./=SOUTH PORT NEW ZEALAND LI V1

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./=SOUTH PORT NEW ZEALAND LI V1 11 September 2013 ED AT 17 SEP 2013 MEETING Mr R King Chief Executive Invercargill City Council Private Bag 90104 Invercargill 9840 Dear Richard Report provided for inclusion at the full Council Meeting on Tuesday, 17 September 2013 Following our meeting on Wednesday, 4 September, I now provide a more balanced and factual description of the South Port wharf structures referred to in Mayor Tim Shadbolt's Supplementary Report to Council on the meeting held 27 August 2013. Attached as appendices are: 1. Mayor's Supplementary Report 2. Map outlining total South Port infrastructure and operating environment 3. Comparative photos taken by South Port personnel You conveyed at our meeting that the photos used in the Mayor's Supplementary Report were generated by a former ICC staff person. It is apparent that these photos have been deliberately taken at certain angles and reflected as grey scale images to portray a poor impression of the infrastructure. In addition, some of the structures shown are not even under the ownership or direct management of South Port (Bluff Yacht Club and Downer pipe images) plus show material/rubbish associated with South Port fishing berth tenants. A prime example of the mis representation attempted by the report is located on page 10 of the comparative photos (Appendix 3). This page shows in the top image material located under a loading platform of a leased fishing shed. The loading platform is clearly depicted at the front of the shed in the lower image on the page demonstrating the trouble the photographer has gone to stage manage the "disgusting filthy state of South Port" and "squalor" referred to in Mayor's Supplementary Report. For the Council's information, South Port's total infrastructural assets are shown on the map at Appendix 2. Note the relative area of South Port's main operational asset, the 40 ha Island Harbour, compared to the partly used Town Wharf location (tanker berth 11 is operational). Photo images appearing in the Mayor's Supplementary Report relate to the areas referenced as A and B (A = Bluff Yacht Club Ramp and B = West end of Town Wharf). 9 I S L A N D HARBOUR, P0 BOX 1, BLUFF 9842, NEW ZEALAND SouthIandT LISTED PHONE +643 212 8159, FAX +64 3 212 8685, EMAIL reception@southport.co.nz www.southport.co.nz

I have already pointed out that any structures in area A are not owned by South Port while the location shown in black diagonal lines in Area B of the Town Wharf is no longer used for cargo transfer purposes. The south aspect of shaded area B is provided to several fishing vessels for berthing and the ICC photo on page 8 of Appendix 3 depicts equipment used by these fishing operators. What can be factually stated about the west end of the Town Wharf is that it: No longer serves a commercial function for cargo transfer Has been appropriately maintained to ensure that both safe access and recreational fishing are achievable Would cost several million dollars to demolish this area of wharf structure Would require an extensive and expensive RMA process to re establish an equivalent structure at some point in the future (should this be deemed necessary) leaving a maintained structure in place protects access and future potential use of the area. In summary, South Port takes seriously its responsibility to maintain all of the assets under its direct control. However, the level of maintenance applied to various assets is influenced by the commercial use of those assets, plus any Health & Safety implications. South Port spends in excess of $1.3m annually on maintaining its wharves (excluding any capital expenditure). In relation to this R&M spend, $146,000 was outlaid on the Town Wharf in the last financial year, $280,000 in the previous year and a budgeted amount of $170,000 has been provided for the current year. I would welcome the opportunity to provide the ICC Councillors with a personally escorted tour of the port infrastructure at any time and would caution against placing any reliance on Geoff Piercy's comments or the carefully constructed photo images previously provided. Of interest is Mr Piercy's reference to "the old main wharf not reflecting a progressive port authority". What Mr Piercy has failed to come to terms with is that the former Southland Harbour Board (which was a Port Authority) ceased to exist in the late 1980's. South Port is an NZX listed corporate entity which is governed under a primary objective set out in the Port Companies Act, that objective being "to operate as a successful business". Business success is now measured not only in financial terms but also includes social and environmental obligations. I am satisfied that the maintenance of our wharf assets is consistent with this wider interpretation of our statutory objective. Yours sincerely, ) ) MARK O'çONN Chief Executive

TO: FROM: COUNCIL SUPPLEMENTARY HIS WORSHIP THE MAYOR APPENDIX I BLED ATI 27AU62013 T 1 MEETING DATE: 27 AUGUST 2013 MAYOR'S REPORT Report Prepared by: His Worship The Mayor, Mr T Shadbolt SUMMARY RECOMMENDATIONS That the report be received. IMPLICATIONS 1. Has this been provided for in the Long Term Plan/Annual Plan? N/A 2. Is a budget amendment required? N/A 3. Is this matter significant in terms of Council's Policy on Significance? N/A 4. Implications in terms of other Council Strategic Documents or Council Policy? N/A 5. Have the views of affected or interested persons been obtained and is any further public consultation required? N/A FINANCIAL IMPLICATIONS N/A CLEAN Up AT BLUFF AND OMAU It was inspiring to see so many people turn out for a clean up of the Bluff and Omaui foreshores. Although a skip full of rubbish was picked up around Bluff, there was nothing we could do with the disgusting, filthy state of Southport. Members of Environment Southland should hang their heads in shame at the sight of this squalor. Geoff Piercy recently wrote about his attempts to clean it up when serving as a council representative on the Bluff Community Board:

"I served as a city council appointee to the Bluff Community Board for 12 years and often complained about the state of the wharves, particularly the east end of the ferry wharf and the image given to tourists as they passed going to and from Stewart Island. / recently visited the old main wharf, and while part has been re decked it certainly didn't reflect a progressive port authority. It needs a good clean up of weeds and rubbish because, after all, this is the only wharf with public access. As for the ferry wharf there are two options: either do it up or demolish the part not in use." Southland Express, Thursday August 22 2013, Senior Moments by Geoff Piercy

INNER CITY UPGRADE I received a petition with over 1000 signatures from Mr Neil Thomas and there have been several requests to speak on the subject at the public forum. I have also received an email from Mr Andy Wood regarding No 10 Deveron Street, and there have been letters to the editor and several emails sent to the Council on this subject. ** * * *

C flsyncrqljp7. N LO( I1T I I I, / 0 200m BLUFF

APPENDIX 3 3/09/2013

3/09/2013

Real Journeys Wharf ICC Photo 3/09/2013

3/09/2013

Bluff Yacht Boat Ramp 3/09/2013

Town Wharf Access ICC photo 3/09/2013

3/09/2013

3/09/2013

3/09/2013 Town Wharf Fish Berths Access,. 9

3/09/2013 farf NhShed 10

3/09/2013 Town Wharf Fl erth Loading Platform J 11