Red discharge in Auckland's harbour has resulted in James Packer's super yacht, Arctic P, being issued an abatement notice following a breach of the Resource Management Act

Auckland Council was alerted to a red discharge in the water at Wynyard Quarter yesterday afternoon.

Council investigators attended immediately and instigated an investigation, Auckland Council team leader compliance investigations Kerri Fergusson said.

The discharge was a result of scrubbing and scrapping work being done on the hull of the vessel.

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The boat is rumoured to be worth more than $116 million.

The scrubbing had stopped before council arrival, and as a result they did not see any red discharge around the vessel or in the water.

"The council has today issued an abatement notice to cease all works and apply for a resource consent for any further scrubbing.

"Investigators also advised the captain of the vessel and the supervisor of the company carrying out the works of the requirements and the standards they need to maintain," Fergusson said.

It follows Packer resigning as a director of his company Crown Resorts for "personal reasons".

The company announced the move in a brief statement to the Australian Securities Exchange on Wednesday.

It follows Packer resigning as a director of his company Crown Resorts for
It follows Packer resigning as a director of his company Crown Resorts for "personal reasons". Photo / Supplied

"We have appreciated James' contribution to the board and respect his decision to step down from his role as a director at this time," executive chairman John Alexander said.

In a statement, a spokesman for Packer's private investment company Consolidated Press Holdings said, "Mr Packer is suffering from mental health issues. At this time he intends to step back from all commitments."

It comes amid a tumultuous time for the casino mogul, who has been tied to a corruption scandal engulfing the Israeli Prime Minister.

Benjamin Netanyahu has been investigated for receiving lavish gifts from businessmen including Packer.

Israeli police last month recommended Netanyahu be indicted in two cases of alleged corruption.