Record Performance Means Arc Group Going Out on a High Note Says Chairman

The ARC Group, due to disappear into the Super City, has had an extremely successful final year. Record public transport numbers and port profits have come on top of political successes for the Auckland Regional Council (ARC) including a string of important victories in the Environment Court.

ARC Chairman Mike Lee has hailed the success of the ARC Group saying it underlines the importance of Port company-derived funding in stimulating the recent public transport revival.

ARC subsidiary, the Auckland Regional Transport Authority (ARTA), reported that the elusive 60 million public transport trips per year barrier has been passed following a record 60.8 million trips from August 2009 to July 2010. Rail has seen an increase of 1155 per cent and the Northern Express bus service has one of the most dramatic increases in usage, with patronage hitting 1.8 million, an increase of 20.1 per cent on last year. Patronage for July 2010 alone was 162,493.

Meanwhile the Ports of Auckland, 100 per cent owned by ARC subsidiary Auckland Regional Holdings (ARH), has recorded one of its best years with an after-tax profit of $24.4 million in the financial year 30 June 2010. This is a 55 per cent increase on the previous year. Its net after-tax profit rose year-on-year from $5.4 million to $37.2 million.

Mr Lee says that the sharp increase in Ports of Auckland’s profit gives lie to the Business Round Table’s recent ‘think tank’ report that argued that Ports of Auckland needed to be privatised to be efficient.

“The profits from the Ports of Auckland have been re-invested in badly needed infrastructure for this region - especially public transport which benefits us all. Going by the latest surge in passenger numbers that investment is really starting to pay off,” says Mr Lee.

“A classic example is that ARTA’s upgraded passenger train fleet was purchased from funding from ARH – and most of this money came from Port profits. It would be inconceivable to even contemplate the massive upgrade of our public transport infrastructure that has been achieved in recent years without the profits from the Port.

“Ports of Auckland has paid nearly a billion dollars in dividends to the region. Dividends which would have gone to a private, probably offshore owner, had we not stopped the sale back in 1992. The region has used this income stream first of all to repay debt, and then in more recent years to invest in critical stormwater and especially transport infrastructure. It also enabled the region to gain complete control of the valuable Wynyard Point (‘Tank Farm’) land to enable ARH’s ambitious urban renewal project now underway.

“The Port and its profits have long been a goal for the privatisers, – as the recent Business Round Table report reminds us.

“Aucklanders should be very wary of people who talk down the value of our publicly-owned Ports of Auckland and who are deliberately dismissive of the enormous amount of money which has been paid out in dividends for the people of the region.

“Ports of Auckland is the biggest container port in the country situated at the front door of New Zealand. An international container port in our CBD gives us an enormous competitive edge.”

Mr Lee praised the leadership of Judith Bassett chair of ARH and Rabin Rabindran chair of ARTA in contributing to the success of the ARC Group.

“It’s a great pity that such a well performing organisation as the ARC Group is very soon to be dismantled and subsumed into the new Auckland Council and its unelected government appointed CCOs,” says Mr Lee.

“Sadly the ARC will soon be marching off the stage of history after 47 years of public service to the people of the Auckland region - but we will be marching off proudly and with all flags flying.”

ENDS

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