Chairman and mayor trade blows over port

By Chris Hutching

Friday 18th October 2002

Beleaguered Lyttelton Port co-chairman Brent Layton went on the attack yesterday against Christchurch mayor Gary Moore, accusing him of undermining the company's bargaining with waterside unions.

Mr Layton was told to hand in his resignation by the major shareholder, municipal-owned Christchurch City Holdings, but he said he would not go without a fuss and accused Mr Moore of talking with unions without company agreement or representation.

The industrial scrap between the port company management and the unions has simmered for more than two years. Inflexible labour practices are partly to blame for recent loss of container business at the port, causing the company share price to fall from $1.90 recently to $1.45 yesterday.

Christchurch City Holdings chairman Paddy Austin said yesterday Mr Moore was acting as mayor and not a representative of Christchurch City Holdings where he is also a director. She is giving Dr Layton a little more time to consider his position but said she would sack him at a special general meeting as soon as possible if he refuses to go.

"Outside Christchurch City Holdings' boardroom there may have been a power struggle [between Messrs Moore and Layton] but the board was unanimous about this and it comes also as a result of concern about deteriorating relationships between the port company and several stakeholder groups including suppliers, customers and the local community, not just the unions."

She said the position of managing director David Viles was different because he was an employee of Lyttelton Port, but the relationship was at board level and therefore with the chairman.

Ms Austin reiterated her support for the port company's bargaining position and said Christchurch City Holdings would support any measures necessary, even to the extent of subcontracting out some port operations as the port company has already threatened.

Meanwhile, Dr Layton said performance of the port under his leadership was not the issue because the company had posted a record profit, record dividends and record cargo volumes this year.

He said on Tuesday that the company achieved a new arrangement that would favour the port for some services, although unfortunately not the new super container service. An agreement with the unions was also close.

He accepted he would have to go but said he would resign at a point when his protests became a counter-productive distraction. "The key reason for asking for my resignation is lobbying of Christchurch city interests by unions and their supporters," Dr Layton said.

"A couple of months ago threats of personal violence were made against me and some members of senior management of such a nature that security personnel have been engaged to protect us. This time the attack has been through Christchurch city's shareholding."

The annual report reveals that Mr Layton receives director's fees of $38,425. He is also one of the top 20 shareholders. He holds other directorships including one on the Reserve Bank. Managing director David Viles received total remuneration in the year to June 2002 of $273,796.

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