Extraordinary Meeting of the Hawke's Bay Regional Council
Date: Wednesday 20 March 2019
Time: 3.00pm
Venue: |
Council Chamber Hawke's Bay Regional Council 159 Dalton Street NAPIER |
Agenda
Item Subject Page
1. Welcome/Apologies/Notices
2. Conflict of Interest Declarations
3. Confirmation of Minutes of the Regional Council Meeting held on 27 February 2019
Decision Items
4. Hearings and Decision Making Processes for Additional Council Controlled Organisation to Support IPO Transaction 3
Wednesday 20 March 2019
SUBJECT Hearings and Decision Making Processes for Additional Council Controlled Organisation to Support IPO Transaction
Reason for Report
1. To outline the process to be undertaken to hear and consider feedback received on the creation of a new Council Controlled Organisation to support a potential minority Initial Public Offering (IPO) of the Napier Port.
2. Submissions and feedback received during the consultation are attached to this cover report for Councillors to read in advance of the Hearing on 20 March 2019.
Background
3. Consultation on establishing an additional Council Controlled Organisation to support the IPO transaction began on Friday 15 February 2019 and officially closed at 5.00pm on Monday 11 March 2019. A total of 84 submissions were received, of which 5 submitters indicated they wish to present their submission in person.
4. The channels used to inform the public of this consultation included a release to media, newspaper advertising (in Hawke’s Bay Today 5, CHB Mail 3 and Wairoa Star 3), and Facebook. Three individual Facebook posts reached 17,386 screens, achieved 1,195 Post Clicks, and attracted 170 Likes, Reactions, Comments and Shares.
5. All information related to this consultation was available online at hbrc.govt.nz and at Regional Council offices in Napier, Taradale, Waipawa and Wairoa. Five forms were mailed out on request; 200 were printed and provided to Napier Port staff on request.
6. Of the 84 submissions, a total of 60 hard copy, 19 online and five email submissions were received.
Verbal submissions
7. Submission Hearings are scheduled to begin at 3.00pm, and the timetable (to be confirmed) is attached. Each speaker is allocated 10 minutes, and this time will be strictly adhered to.
Next Steps
8. An analysis of submissions and a decision paper will be on the Agenda of the Council meeting on 27 March 2019.
Decision Making Process
9. Council is required to make every decision in accordance with the requirements of the Local Government Act 2002. Staff have assessed the requirements in relation to this item and have concluded:
9.1. The use of the special consultative procedure as prescribed by the Act has been used.
9.2. The persons affected by this decision are all those persons with an interest in the region’s port and all ratepayers in the region.
That Hawke’s Bay Regional Council receives and considers the verbal and written submissions, including social media comments received on “Consultation on establishing an additional Council Controlled Organisation” as provided and in accordance with the consultation provisions of the Local Government Act 2002. |
Authored by:
Drew Broadley Community Engagement and Communications Manager |
Desiree Cull Strategy and Projects Leader |
Approved by:
Jessica Ellerm Group Manager Corporate Services |
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⇩1 |
20 March 2019 CCO Hearings Timetable |
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⇩2 |
CCO Submissions Received |
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⇩3 |
HBRIC CCO submission 18 |
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⇩4 |
Napier Port CCO submission 51 |
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⇩5 |
Dallimore CCO submission 53 |
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20 March 2019 CCO Hearings Timetable |
Attachment 1 |
Timetable of Verbal Submissions
Time |
Name |
Submitter ID |
pg |
3.00pm |
Meeting Commences |
|
|
3.10pm |
Bruce Bisset (confirmed) |
22 |
11 |
3.20pm |
Jan Vaessen (confirmed) |
75 |
21 |
3.30pm |
Roger Muir (confirmed) |
56 |
18 |
3.40pm |
Daniel McKnight (confirmed) |
33 |
14 |
3.50pm |
Laurence Leonard (to be confirmed) |
32 |
14 |
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|
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Attachment 2 |
What do you support about this proposal and why? |
Seems simple and straightforward. |
What don’t you support about this proposal and why? |
Makes me wonder about the purpose and reason for the continued existence of HBRIC post the IPO? What would be the reason for not liquidating HBRIC afterwards? Perhaps the Council could explain this a bit better to the ratepayers. |
Andrew Palairet Submitter 2
What do you support about this proposal and why? |
A CCO should only be setup if HBRIC is closed. Council already has one semi-redundant CCO and it doesn’t need two. Directors should be 2-3 councillors plus HBRC CEO - all directors should be unpaid. If the advice is to set one up (presumably for some sort of tax benefit or de-risking HBRC) then go ahead, but surely you don’t need HBRIC as well. Please make the CCO as lean as possible - leverage council finance team etc. It shouldn’t need any staff. |
What don’t you support about this proposal and why? |
As above. |
Paul Sampson Submitter 3
What do you support about this proposal and why? |
The proposal is supported as it provides
clear accountability back to the Port Directors. |
What don’t you support about this proposal and why? |
Full support |
Kathryn Bayliss Submitter 4
What do you support about this proposal and why? |
I do not support this proposal. |
What don’t you support about this proposal and why? |
I disagree with the proposal is to establish a new
Council Controlled Organisation (CCO), named ‘HoldCo’ - as in
‘holding company’ to facilitate a potential minority share issue
of Port of Napier Limited (Napier Port or Port). Marketability would be better, investors will understand
clearly they are investing in Port of Napier Limited. |
Matt Edwards Submitter 5
What do you support about this proposal and why? |
|
What don’t you support about this proposal and why? |
To HBRC, |
Howard Roberts Submitter 6
What do you support about this proposal and why? |
nothing |
What don’t you support about this proposal and why? |
The port is big enough. The port is a owned by the rate payers, and should stay that way. I will not be voting for candidates, who disagreed with me on this and will be advising family & friends to do like wise. |
Anthony Moore Submitter 7
What do you support about this proposal and why? |
Nothing. |
What don’t you support about this proposal and why? |
This whole port sale is wrong. There are directors and councilors that need to be held accountable for this situation we are in. More and more evidence is coming to light about how the port has been run into debt just to now "have" to sell. A report has just come out in Australia about important information was held from parliament when it came to privatization of their ports and now we have one of them here now on the Napier Port board and has been working with them for years planning this sale. Now it's costing $11million to carve the port up, DISGUSTING. I have no faith or trust at all in this HB Regional Council, I have no faith that this or any submission that doesn't agree with the Council ideas will even be read. It's time Councilors are held accountable for their actions and not a free ride to do what they want. I will never forget the names of this councils members if this port is sold. And I bet you hold your submission meeting at a time when most people have to work and can't make it, we know your dirty tricks. |
Mathew Pere Submitter 8
What do you support about this proposal and why? |
NO. PORT NOT FOR SALE AS A RATE PAYER IM ALREADY A SHAREHOLDER IN THE PORT. |
What don’t you support about this proposal and why? |
NO PORT NOT FOR SALE |
William Baggett Submitter 9
What do you support about this proposal and why? |
Nothing Port not for Sale As a napier rate payer I'm already a Shareholder in the Port. |
What don’t you support about this proposal and why? |
Nothing |
Anne Taana Submitter 10
What do you support about this proposal and why? |
NOTHING NAPIER PORT NOT FOR SALE |
What don’t you support about this proposal and why? |
NOTHING NAPIER PORT NOT FOR SALE. |
Laryssa Taana Submitter 11
What do you support about this proposal and why? |
NOTHING NAPIER PORT NOT FOR SALE. |
What don’t you support about this proposal and why? |
NOTHING NAPIER PORT NOT FOR SALE |
Hamish Taana Submitter 12
What do you support about this proposal and why? |
NOTHING NAPIER PORT NOT FOR SALE. |
What don’t you support about this proposal and why? |
NOTHING NAPIER PORT NOT FOR SALE. |
Steve Haenga Submitter 13
What do you support about this proposal and why? |
NOTHING NAPIER PORT NOT FOR SALE AS A NAPIER RATE PAYER, IM ALREADY A SHAREHOLDER OF THE PORT! |
What don’t you support about this proposal and why? |
NAPIER PORT NOT FOR SALE. ALREADY A SHAREHOLDER OF THE PORT! |
Phillip Taana Submitter 14
What do you support about this proposal and why? |
NOTHING NAPIER PORT NOT FOR SALE. |
What don’t you support about this proposal and why? |
NOTHING NAPIER PORT NOT FOR SALE. |
Blair O'Keeffe Submitter 18
On behalf of Hawke's Bay Regional Investment Company Limited
Submission 18 attached
Paul Simmonds Submitter 19
What do you support about this proposal and why? |
I Don't support this proposal at all because None of these decisions should be made when the Final decision hasn't been made on any sale of the port, or port sale. |
What don’t you support about this proposal and why? |
Because as a rate payer Im aganst selling the port at all, Even our Local MP STUART Nash said No to selling the port. |
Mel Malone Submitter 20
What do you support about this proposal and why? |
I do not support the sale of Napier Port, |
What don’t you support about this proposal and why? |
Job security, local Employment for local people, Rates
will go up 100% and will be unaffordable for the average working person, O
and for the employees of the port who will potentially have no job in the future
and will also potentially loose their homes due to no income and rate rises. |
Marjorie Ida Robinson Submitter 21
What do you support about this proposal and why? |
I am happy for the HBRC to invest in the PORT I would like the citizens of H.B to be able to purchase shares. My Parents & I were all born in Napier & like to support local issues |
What don’t you support about this proposal and why? |
|
Sharleen Baird Submitter 22
What do you support about this proposal and why? |
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What don’t you support about this proposal and why? |
were the Port sale to go ahead, I'd prefer HBRIC to handle the sale |
Melissa Greville Submitter 23
What do you support about this proposal and why? |
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What don’t you support about this proposal and why? |
I dont want the rates to increase, local jobs for local people. Hawkes Bay should be proud of owning the port and should be trying to keep it this way, we should be trying to hold onto it while we still can. Job security for local familys. |
Grenville Christie Submitter 24
What do you support about this proposal and why? |
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What don’t you support about this proposal and why? |
I would like HBRIC to be CCO if the Port sale were to go ahead. |
Raewyn Benson Submitter 25
What do you support about this proposal and why? |
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What don’t you support about this proposal and why? |
I urge HBRC to stack HoldCo's board with councillors, and NOT port directors. |
David Bishop Submitter 26
What do you support about this proposal and why? |
|
What don’t you support about this proposal and why? |
I do not like the fact that HBRC will be
giving all directorships of Holdco to individuals who have no responsibility
to Council. |
Pene Johnstone Submitter 27
What do you support about this proposal and why? |
|
What don’t you support about this proposal and why? |
That Napier Port Directors are going to be
the directors of Hold Co. HBRC (The ratepayers)are loosing control |
Tony Andrews Submitter 28
What do you support about this proposal and why? |
I support that concillors make up the directors of HoldCo |
What don’t you support about this proposal and why? |
The directors of holdco shouldn't be the directors of the port of napier, rather made up of councillors. WHY, so they have some control over the ports future |
Donna Gray Submitter 29
What do you support about this proposal and why? |
|
What don’t you support about this proposal and why? |
I don't see Ban 1080 in Hawkes Bay |
Megan Young Submitter 30
What do you support about this proposal and why? |
Ok with a CCO BUT, anyone sitting on the board SHOULD NOT have shares in the port already |
What don’t you support about this proposal and why? |
|
Roger Muir Submitter 31
What do you support about this proposal and why? |
I do not support this proposal ini any way. |
What don’t you support about this proposal and why? |
Shares for the port of Napier should not be sold in a public offering. Therefore there is no need for yet another regional council entity. This entity just provides another avenue for non-local accountants, lawyers, and directors to clip the money ticket, and allows control of the port to be squandered out of area. |
Bruce Bisset Submitter 32
What do you support about this proposal and why? |
|
What don’t you support about this proposal and why? |
Directorship of the Port of Napier holding company: Even if this scenario fails to alarm, it makes best
sense for council to have direct representation on HoldCo’s board
simply to maintain a careful and prudent overview of proceedings, so as to be
able to properly advise council of the detail of any matters the Board may be
considering of which council may otherwise be unaware. |
Daniel Milton McKnight Submitter 33
What do you support about this proposal and why? |
I Do Not support this proposal |
What don’t you support about this proposal and why? |
Napier port should not be sold |
John Kent Submitter 34
What do you support about this proposal and why? |
|
What don’t you support about this proposal and why? |
1) The board of the Port of Napier should be
concentrated on efficient and effective running of the port This has nothing
to do with selling the shares |
Brendon Strong Submitter 35
What do you support about this proposal and why? |
I don't support it. |
What don’t you support about this proposal and why? |
NAPIER PORT NOT FORSALE |
Blair Griffin Submitter 36
What do you support about this proposal and why? |
|
What don’t you support about this proposal and why? |
port should not Be sold. |
Tu Heather Submitter 37
What do you support about this proposal and why? |
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What don’t you support about this proposal and why? |
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Clinton Hawker-Guilford Submitter 38
What do you support about this proposal and why? |
I do NOT!! support this proposal |
What don’t you support about this proposal and why? |
Napier port Not four sale |
Gary Fazackerley Submitter 39
What do you support about this proposal and why? |
I DONOT SUPPORT THIS PROPOSAL. |
What don’t you support about this proposal and why? |
NAPIER PORT NOT FOR SALE. |
Peter Howard Submitter 40
What do you support about this proposal and why? |
|
What don’t you support about this proposal and why? |
NAPIER PORT NOT FOR SALE. |
David Marden Submitter 41
What do you support about this proposal and why? |
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What don’t you support about this proposal and why? |
NAPIER PORT SHOULD NOT BE SOLD. TOO MUCH FISCAL IRRESPONSIBILITY TO DATE BY THE HBRC & PORT BOARD POTENTIAL FOR EXTERNAL INFLUENCES |
David Hughes Submitter 42
What do you support about this proposal and why? |
Nothing |
What don’t you support about this proposal and why? |
All - Job security - Local welfare - |
Scott Thomas Submitter 43
What do you support about this proposal and why? |
I Don't Support it. |
What don’t you support about this proposal and why? |
Everything - the Port is not for Sale |
Tony Colin Sherriff Submitter 44
What do you support about this proposal and why? |
I support the requirement for a 6th Berth. |
What don’t you support about this proposal and why? |
I don't support the creation of a CCO or the listing of shares in Port of Napier. I believe we create unstable working conditions and job insecurity. I Also believe the Ports is capable of servicing this debt by itself. I'd support an increase in regional council rates |
Christopher James Cameron Submitter 45
What do you support about this proposal and why? |
|
What don’t you support about this proposal and why? |
I do not support this proposal. |
David Jansen Submitter 46
What do you support about this proposal and why? |
I DONT SUPPORT THIS PROPOSAL |
What don’t you support about this proposal and why? |
NAPIER PORT NOT FOR SALE |
Bruce Ward Submitter 47
What do you support about this proposal and why? |
Don't support |
What don’t you support about this proposal and why? |
I think the port shouldn't be sold |
James Morris Submitter 48
What do you support about this proposal and why? |
I DO NOT SUPPORT THIS PROPOSEL |
What don’t you support about this proposal and why? |
NAPIER PORT NOT FOR SALE |
William John Brocklehurst Submitter 49
What do you support about this proposal and why? |
I DO NOT SUPPORT THE PROPOSAL |
What don’t you support about this proposal and why? |
NAPIER PORT NOT FOR SALE |
Sam Young Submitter 50
What do you support about this proposal and why? |
I DO NOT SUPPORT THIS PROPOSAL |
What don’t you support about this proposal and why? |
NAPIER PORT NOT FOR SALE |
Alasdair MacLeod Submitter 51
On behalf of Napier Port
Submission 51 attached
Hohepa Huia Hoani Kereti Submitter 52
What do you support about this proposal and why? |
I support investment in Port for the future of the Hawkes Bay as a whole. |
What don’t you support about this proposal and why? |
I don't support regional council for the position that we are in at the moment with the huge debt they need to be held responsible. Selling 49% of shares in my mind will not work. |
Larry Dallimore Submitter 53
On behalf of Westshore resident
What do you support about this proposal and why? |
I accept the need for a CCO or HBRIC to sell the Port however I do not support the sale of this pivotal asset belonging to every HB resident, I understand why HBRC has to create cash reserves and reduce exposure to any downturn that would affect HB's most valuable and asset and profit dividends supporting the HBRC balance sheet. |
What don’t you support about this proposal and why? |
Please see Submission 53 attached |
Ford Stuart-Gray Submitter 54
What do you support about this proposal and why? |
I DON'T SUPPORT THE PROPOSAL |
What don’t you support about this proposal and why? |
NAPIER PORT NOT FOR SALE |
John Stratton Goudie Submitter 55
What do you support about this proposal and why? |
That the Port name be PORT OF NAPIER I see this in the PORT OF NAPIER/ANNUAL REPORT/3 PUBLISHED on its WEBSITE |
What don’t you support about this proposal and why? |
I don't support the PORT NAME being NAPIER
PORT because this turns NAPIER into an adjective which is wrong and is
mentioned in this proposal 25 times. eg ("Port of Tauranga" for a
comparison) |
Laurence Leonard Submitter 56
What do you support about this proposal and why? |
I support investment in the Port and its future. |
What don’t you support about this proposal and why? |
I don't support the Regional Council shirking their responsibility for the position that they have placed the Port in. It they have created a level of debt that does not allow the Port to grow they need to be held responsible. Selling 49% of the shares will not do this as they will not do this as they will still have the ability to continue to make bad business choices. |
Glen Adam Kohlis Submitter 58
What do you support about this proposal and why? |
|
What don’t you support about this proposal and why? |
Selling the Port is a farce and is basically stealing from our children and grandchildren |
Tania Louise Heitiki Smith Submitter 59
What do you support about this proposal and why? |
I support investment in the Port and its future. |
What don’t you support about this proposal and why? |
I don't support the Regional Council shirking responsibility for the position that they have placed the Port in. If they have created a level of debt that does not allow the Port to grow they need to be held responsible. Selling 49% of the shares will not do this as they will still have the ability to continue to make bad business decisions. |
Fred Victor Torea Submitter 60
What do you support about this proposal and why? |
I don't support this |
What don’t you support about this proposal and why? |
Everything rushing if making bad dicision |
Clayton Ewart Submitter 61
What do you support about this proposal and why? |
I don't support this proposal. |
What don’t you support about this proposal and why? |
Why because it belongs to the people of Hawkes Bay. Please here what we want we don't need this in our community. |
Korrin Torea Submitter 62
What do you support about this proposal and why? |
I don't support this at all Why sell What We Own |
What don’t you support about this proposal and why? |
that the CEO of Hbrr is not thinking why don't they sell what is in Wellington before selling the golden egg |
George de Barre Submitter 63
What do you support about this proposal and why? |
Port Not for Sale Keep it Hawkesbay |
What don’t you support about this proposal and why? |
once its Gone its Gone and we have NO Control |
Clinton Gotty Submitter 64
What do you support about this proposal and why? |
|
What don’t you support about this proposal and why? |
Our Ports Not For Sale. |
John Charles Merritt Submitter 65
What do you support about this proposal and why? |
DO NOT SUPPORT! |
What don’t you support about this proposal and why? |
Everything because Napier Port is not For Sale |
Trevor Miles Submitter 66
What do you support about this proposal and why? |
I DON'T SUPPORT IT |
What don’t you support about this proposal and why? |
EVERYTHING NAPIER PORT IS NOT FOR SALE |
John Brown Submitter 67
What do you support about this proposal and why? |
I DONT SUPPORT THIS PROPOSAL WE ALREADY OWN THE PORT. |
What don’t you support about this proposal and why? |
NAPIER PORT NOT FOR SALE. |
Hogan Green Submitter 68
What do you support about this proposal and why? |
I Dont support it |
What don’t you support about this proposal and why? |
everything NAPIER PORT IS NOT FOR SALE |
Matthew O'Neill Submitter 69
What do you support about this proposal and why? |
I Don't Support it |
What don’t you support about this proposal and why? |
Everything - Napier port is not for sale |
Bill Nicholls Submitter 70
What do you support about this proposal and why? |
I do not support this! |
What don’t you support about this proposal and why? |
(Everything) Napier Port is not for sale! |
Steve Dew Submitter 71
What do you support about this proposal and why? |
I do not support it |
What don’t you support about this proposal and why? |
Everything Napier port is not for Sale |
Jade Christison Submitter 72
What do you support about this proposal and why? |
I DON'T SUPPORT IT |
What don’t you support about this proposal and why? |
EVERYTHING NAPIER PORT IS NOT FOR SALE |
Ronnie Sharp Submitter 73
What do you support about this proposal and why? |
I do not support this |
What don’t you support about this proposal and why? |
Everything - Napier Port is Not for Sale |
James Caird Submitter 74
What do you support about this proposal and why? |
Nothing I don't support it |
What don’t you support about this proposal and why? |
Napier port is not for sale |
Jan & Mariet Vaessen Submitter 75
What do you support about this proposal and why? |
|
What don’t you support about this proposal and why? |
My wife and I are very concerned about the fact that Port directors are going to be directors and in control of the HoldCo. To us it is essential that we the rate payers have good representation in HoldCo to ensure our interests are served. The future of the port business and its activities should be balanced between the interest of the people who live in Napier (with especially Ahuriri coming to mind) and businesses interests. Good representation working for the rate payers is therefore very important. So please ensure that this happens. Napier counsellors and a member of Ahuriri community group ( Seascape comes to mind) on the board of HoldCo would be a good start |
Callum Wrightson Submitter 76
What do you support about this proposal and why? |
No |
What don’t you support about this proposal and why? |
Port Not for Sale |
Chris Jonasen Submitter 77
What do you support about this proposal and why? |
|
What don’t you support about this proposal and why? |
NAPIER PORT IS NOT FOR SALE. |
Fletcher Smith Submitter 78
What do you support about this proposal and why? |
- An effective way to potentially drum up a little cash for the new wharf. |
What don’t you support about this proposal and why? |
Very vague descriptions regarding the key
advantages vs the status quo. Need more solid, quantifiable information. |
Brian Price Submitter 79
What do you support about this proposal and why? |
Nothing Not enough information |
What don’t you support about this proposal and why? |
The port is not for sale |
Martin Leigh Gilkison Submitter 80
What do you support about this proposal and why? |
|
What don’t you support about this proposal and why? |
NAPIER PORT NOT FOR SALE |
Patrick Joseph Rewi Submitter 81
What do you support about this proposal and why? |
Nothing |
What don’t you support about this proposal and why? |
I dont support any type of sale of Napier Port. Rex Graham and his co-hort's need to leave Napier Port alone, if not they remembered as the men that sold Hawkes Bay out THE PORT IS NOT 4 SALE !!! |
Paul Malone Submitter 82
What do you support about this proposal and why? |
I DON'T NAPIER PORT IS NOT FOR SALE |
What don’t you support about this proposal and why? |
Job security, local employment, local revenue, shares going offshore, when you put submissions into all households it should've been only to the ratepayers as of cause a renter will say sell as they don't want there rent to go up because HBRC won't be getting such a big dividend from the port income which will be passed down to the rate payers but 100% ownership at $90 a year is stuff all in the long term |
Brent Grant Submitter 83
What do you support about this proposal and why? |
|
What don’t you support about this proposal and why? |
|
Paul Hamer Submitter 84
What do you support about this proposal and why? |
Nothing |
What don’t you support about this proposal and why? |
Napier Port is Not for sale |
Gene Michael Burling Submitter 85
What do you support about this proposal and why? |
|
What don’t you support about this proposal and why? |
The port is not for sale. |
Napoleon Eketone Submitter 86
What do you support about this proposal and why? |
|
What don’t you support about this proposal and why? |
The Port is Not for Sale |
Rapata Turner Submitter 87
What do you support about this proposal and why? |
|
What don’t you support about this proposal and why? |
Napier Port is not for sale |
Gerard Pain Submitter 88
What do you support about this proposal and why? |
|
What don’t you support about this proposal and why? |
I am not in favour of the formation of
HoldCo, for the following reasons: |