Sunday, April 1, 2012

Loss of Stakeholder Value and Damaging The Brand


The port dispute is estimated to have cost thirty five million dollars to Auckland which is an indirect cost on rate payers. A far greater cost maybe for  Auckland brand, and if no settlement is reached between the port company and the wharfies we can expect to pay compound interest .
The lifting of the  lockout notice by the port company has reduced the impact on business and owning a small business. This is good news.
Liam Dann in the Weekend Herald poses the question,  ‘Whose Side Are You On?’  in reaction to the board’s internal divisions. This question also applies  to the board.
Most of the disruption is a direct result of their decision to contract their workforce out which they told us  was legal. However, the employment court does  not agree.  Whose side are they on, is a reasonable question? Are they working for Auckland? 
Given that this exercise to date, has achieved so much  loss in stakeholder value  and  has damaged our international brand, they may win
an award for their achievements .
Working and investing  in tourism, we understand how important the brand is and how perception  alone can quickly do so much damage.  In the interest of Auckland it behoves on all parties to achieve a durable settlement which will last into the future The next move  for Auckland and New Zealand is a regional port and transport strategy, that involves Marsden Point and Tauranga.