.

The Auckland Council is considering options behind closed doors to relocate the Ports to make way for ‘water features.’

It is also reviewing options to sell an operating lease for the Ports to a global network terminal operator, and has commissioned consultants to seek expressions of interest.

Mr Harrison says there seemed to be no clear idea as to what the end goal was, the costs involved, and how the plan would work in practice.

He says it is unclear how simultaneously privatizing and relocating the Port is going to work let alone the proposed waterfront redevelopment.

“This latest proposal for pools and barbies on the waterfront is simply not serious.”

He says it makes no sense for the Council to commit to massive expenditure on waterfront redevelopment when claiming Auckland was in financial crisis and cutting the budget for parks and libraries for the rest of Auckland.

“It is unclear what is the primary motive – is it to come up with short term band aid for Auckland’s financial issues, is it to hand over commercial real estate to developers, or is it to provide salt water pools for well off central city dwellers?”

Mr Harrison says the primary purpose of the Ports of Auckland was to facilitate trade and the Port was doing a good job at this.

He says on the hoof decision making with no clear strategy for future operations was a dangerous way to approach the future of New Zealand’s major import port.

“Remember that any of these schemes will add to congestion and rising costs for business and consumers if they disrupt port operations.”

The Ports is going through the a period of growth and stability under new leadership and it was a priority not to undermine this positive progress, says Mr Harrison.

“The cost of the failed automation project of the previous management was estimated at a $1.2 billion hit to the economy, and another failed experiment could cause even greater harm.”

Mr Harrison says any attempt to move or relocate port operations would be an extremely complex, expensive and long term project that needed to be part of a wider ports strategy.

He says the Northport option is currently a fantasy given the lack of infrastructure, no existing rail link, no coastal shipping plan, and already congested road links that were vulnerable to extreme weather events.

“Yet we are talking about effectively adding thousands more truck moves on some of the busiest roads in the country if we go down this track.”

Mr Harrison says New Zealand needs a national ports strategy that integrates coastal shipping and rail, with a focus on supply chain resilience in a volatile global environment.

He says the Ports of Auckland should remain in public ownership as a strategic asset that was central to Auckland and New Zealand’s economy.