Commission's report would make Hide proud

The Productivity Commission’s draft report on international freight transport is a gift from former cabinet minister Rodney Hide who established the commission, and would have made him proud, says Labour’s Transport spokesperson Phil Twyford.

“The commission has recommended partial privatisation of our ports, without providing evidence to show this would boost productivity or profitability,” Phil Twyford said.

“There is no argument that New Zealand needs to run efficient and productive ports that provide a good return for our country.

“But this report doesn’t show that a mixed ownership model would provide tangible benefits.” Phil Twyford said.

“In fact, it is interesting that the report shows that the return on average operating capital for the Ports of Auckland in 2011 was 6 per cent, while the return at the part-private owned Ports of Tauranga was just 0.3 per cent higher.

“The report notes the productivity of our ports has improved significantly over the last couple of decades, and that on-shore costs compare favourably to Australian ports.

“It is disappointing the report should be so ideological. It pays scant regard to broader issues of port reform and lack of competition amongst the international shipping agencies. It simply asserts the problems lie in public ownership, governance arrangements and employment relations.

“Sadly the commission does not seem to have considered that partial privatisation could give overseas shareholders a huge say over the way our ports are run.

“It is vital New Zealand retains control of such strategic infrastructure. Our ports are already dependent on powerful international shipping companies, and we cannot afford to reduce our stake in the governance of enterprises like the Auckland waterfront,” Phil Twyford said.