Fletcher's man ready to rebuild Christchurch

Mark Binns, chief executive infrastructure of Fletcher Building. Photo / Paul Estcourt

Meet the man charged with rebuilding Christchurch, but don't tell him that.

"No, no, no. Very sensitive on that. I wince when there's this 'Fletchers are doing everything'. It's just not right. I mean, look: we are just one of a number of construction companies that are obviously going to contribute to the rebuilding of Christchurch and probably because of the role with the EQC, it's the highest visibility. We get quite a few headlines."

Mark Binns created his own headlines this month when he put the cost of rebuilding at $20 billion, and after the September quake Fletcher Building was appointed the EQC's agent to deliver the rebuilding programme for houses which suffered damage worth $10,000 to $100,000.

"We've gone from zero to 200 people on the ground in the earthquake recovery office. But that's only part of the work. Then there's all the work for the insurance companies. It's yet to play out how much work will be done in Christchurch," he says, citing the new government agency in charge of reconstruction but also citing rival building, infrastructure and construction businesses Hawkins, Arrow, Mainzeal, McConnell Dowell and others.

"A number of decisions which need to be made around planning. What is it going to be? How many storeys? What's it going to look like? All those urban planning and consenting issues need to be resolved."

As Fletcher infrastructure chief executive, Binns put proposals to the Department of Building and Housing to build three worker camps for 900 people on leasehold land outside the city, one site at Amberley. A further 250-300 emergency houses for victims are part of that plan.

A ready workforce with the right skills and equipment, he emphasises, is the key to success.

"The challenge is, you have to rebalance the future work in New Zealand because Christchurch is going to become that much more significant in terms of a construction market for the next decade than it was going to be. Say it is $20 billion for a total rebuild and done for 10 years, that's $2 billion of work in a year so that creates a challenge.

"We're looking at the moment how we beef up our presence even further in Christchurch both in the engineering and building areas with equipment and people. Over the whole project you'll need a total range of equipment but first up equipment for work in the ground, diggers, piling gear, mobile cranes. We have a large stock in our plant yards and we're moving gear to the South Island and if necessary we'll buy from Italy, Germany, Japan."

Enough skilled labour is another key.

"You don't want blockages - waking up and finding 'oopsey, I need 500 block-layers'."

New Zealand must first draw on its own workforce but that might be insufficient so Binns says specialists from the Philippines, Middle East, Ireland and Poland could be targets but only if shortages are found here.

Binns is a commercial lawyer who moved to Fletcher 22 years ago and is the only continuous divisional chief executive since the company listed on NZX in 2001.

Terry McFadden, a former Fletcher Forests chief executive and an external monetary policy adviser to the Reserve Bank, was the key to moving Binns out of the law and into property in 1989.

Binns was a partner at Simpson Grierson by the age of 28, but McFadden, the Simpson Grierson partner who originally employed him at the law firm, drew him to Challenge Properties where he was general manager.

Initially Binns headed the team working on expanding St Lukes and Shore City mall where he worked with Alison Smith, John Bougen, Paul Duffy and David Kennedy.

McFadden now lives in Melbourne but has stayed close friends with Mark Binns and his wife, Louise.

Binns then became general manger of Fletcher Construction NZ/South Pacific. He counts SkyTower and the casino, Te Papa and the second Manapouri tailrace tunnel as some of his largest jobs in that role.

But Manapouri was one of Binns' less fortunate jobs, hard rock sparking cost overruns and leaving him in a consortium digging what was dubbed "the world's toughest tunnel".

Many of Binns' divisions have vocal critics. Golden Bay cement should never have been allowed to blot Auckland's CBD waterfront with its massive new storage depot, they say.

Filling in Winstone's Three Kings quarry is a lightning rod for dissent, with the Environment Court hearing the controversial case this month.

Opponents say Fletcher is too powerful, too close to the Government. Much of Binns' empire is either a monopoly or duopoly.

One critic refers to "Fletcher Followers", referring to an uncritical media spouting spin without spotting state collusion dating back to Fletcher's state housing dominance and Labour Party links.

Nigel McKenna's $800,000 short payment for Fletcher Construction building Wellington's Rydges Hotel still rankles with Binns and despite two years of a costly legal battle, the Melview developer has escaped bankruptcy, this week being granted until mid-April to reappear in court.

Binns was actually born in Christchurch although he spent just his first three months there, in St Albans, before his family shifted to Auckland. He grew up in St Heliers, the son of Hermione and the late Fred Binns, a New Zealand Wheat Board manager.

Binns heads Fletcher's most profitable division with sales of $1.8 billion for the June 2010 year and operating earnings of $144 million, ahead of laminates and panels' $141 million operating earnings.

Peter Hinton, the Simpson Grierson corporate and commercial partner and Binns' friend for years, compared him to Prime Minister John Key for his empathy and personal skills but rubbished state collusion allegations.

"The only reason the Government talks to Mark Binns is that they need him. That's absolutely true. While others might command or demand loyalty, Mark is a natural leader and there are allegiances to him within Fletcher which are unstinting."

McFadden said Binns' career was tough.

"One of the things which is striking about Mark's career is that none of the roles he has had have been easy. It has been a long baptism of fire which has bred a very capable operator indeed with an unequalled knowledge of the construction and property scene in New Zealand and a set of industry people relationships which are peerless.

"Challenge Properties had many issues as a result of past management and in Fletcher Construction. Mark had to build respect within a tight and occasionally inward-looking culture that didn't necessary like lawyers.

"That he achieved this within a few years speaks mountains for his leadership qualities and ability to gain respect through hard work, a willingness to get his hands dirty, good listening skills and a willingness to stand up and be counted when it matters.

"He is a straight shooter who people quickly respect because what you get is what you see. He is not interested in corporate politics and genuinely cares for his people and the wider organisation. With no disrespect to Jonathan Ling (whom I do not know) I was disappointed that the board did not take the opportunity to appoint a New Zealander to the chief executive role when Ralph Waters retired," McFadden said.

Mark Binns met his wife, Louise, in 1976 at Auckland University's law school. The couple have been married for 31 years and live in an 1880s house in the Auckland suburb of Parnell.

Louise Binns says she needed to find something to do while Mark was at work. The family law barrister, tenancy adjudicator and travel business owner is a board member of the anti-addiction Odyssey House and chairs anti-abuse organisation Shine.

Mark Binns describes her as having "energy levels I can only aspire to".

FACT FILE: MARK JAMES BINNS
Chief executive, infrastructure, Fletcher Building

* Age: 54

* Education: Glendowie College, head boy, First XV captain, Auckland University law degree

* Family: wife Louise; children Matthew, Joshua, Hannah

* Leisure: marathons, skiing, golf, fishing

Rebuilding Christchurch
Mark Binns runs many businesses crucial to the rebuild including:

* Fletcher Construction, NZ's dominant builder, with an $800 million forward order book, shortlisted for the Waterview connection, having completed Eden Park's expansion, almost finished at Mt Eden Prison and now working on the Victoria Park tunnel. The firm specialises in large-scale commercial and roading projects, owning other large businesses like Piletech, Brian Perry Civil and PipeWorks.

* Fletcher Residential with seven separate house brands, the country's biggest house builder, putting up about 300 houses annually.

* Firth, NZ's biggest concrete company with 70 manufacturing plants.

* Humes Pipeline Systems, the country's largest pipeline systems supplier.

* Golden Bay Cement, NZ's largest cement manufacturer and supplier with its big Portland plant near Whangarei.

* Winstone Aggregates, NZ's largest manufacturer and supplier of aggregates and sand for roading, concrete and civil engineering.

Other Fletcher businesses supplying to the recovery are:
* Fletcher Easysteel
* Laminex
* PlaceMakers
* Fletcher Aluminium
* Tasman Sinkware
* Diamond, NZ's largest manufacturer of steel roofing
* Fletcher Reinforcing supplying steel and mesh

* Products needed will include plasterboard, insulation, metal roofing, roof tiles. The company employs about 1000 people in Christchurch, at PlaceMakers, Winstone Wallboards, Humes, Firth and in various divisions and businesses.