NRC poses port deal

Ports of Auckland wants to take a nearly 20 percent stake in the Northland Regional Council's biggest asset - Northland Port Corporation - in a deal worth nearly $24 million.
Regional council chairman Mark Farnsworth, in announcing the proposed deal yesterday, said securing a strategic ally to improve Northland's inadequate infrastructure was among potential benefits from the possible sale.
The regional council holds a 72.3 percent stake in Northland Port Corporation with the remainder in public ownership.
Northland Port Corporation and the Port of Tauranga each have a 50 percent share of Northport Ltd, the operating company for the deepwater port at Marsden Pt.
The council wants the public's backing for the sale and a month-long consultation process is to start today.
The regional council would retain a controlling 52.4 percent shareholding in Northland Port Corporation which would prevent the organisation being swallowed up by the much larger Ports of Auckland.
The council had no plans to sell more of its shares.
Under the proposal, Ports of Auckland will pay the council $2.90 per share for a 19.9 percent stake.
The council said that given the strategic nature of its shareholding in Northland Port Corporation, a price for the shares of between $2.85 to $2.90 was fair.
Mr Farnsworth said the plan had been talked about for about six months but was not a done deal.
The council would be "guided by the views of the public of Northland when making its decision".
Given the port's strategic value to Northland, the regional council did not wish to relinquish majority shareholding in Northland Port Corporation as it did not believe this was an appropriate option, or one that the Northland public would accept.
When asked what would happen if the public rejected the 19.9 percent sale, Mr Farnsworth said the council would "cross that bridge" then.
Whangarei MP Phil Heatley gave the proposition cautious support.
"The offer proves the strategic importance of our port to Auckland.
"We just have to make sure that Auckland's agenda lines up with our best interests," Mr Heatley said.
"That aside, the deal will certainly keep Port of Tauranga honest which can only be a good thing."
Whangarei Mayor Pamela Peters said the proposed sale was clearly a significant decision for Northland.
"For some time, a number of us have been of the view that the port at Marsden Pt would ultimately have links to Auckland. At a strategic level, you would hope this strengthens Northland's position, and rationalises resources to reduce duplication and improve efficiency and effectiveness," Mrs Peters said.
Mr Farnsworth said that when he was re-elected as regional council chair, he gave a public undertaking to address some of the many infrastructure issues the region faces. One of those would be a rail link to Northport, the deepwater port at Marsden Pt.
"I believe Ports of Auckland, as our neighbour, has the potential to become a much-needed ally in this region's efforts to improve infrastructure like roading and rail ... and also offer the regional council improved financial security," Mr Farnsworth said.
Ports of Auckland chief executive Geoff Vazey said over time, he believed that a bigger proportion of produce flow to ports would be by rail.
Despite the council getting a $24 million windfall if the sale goes ahead, the money would not be given directly to ratepayers - whom the council holds the Northland Port Corporation shares on behalf of.
"There will be no big cash payout to ratepayers. We will reinvest it to ensure an ongoing future for shareholders," Mr Farnsworth said.
He said investing the money would give the council up to $900,000 a year more than it budgeted for, money that would be used to offset rates.
The council approached Ports of Auckland about the sale and had not explored selling the shares to any other party.
If the sale is approved by the council, it will likely take effect within the next few months.
Copies of a Statement of Proposal about the deal are available from all Northland Regional Council offices and written submissions close at 5pm on December 13.