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Council Controlled Organisation Direction and Oversight
Committee
10 September 2024
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Quarter four
performance reports 2023/2024 for substantive council-controlled organisations
and Port of Auckland Limited annual report 2023/2024
File No.: CP2024/12607
Te take mō te
pūrongo
Purpose of the report
1. To receive a summary of, and comments on, Tātaki
Auckland Unlimited, Eke Panuku and Watercare fourth quarter
reports, for the period ending 30 June 2024.
2. To
receive the Port of Auckland Limited (POAL) annual report, which includes the
full year results for the key performance indicators in the 2023-2024 Statement
of Corporate Intent (SCI).
Whakarāpopototanga matua
Executive summary
3. Under
Auckland Council’s accountability framework, each substantive
council-controlled organisation (CCO) must provide a quarterly report. The
reports for Tātaki Auckland Unlimited, Eke Panuku and Watercare for the
fourth quarter of 2023/2024 are contained in Attachments A to C and are
measured against the 10-year Budget 2021-2031 and Statements of
Intent 2023-2026 (SOIs). The financial and
non-financial results in the quarter four reports are unaudited.
4. Under
the Memorandum of Understanding (MOU) between POAL and the council, POAL is
required to provide annual reports to council on the matters and within the
timeframes specified in the Port Companies Act 1988. POAL’s audited
annual report is attached as Attachment D. POAL’s full year results for
the key performance indicators against the annual targets in the 2023-2026
Statement of Corporate Intent (SCI) are included in the annual report.
5. Key
results are highlighted in the table below and in more detail in the body of
the report.
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Council-controlled
Organisation
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Summary of Quarter Four
results
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Tātaki Auckland Unlimited (TAU)
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· TAU achieved ten of its 13 performance measure targets,
with three not achieved. Two of the performance measures not achieved
did however make improvements on last year’s results.
· TAU achieved the highest level of annual ticketed
visitation ever recorded across TAU venues and events (2.09 million) and a
record $142.8 million contribution to regional GDP across its major event and
business events portfolio (against a target of $71 million).
· TAU’s operating financial result is favourable to
budget, with net direct expenditure being $7.2 million lower than the
approved budget, partially driven by strong revenue results and timing
differences in project spending, much of which has been incorporated into the
LTP projections.
· Capital expenditure was $57.5 million, 89 per cent of
the total planned expenditure for the year, with the unspent fund deferred to
continue project delivery in the current financial year.
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Eke Panuku
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· Eke Panuku met 10 of their 11 performance
measure targets for 2023/2024, based on unaudited results.
· The operating financial results for both the
Eke Panuku company and the property portfolio managed on behalf of the group
exceeded the budget for the year, with favourable variances of $5.6 million
and $7.3 million, respectively.
· Capital spend was $59.1 million, against the
original budget of $76.8 million. The unspent budget, resulting from delays
in progressing a construction contract for a new wastewater pump station and
the purchase of a site, have been deferred into the current year.
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Watercare
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· Of the 35 measures, targets were met for 27 measures
and seven were not met. Targets were not met for financial, procurement
through Māori owned businesses, health and safety, water leakage and
urgent sewage overflows attendance measures.
· The capital programme measure was not reported on and
improvements are being sought by council in this area.
· The legislation has now been enacted to provide for
Watercare’s debt
separation and the interim economic regulation of Watercare prior to full economic regulation coming
into force nationally.
· Net direct operating revenue was slightly
favorable to budget, supported by a $44 million favorable revenue result,
which more than offset the $41 million higher spend, largely due to one-off
costs from flood recovery, the Ōrākei Main Sewer repair, and
unbudgeted costs that were recovered by higher revenue.
· Capital expenditure totaled $1,045.8
million, 4 per cent below budget.
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Port of Auckland
Limited
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· POAL achieved an underlying net profit after
tax (NPAT) of $55.2 million, which is $10 million higher than the previous
year, driven by strong import volumes, revenue growth, and market share
gains.
· A total dividend of $40 million was
declared, an increase of $10 million compared to FY23 and $5 million above
the SCI target.
· The majority of the key measures did not
meet the SCI targets. While most results fell short of the targets, they are
close to meeting them, and some have shown year-on-year improvements. The
results also reflect the broader economic slowdown.
· All health and safety targets were met,
including achieving zero fatalities and no serious work-related illnesses or
injuries.
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Ngā tūtohunga
Recommendation/s
That the Council Controlled
Organisation Direction and Oversight Committee:
a) whiwhi / receive the 2023/2024 fourth quarter
reports for Tātaki Auckland Unlimited, Eke Panuku and Watercare provided as Attachments A to C of the agenda report.
b) whiwhi / receive the 2023/2024 annual report of
Port of Auckland Limited and the 2023/2024 full year results for the key performance
indicators in the 2021-2024 Statement of Corporate Intent provided in
Attachment D of the agenda report.
c) tono
/ request that Watercare work with staff to improve its reporting on the
delivery of its capital programme, including performance measures.
Horopaki
Context
6. Each
substantive CCO must provide a quarterly report to Auckland Council. They are
required to:
· summarise
the CCO’s performance against the approved budget and agreed targets in
the 10-year Budget and SOI;
· provide
a forecast of the CCO’s performance;
· identify
the cause of major variances;
· highlight
major achievements for the quarter; and
· signal
any potential or developing issues.
7. Tātaki
Auckland Unlimited, Eke Panuku and Watercare quarter four performance reports
2023/2024 are Attachments A to C of the agenda report. Auckland Transport
quarter four performance was reported to the Transport and Infrastructure
Committee on 5 September 2024.
8. Under
the MOU between POAL and the council, POAL is required to provide annual
reports to council on the matters and within the timeframes specified in the
Port Companies Act 1988.
Tātaritanga me ngā
tohutohu
Analysis and advice
Tātaki
Auckland Unlimited
Financial performance
9. TAU’s
net operating expenditure for the year was $7.2 million better than budget.
This favourable result was driven by strong performance at Auckland Zoo, the
New Zealand Maritime Museum, and higher event revenues, along with lower
spending related to project timing. These factors offset the additional staff
costs incurred for revenue-generating events. Some of the underspend related to
project timing will be carried forward into the current year.
10. Capital spend
was $57.5 million, achieving 89 percent of the full-year budget due to
programme timing changes. The unspent 2023/24 expenditure for committed
projects has been incorporated into the LTP for continued delivery, with no
change to overall project costs.
Non-financial performance and other issues
11. TAU has 13 SOI measures, of which 7 are Long-term Plan
measures. Nine of the thirteen measures are tracked quarterly, one is a
six-monthly measure and three are annual measures. At the end of quarter four,
ten performance measures were achieved, two were not achieved but improvements
were made on last year and one was not achieved.
12. The three performance measures that were not achieved were:
· “Number of children participating in educational
experiences through TAU venues and facilities.” Annual target is
163,000, quarter four result is 137,546. TAU attributes this partly to high
transport costs for schools impacting visitation.
· “Percentage change in greenhouse
gas emissions against 2028/19 baseline (scope 1 and 2 only).” Annual target is -17 per cent, quarter four result -14.6 per
cent. This is a significant improvement on the 2022/23 result (+16.6 per
cent). The reduction was largely driven by decarbonisation of the Auckland Art
Gallery and a more favourable emissions factor for electricity, reflecting a
high share of electricity being generated from renewable sources across New
Zealand.
· “Percentage of operating expenses funded by non-rates
revenue.” (LTP measure). Annual target is 59 per cent, quarter four
result is 55 per cent. This is below target but an improvement on last
year’s result of 51 per cent.
13. Highlights
for quarter four include:
· Ticketed attendance to the end of quarter four across TAU
venues and events was 2.09 million, meeting the year-end SOI target. In
addition, more than 137,000 children participated in educational experiences
through TAU venues and facilities during the year.
· The GDP contribution from major and business events was
$142.8 million at the end of quarter four – based on 84 events supported
by TAU during the year, surpassing the year-end target of $71 million.
· Auckland Writers Festival had its best year yet, with
85,000 attendees across 167 events, featuring 240 writers across the six-day
festival.
· Guo Pei: Fashion Art Fantasy exhibition finished at the Auckland Art Gallery in May,
concluding with 77, 158 visitors attending during the four-month period.
· As part of the Destination Partnership Programme and in
conjunction with Auckland Airport and Destination Queenstown, TAU hosted a
United States roadshow in April, with 23 tourism operators taking part.
The United States market is now the second largest market into New Zealand by
visitation and the highest value market for Auckland at an estimated spend of
$295 million to year-end May 2024.
· The Project Ikuna team won an international award for the
“Best Adult Financial Education Product” category at the Money
Awareness and Inclusion Awards, which received almost 200 entries from 35
countries. Project Ikuna is a government-funded initiative, delivered by TAU,
with workers gaining 1692 micro-credentials through the programme this year.
18.
The below table sets out a summary of performance measure results as at quarter
four.
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TAU
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Targets met or exceeded
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Targets not met
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Total
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Experiences and events
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4
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2
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5
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Facilities
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3
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1
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5
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Investment and innovation
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3
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3
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Total
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10
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3
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13
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Issues / risks
14. Auckland’s
limited funding for a major events programme over winter (compared with FIFA
Women’s World Cup 2023 last year) and continuing pressure on disposable incomes
means the destination industry is expecting a tough period. TAU expect
some impact on its own businesses in the next financial year, with the main
exposure likely to be in business events and performing arts.
15. To align
future programmes and optimise alternative revenue sources, certainty of future
funding pathways is required – especially for long-term major event
initiatives.
16. The closure
of the Wynyard Crossing bridge, alongside tough economic conditions, is having
a material effect on Auckland Conventions, Venues and Events (ACVE) contract
volumes and revenue.
17. Avian flu
represents an impending threat, with TAU rapidly preparing a response –
the focus being to protect the Zoo from disruption as much as possible,
alongside other TAU operations likely to be impacted. The Zoo
is collaborating closely with the Ministry for Primary Industries, the
Department of Conservation and Auckland Council to ensure a coordinated
response.
Eke
Panuku
Financial performance
18. Eke Panuku
operating financial results, including activities managed on behalf of the
council, were favourable for the full year. Revenue exceeded budget due to
several properties being held for longer than anticipated and positive outcomes
from lease reviews. Expenditures were lower than expected, primarily due to
staff vacancies and reduced rates costs.
19. Capital
expenditure was $59.1 million, $17.7 million below the planned full year budget
of $76.8 million. This variance was driven by delays in progressing a
construction contract for a new wastewater pump station and the purchase of a
site, which was deferred to better align with the timing of its development.
The unspent budget for these two projects has been carried forward into the
current financial year.
20. Note
that while Eke Panuku underspent their capex budget by $17.7 million, they have
met their target for delivering capital project milestones approved by their
board (all 15 capital project milestones were completed). The performance measure includes projects at planning and delivery
stage and does not align to total capital expenditure spend against budget for
the year, included in financial reporting. Given the
disparity, this committee have since requested that Eke Panuku (as well as
Tātaki Auckland Unlimited and Watercare) provide further information on
capital programmes delivery and major project milestones in their quarterly
reports from quarter one 2024/2025.
Non-financial performance and other issues
21. Eke Panuku has 12 performance measures
of which five are long-term plan measures. Nine of the 12 measures are tracked
quarterly, two are tracked annually (surveys) and one will not be measured this
year. Eke Panuku has met 10 of their 11 performance measure targets for
2023/2024, based on unaudited results.
22. The
performance measure that is not met is transform and unlock property sales,
through unconditional agreements (sale proceeds that are reinvested into urban
regeneration). $2.5m sales were achieved, against the target of $40m. Eke
Panuku advise that the target was not met due to the downturn in the property
market, they will provide an update on their residential and commercial
development work in the confidential section of the meeting.
23. The
transform and unlock sales target for 2022/2023 was also not achieved due to
the subdued property market ($13.7m against a target of $21.7m). However, the
asset recycling target agreed with Auckland Council was achieved in both
2022/2023 ($87.7m against a target of $70m) and 2023/2024 ($158.9m against a
target of $115m).
24. Eke
Panuku have 13 urban regeneration programmes with deliverables for 2023/2024.
8 programmes are on track and 5 programmes have experienced delays
(Henderson, Panmure, Maungawhau, Manukau and Pukekohe).
25. A
performance measure on commercial / retail gross floor area or net lettable
area was included in previous long-term plan (2021-2031) but has now been
discontinued. The performance measure was problematic because, post Covid, the
scale of new commercial spaces created in one year is relatively small and the
projects are irregular.
26. The table below sets out a summary of performance against SOI
performance targets for 2023/2024:
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Eke Panuku
strategic focus areas
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Target met or exceeded
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Target not met
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Total
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Urban regeneration programmes
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4
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1
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5
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Property management services
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3
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3
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Sector leadership
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3
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3
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Total
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10
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1
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11
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27. Highlights
for quarter four include:
· Exceeding
(unaudited) performance targets, including general asset sales ($158.9m against
a target of $115m), new homes (135 dwellings against a target of 60), public
realm targets (20,065sqm against a target of 7,000sqm) and income received from
properties ($27m against a target of $17.3m).
· Sale of the Downtown
Carpark site to Precinct properties, who will partner with Ngāti
Whātua Ōrākei to redevelop the site into new offices,
residential, hospitality and public urban spaces.
· A preferred
development partner has been selected for the Edinburgh Superblock, Pukekohe.
· Design work is
underway for Te Ara Tukutuku (Wynyard Point) for the ten hectares of
development sites, open space, laneways, stormwater, utilities, and
landscaping.
· The Port Precinct
Framework Plan was presented to the Governing Body in May 2024, with approval
to work on a masterplan for the central wharves (Queens, Captains Cook,
Marsden, Hobson Wharf extension). The agreed plan and
investment priorities will enable ferries, cruise ship and public access
outcomes.
Issues / risks
28. The slow property market continues to affect development outcomes,
including asset sales (as noted above) and the future development of housing
units through development partners. Eke Panuku will provide an update on these
risks in the confidential section of the agenda.
29. Following a series of technical faults, the Wynyard Crossing Bridge
has begun a programme of extensive refit work so it can return to reliable
operations as soon as possible. The works are expected to be completed in time
for next summer (late 2024). The resulting loss of pedestrian and cyclist
access to the Wynyard area on this route is impacting local businesses and
residents. During the quarter four period, Eke Panuku has continued to run a
public information campaign on alternative access options, and provided (and
then expanded) the use of the Red Boat ferry service.
Watercare
Financial performance
30. Watercare's
net direct operating revenue was $588 million for the 2023/24 financial year,
slightly favourable to budget.
31. Direct
revenue exceeded the budget by $44 million. Although water and wastewater
revenue fell short by $15 million due to lower consumption than planned, this
was offset by $59 million in favourable other revenue sources, driven by higher
Infrastructure Growth Charges and various other streams.
32. Direct
expenditure was $41 million over budget, largely due to flood damage recovery,
higher costs associated with the Waikato District Council contract and Water
reform (both covered by corresponding revenue), and unexpected high-value
faults in the last quarter, including a significant failure at Pump Station 25.
33. Capital
expenditure for the year totalled $1045.8 million, 4 per cent below the budget
of $1086.5 million. Spending was reprioritised due to factors like the delay in
receiving flood insurance revenue, settlement of the Central Interceptor
escalation claims and additional costs for the Ōrākei Main Sewer
repair. Despite some project delays, key initiatives like the Central
Interceptor and Snells Beach Wastewater Treatment Plant made strong progress.
Non-financial performance and other issues
34. Watercare are now reporting on 35 measures, up from 29
measures. Two measures on water quality
required by the Department of Internal Affairs have been superseded by eight
new Taumata Arowai measures. The below table sets out a summary of performance
against these measures.
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Watercare
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Target met or on track
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Target not met or not on track
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Not reported in the period
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Total
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Measures
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27
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7
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1
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35
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35. The seven measures where targets were not met in
the quarter are:
· Response time for attendance at sewerage overflows – 84
minutes median compared with a target of less than 60 minutes. This also means
that the target to meet all DIA measures has been missed. Overflows are triaged
as P1 (one hour response target) and P2 (4 hours response target). The target
has been increased to 75 minutes for 2024/2025.
· Leakage performance
– 116 litre/connection/day against a target of 107.9 l/c/d. The
result was 90.2 l/c/d in Quarter 3. Data collection has been problematic as it
is dependent on actual meter readings which are running behind schedule. Smart
meters would address the data issue, but in the meantime reliable measurement
is needed.
· Debt to revenue
– At 3.58, Watercare’s debt to revenue ratio was above the 3.35
target, with the Ōrākei Main Sewer incident, delay in flood insurance
recoveries and Central Interceptor cost escalation impacting on the cash
position. The Governing Body approved temporary additional headroom for
Watercare of $130 million on 8 February 2024.
· Controllable costs
– Costs were $435.1 million against the target of $396 million due to the
unplanned cost pressures noted above. Contributing to the unfavourable results
were the costs from the failure of the Ōrākei Main Sewer in September
2023 Water Services Reform costs, and higher capital costs for Waikato District
Council (WDC). Both water reform and WDC costs were offset by additional
revenue.
· Procurement sourced
through Māori owned business – The result was 2.47 per cent against
the increased target of three per cent. Watercare expects the recent
establishment of a Māori supplier network Ngā Kakau Paraha to
help support progress towards this target and notes that while falling short of
the target, the $30.63 million expenditure with Māori suppliers in
2023/2024 was an increase of 34 per cent from the previous year.
· Total recordable
injury frequency rate (TRIFR) per million hours worked – At 19.6 was an
improved result from the previous quarter but above the maximum target of ten.
Watercare commissioned an independent review of its health and safety approach
and performance and is implementing its recommendations. A leading measure for
health and safety is included in its SOI 2024-2027. TRIFR will continue to be
monitored by the board.
36. No results for the quarter are provided for the
measure of capital programme delivery in line with the asset management plan
baseline approved by the board as Watercare advise they are assessing how best
to report on it. The results they provided for the Quarter three were as
follows: Five of 12 of projects were completed as scheduled in the
quarter and all of these were delivered within the approved budget, which was
under the 80 per cent target. Staff will work with Watercare to resolve the
lack of reporting, noting that in approving the 2024-2027 statements of intent
for Eke Panuku, Tātaki Auckland Unlimited and Watercare this committee
requested that further information is provided on capital programmes delivery
and major project milestones in quarterly reports.
37. Following lower than normal rainfall in recent
months, Watercare has increased production at the Waikato Water Treatment Plant
and eased off on production at Huia and Ardmore plants, which treat water from
dams in the Waitākere and Hūnua ranges. As a result of increasing
production at the Waikato WTP, there was an additional unbudgeted cost impact
of $900k.
38. The Local Government (Water Services Preliminary
Arrangements) Bill was introduced in late May 2024 and has now been enacted.
Watercare worked with Auckland Council on their submission to the Bill, which
will allow Watercare and Council to achieve debt separation and sets out an
interim regime for Watercare ahead of full economic regulation regime
nationally.
39. Decision making for the southern section of the
North-West Growth Servicing Pipeline has been deferred to December 2024 by the
Board of Watercare, to accommodate engagement on the options with local
stakeholder groups in the Warkworth area. Wastewater tankering (limited by
specific agreements) and connection controls will be required for the Northern
Warkworth Growth area until this new pipeline is in service in 2028.
40. In May 2024, an independent panel of
commissioners recommended Watercare withdraw its Notice of Requirement to
designate land in Glenbrook to build a wastewater treatment plant.
Subsequently, Watercare withdrew the Notice of Requirement on 5 July 2024 and
is reassessing options for the long-term solution for servicing growth in the
area.
Issues / risks
41. On 17 June
2024, a minor chlorine leak occurred at the Huia Water Treatment Plant. The
leak was picked up by detector which activated the alarm on site.
42. Out of 40
water distribution zones, two water distribution zones (Wellsford and Te Henga)
did not meet the chlorine residual disinfection requirements in June.
43. In June,
Watercare’s third largest pump station – on Miranda Street in
Avondale – experienced pump and pipework failures, causing significant
overflows into Whau and Henderson creeks. Watercare stood up a level three
incident (the highest level) from 8 June to 12 June 2024.
Port of
Auckland
Financial performance
44. POAL reported revenue of $339 million for the year. This
is an increase of $19 million (or 6 per cent) on the prior year.
45. Operating expenses increased $14.6 million (7 per cent)
from FY23 due to inflation and increased wage costs reflecting the lift in
stevedore numbers to meet demand.
46. The underlying net profit after tax (NPAT) for the year
was $55.2 million, exceeding the SCI target by $3.1 million and $10 million
higher than the previous year.
47. A final dividend of $20 million was declared, bringing
the total declared dividends for the year to $40 million, an increase of $5
million compared to the SCI target.
48. Capital expenditure was $39.4 million for the full year,
against the annual budget of $44 million.
SCI Financial Targets
49. POAL’s
SCI results for the year are included in POAL’s Annual Report (Attachment
D). POAL met 5 of the 11 SCI financial performance targets:
· Free
Cashflow to Sales ((EBITDA-Capex)/revenue %): 24.2 per cent exceeding the
target of 23.1 per cent .
· Return on Equity (Underlying NPAT/average Equity): 5.6 per cent exceeding the
target of 5.1 per cent.
· Net
Profit after Tax (Underlying NPAT): $55.2 million exceeding the target of $52.1
million. POAL did not meet revenue growth target due to lower demurrage
revenue, but still achieved NPAT target with costs savings.
· Dividend
declared: $40 million exceeding the target of $35 million.
· Interest
coverage ratio: 4.2x exceeding the target of
3.6x.
50. 6 of the 11 SCI financial performance targets were not met:
· Return
on Assets (EBIT/total assets): 4.9 per cent is below the target of 5.2 per
cent.
· Sales
Growth (revenue % growth): 6 per cent which is below the target of 8 per cent.
· Operating
Margin (EBIT/revenue): 22.1 per cent which is below target of 24.1 per cent.
· Leverage
(Net debt/EBITDA): 3.23x which is below target of 3.22x.
· Capital
Expenditure: $39.4 million below target of $44.0 million.
· Ratio
of consolidated shareholders’ funds to total assets was 63.5 per cent
which is below the target of 64.6 per cent.
Non-financial performance and other issues
51. The
non-financial results against SCI targets are set out below.
SCI Productivity
Targets
52. The majority of POAL’s key productivity targets did not meet
the SCI targets. While most results fell short of the targets, they are close
to meeting them, and some have shown year-over-year improvements. The results
also reflect the broader economic slowdown:
· Container Ship on time departure percentage
was 51 per cent not meeting the target of 70 per cent.
· Customer Experience Score result was 7.28/10 below the target of
7.5/10 and below last year’s score of 7.5/10.
· TEU (Twenty-foot Equivalent Unit) volume was 845,000 not
meeting the target of 887,000. This is a year-on-year improvement of 3.2 per
cent.
· Crane rate (as measured by MOT)
was 23.7 not meeting the target of 26.
· Ship rate (as measured by MOT) was
48.94 not meeting the target of 55 but a year-on-year improvement from 45.5.
· Import Dwell Time: 2.1 days only just below target of <2 days.
This is a significant improvement from 3.0 last year.
· Percentage
of landside moves on rail was 13 per cent not meeting the
target of 16 per cent.
· Tonnes
(excluding roll on roll off) ’000s was 1.846, which was below the target
of 2.019.
· Car
volume (units) 208,000, which was below the target of 230,000.
· Multi-cargo breakbulk tonnage was
3,862,000, not meeting the target of 4,288,000.
· Multi-cargo average car dwell time was 2.17 days slightly exceeding
the target of 2.1 days.
53. The
following productivity targets met the SCI target:
· Percentage Truck
collection point (peak versus non-peak) was 47.5 per cent better than target of
<49 per cent.
· Cruise Ship Calls of
133 above target of 120.
SCI Safety
and Wellbeing Targets
54. POAL
report zero fatalities or serious work-related illnesses or injuries in the
year.
55. POAL
Leaders completed more safety interactions than targeted. Critical risk
variations were 148 per cent completed versus scheduled and Leader safety walk
and talks were 146 per cent completed versus scheduled.
SCI People and
Culture – Whanaungatanga Targets
56. Gender split
was 18.0 per cent against a target of 20 per cent. Recruitment has been for
mainly for stevedores which is dominated by males. POAL note that gender split
has improved year on year.
57. Employment
engagement score 73 per cent which met the target of 73 per cent and a year on
year improvement from 68 per cent.
58. Staff
turnover percentage was 9.7 per cent which met target of 18 per cent.
SCI Sustainability /
Kaitiakitanga Targets
59. POAL remains
on track to meet the long-term environmental sustainability goals of being zero
emissions by 2050 and zero waste to landfill by 2040 (see page 27 of the Annual
Report for POAL’s emission reduction pathway).
60. One Health of
the Harbour initiative was completed.
61. Average
carbon emissions per TEU (kg CO2) (including scope 1 & 2) was 11.1, which
is better than the target of 11.9.
62. Percentage of
waste diverted from landfill was 6.5 per cent better than target of 5.0 per
cent.
63. POAL held all
required quarterly community reference group meetings .
Statement of Corporate Intent
Results Summary
64. The table below summarises the SCI performance measure results as at
quarter four:
|
POAL SCI Targets
|
Targets met or exceeded
|
Targets not met
|
Total
|
|
Performance targets
|
2
|
11
|
13
|
|
Safety & Wellbeing
|
3
|
0
|
3
|
|
People and Culture - Whanaungatanga
|
2
|
1
|
3
|
|
Sustainability / Kaitiakitanga
|
4
|
0
|
4
|
|
Financials
|
5
|
6
|
11
|
Issues / risks
65. Looking ahead
POAL expect to see solid trading results throughout FY25 and in line with the
agreement with the Council during the LTP process, they are committed to
further improving the return on equity and the profitability of the port.
66. POAL’s
Annual report (section G) describes the financial risks that the group have
identified and how it manages these risks to protect its financial position and
performance.
Tauākī whakaaweawe
āhuarangi
Climate impact statement
67. The
quarterly performance reports are a key tool to monitor the progress of each
CCO and POAL on climate change action. The CCOs and POAL quarterly reports
contain commentary on activities relating to climate change.
68. Highlights
for TAU in quarter four have included, through Climate Connect Aotearoa,
commencement of an energy sharing pilot in South Auckland, in partnership with
Ara Ake and Counties Manukau Energy. The pilot looks to share the
benefits from energy with the community, with agreement for 100 percent of
power generated from solar panels installed at Counties Energy providing free
energy to three community organisations in the area. Additionally,
upgrades at Go Media Stadium are planned for September, including a
decarbonisation project to replace a gas boiler with CO2, heat pumps in the
West Stand and an electrical switchboard upgrade for solar.
69. Eke
Panuku key projects and activities in quarter four include testing tools for
assessing embodied carbon of designs for capital projects, deconstruction projects in Northcote which aim to identified and
salvage materials for reuse and increasing the minimum standards for apartment
developments from Homestar 6 to Homestar 7.
70. Watercare
performed well against its greenhouse gas emission measure, with a 66,539 tCO2e
result against a target of less than 89,200 tCO2e. The good result is due to
positive performance in electricity, natural gas, fuel consumption and
process-related emissions. Watercare have started using software that provides
visibility of GHG emissions at cost centre level and which should offer
valuable operational insights.
71. POAL remains
on track to meet the long-term environmental sustainability goals of being zero
emissions by 2050 and zero waste to landfill by 2040 (see page 27 of the Annual
Report for POAL’s emission reduction pathway).
Ngā whakaaweawe me
ngā tirohanga a te rōpū Kaunihera
Council group impacts and views
72. Each CCO and POAL
quarterly report contains information on how they are contributing to the
council’s outcomes and objectives.
Ngā whakaaweawe
ā-rohe me ngā tirohanga a te poari ā-rohe
Local impacts and local board views
73. The governance of substantive CCOs and POAL is a
responsibility delegated to the CCO Direction and Oversight Committee. We have
not sought the views of local boards. CCOs provide six-monthly progress
and performance reports to local boards. The quarterly reports also provide a
summary of the engagement that CCOs have carried out with local boards during
the quarter.
Tauākī whakaaweawe
Māori
Māori impact statement
74. Each CCO and POAL report on their contribution towards achieving
Māori Outcomes in their quarterly report.
75. Highlights
for TAU have included the confirmation of $3.36 million of LTP Māori
Outcomes Fund investment over three years. The funding will increase
investment in two existing hubs – ReserveTMK in Glen Innes and Te Ngahere
in Manukau. These hubs are operated by matāwaka organisations
and focus on innovation and entrepreneurship. Additionally, a new hub sitting
within the GridAKL network will be established at Te Puna Creative Innovation
Quarter at Henderson. TAU are partnering with Te Kawerau ā Maki on
development of the hub.
76. Key achievements for Eke Panuku include:
· Engagement survey
results show 60% of mana whenua are satisfied with the support they received
from Eke Panuku, an increase from the previous year (56% in 2022/2023).
· 59 initiatives were delivered to support Māori outcomes
including collaborating with mana whenua to ensure
public realm projects achieve high-quality stormwater, rainwater, and design
outcomes and supporting mentorship and career coaching opportunities for
Māori employees.
· Overall spend of
$3.45m on Māori businesses. This was spread across 51 Māori
businesses, this included an increase of $300k spent on Māori businesses
in construction.
77. Watercare are
refocusing on its mana whenua partner relationships, following the return of
seconded Māori Strategy and Relationships kaimahi from the water reform
National Transition Unit. Watercare has undertaken a review of its Mana Whenua
Managers Kaitiaki Forum.
78. POAL annual
report notes they offered te reo Māori classes (level 1 and 2) during the
financial year.
Ngā ritenga
ā-pūtea
Financial implications
79. Each of the CCOs and POAL’s quarterly reports contain
information regarding their financial performance. These are described in the
sections above.
Ngā raru tūpono me
ngā whakamaurutanga
Risks and mitigations
80. Each of the
CCOs quarterly reports and POAL’s annual report (section G) contain
information regarding their risks and mitigations, which
is summarised above.
Ngā koringa ā-muri
Next steps
81. This report is primarily for information
purposes. The next CCO and POAL quarterly reports (quarter one, July to
September 2024) will be provided to the CCO Direction and Oversight Committee
in November 2024.
Ngā tāpirihanga
Attachments
|
No.
|
Title
|
Page
|
|
a⇨
|
Tataki Auckland Unlimited quarter four report 2023/2024
|
|
|
b⇨
|
Eke Panuku quarter four report 2023/2024
|
|
|
c⇨
|
Watercare quarter four report 2023/2024
|
|
|
d⇨
|
Port of Auckland Limited annual report 2024
|
|
Ngā kaihaina
Signatories
|
Authors
|
Chris Levet - Principal Advisor
Rachel Wilson - Principal Advisor
Trudi Fava - Principal Advisor
Sarah Johnstone-Smith - Principal Advisor
Tracy Xu - Principal Advisor CCO Financial Planning
|
|
Authoriser
|
Alastair Cameron - Manager CCO/External Partnerships
team
|
