Mark Cairns and our port

Simon Bridges
National Party MP
simonbridges.co.nz

A couple of weeks back I spoke at outgoing Port of Tauranga chief executive Mark Cairns' leaving function.

After 15 years at the helm, Mark leaves at the end of this month. He's become a good friend of mine over this time; after all, we've had significant roles in our city's running and future.

I said at the event that Mark's been a great leader of our port. Over his time every metric of our port has grown considerably as Mark has led on complex issues, including dredging the harbour, expansion and a fraught global shipping scene.

Unquestionably, our port is the largest and most efficient in our country today, and one of the most successful companies on our stock market.

More than that though, the success and growth of our port has enabled the success and growth of Tauranga, the wider region and New Zealand. If we take kiwifruit, our region's biggest sector, nearly all of it goes out from our port - close proximity and incredible efficiency means many more dollars go into our local economy, and hundreds more examples could be used.

What's also important is, in addition to being part-owned by private shareholders, our port is half-owned by Bay of Plenty Regional Council. This has seen many hundreds of millions come back to us all in dividends since Mark has been CE.

Additionally, the port shows that mixed public-private ownership (the MOM as some say) works exceptionally well. It ensures there are commercial disciplines that come from a listed company alongside the public benefits of dividends flowing to the community.

Bay of Plenty Regional Council owns the shares through its investment arm, Quayside Holdings, but, as I also said on the evening, ultimately the port's success has required councillors who're wise enough to be hands-off and not meddle in success.

This has been the case to date, but it's important we aren't complacent. Frankly, an unwise regional council could quickly destroy value and opportunity for both the port and our region's economy.

This leads to a couple of other points. First, some think central government needs to stick its oar in and decide how ports around New Zealand work. I say no way!

A natural - and rational - hierarchy emerges if you let the market sort it out. To date, this has seen Tauranga winning out against less competitive ports which have politicians meddling in their affairs.

Last but not least, let's think a little about history. When I first became MP I reckon most who lived here understood the great value of the port to our region. Today, regrettably, more and more do not.

I don't think the port should get a free pass on important matters like our local environment, but I do think we must appreciate what we've got, and its criticality to our success - just as the port must continue investing in its social licence.

I wish Mark all the best following his leadership of the port, and welcome new CE Leonard Sampson and wish him a tenure every bit as good as his predecessor's.