Auckland Mayor Wayne Brown says his proposal to lease out operations at Port of Auckland for 35 years has been moved "off the table" under a new plan that would "deliver a much-improved profit level" from the port.
Over the past several months, the mayor has been pushing his plan to create a $3-to-4 billion war chest, dubbed the Auckland Future Fund, with money from the proposed lease of the city's port, and selling some or all of the council's shares in Auckland Airport.
Brown said the proposed long-term lease of the port was now "off the table".
"Under the new plan, Auckland's port land, assets, and operations will be retained under council ownership," he said.
"The Port of Auckland will contribute $1.1 billion in profits to Auckland Council over the next 10 years, which exceeds the projected net returns from investing the proceeds of a port lease by $172 million."
The mayor's agreement has not yet been formally put to councillors for a vote.
He said: "The arrangement will be formalised by way of Ports of Auckland's annual statement of corporate intent and the council's long-term plan — to be considered by the budget committee, and the governing body next week."
The report is currently with the mayor's office and is yet to be made public despite consultation on the city's long-term plan closing in four days. (Source: 1News)
The mayor said: "We've taken time to explore all options for the port and test the market. It's helped us understand what the opportunities are and what our expectations ought to be.
"Had the process been any less rigorous, and the debate any less robust, we may never have reached a consensus."
Brown announced the new plan alongside Port of Auckland's board chairperson and a representative of the Maritime Union — an opponent of the mayor's proposals that had previously described the leasing proposal as "letting the vultures in".
The mayor said public submissions on the port lease plan had been "more neutral" than proposals to sell the council's shares in the city's airport. Aucklanders were asked for feedback on the proposal during long-term budget consultation.
"In the intervening period of time, since we did the consultation, the port has improved its profitability dramatically and the airport has done the opposite," Brown said.
During his mayoral campaign, Brown campaigned on moving the port, and later as mayor unveiled designs for new public spaces to replace the a "wasteland" that currently exists.
A spokesperson for the mayor said today: "Port of Auckland supports the mayor's proposal to return Captain Cook Wharf and Marsden Wharf to Auckland Council, which have no impact on the port company's profitability in the short-term.
"The mayor has also negotiated public access to parts of Bledisloe Wharf, as a shared space for public use and cruise."
It's unclear where the money's coming from and what it means for Auckland's port. (Source: 1News)
Port of Auckland chairperson Jan Dawson said the plan "provides a clear direction and certainty for the port staff, our customers, and the community.
"We are pleased to enter into a tripartite arrangement with our owner and our unions, as together, we will continue to deliver for the people of Auckland."
SHARE ME