Two Faces Over Queens Wharf

These are the two faces of Queens Wharf today. Murray McCully is a Government Minister and Minister of the Rugby World Cup. Mike Lee is Chairman of the ARC. The Government owns 50% of Queens Wharf, and so does the New Zealand Government. An unusual arrangement to say the least. This blog provides some information and background to that arrangement and the relationship. In Mike Lee's 26th April report to the ARC Mike wrote about the media conference where the picture was taken: "At the well attended media conference, hosted by the Minister for the Rugby World Cup Hon Murray McCully and myself, Mr McCully revealed plans for the government and ARC to build temporary ‘cruise terminal and entertainment facility’ in time for the Rugby World Cup. I stated that given the failure of leadership of the city’s mayors which meant a new cruise ship terminal was no longer feasible in the short term the ARC fully supported the government proposal which the government will pay for. Our preferred approach subject to consultation with the NZ Historic Places Trust is to dismantle the sheds and re-use salvageable materials in the permanent structure. Consultation will be undertaken in good faith not just on the future of the sheds but on all other historic features of the Wharf." The day before, Anzac Day, in his speech at the opening of Queens Wharf, Chairman Mike Lee ended with these words: "...today we begin a new chapter of Auckland's historical Queens Wharf - for nearly 100 years locked away - by opening it to the people once again. 2.75 hectares of superb public open space - close to the CBD and the Britomart Transport Centre - where people can come for passive recreation, to walk, to fish, to commune with the sea. Which we believe will enhance the quality of life for Aucklanders and our visitors. This is a legacy the ARC is beqeathing to the people of the region. The ARC trusts that the new Auckland Council, the new Super City will carry on our mission to redevelop the waterfront. But one thing we can be certain about - Queens Wharf as our 27th regional park if you will - will remain in the public ownership of the people of Auckland in perpetuity. My thanks once again to the government - to Prime Minister John Key and to Minister Murray McCully. My fellow Aucklanders - Queen's Wharf is now the Peoples Wharf." No mention of a cruise ship terminal in those words. Sounds like a park. If it was park any building - let alone 100 year old cargo shed heritage - would be guarded passionately. What is difficult to untangle in all these words is what is really happening. And what is rational and what is emotional. The whole Queens Wharf thing got legs to begin with when the PM spoke about "Party Central". He asked rhetorically, "where will everyone go to celebrate and have a good time when it's all on?" That was his question. At the time, Ports of Auckland were cash strapped, the stars aligned and the deal was done. But the deal has transmogrified and morphed as various other individuals and organisations have got their hooks into it. It has changed from Party Central to Primary Cruise Ship Terminal. How has this happened? Many ARC reports state opinions carrying the GUEDO signature. GUEDO is central government's office in Auckland. GUEDO stands for Government Urban and Economic Development Office. GUEDO is one of the organisations to have picked up Queens Wharf and turned it into an economic development project. An infrastructure project to promote and stimulate Auckland's economic growth and productivity. Somewhere along the way, after "the failure of leadership of the city’s mayors", the ARC decided to go it alone with the Government. The sequence of events leading to today began at a barely quorate meeting, just before Christmas, when the ARC voted: "In the absence of an agreement by Auckland City Council to progress and finance the development, the CEO investigate an exclusive partnership between the ARC and Government and report back to Council in January 2010." Then we had a wonderful summer in the sun. For a while. In January nothing happened. Nothing happened in February either, so I asked questions at a Council meeting where we were discussing the Annual Plan. A verbal update was provided to the effect that a Joint Venture was actually under way, and that it would be reported to a subsequent council meeting. Note here, that the December resolution called for the CEO to: "investigate an exclusive partnership". So then the ARC met in April 19th. That was the first Council meeting in 2010 where Queens Wharf and the Joint Venture was formally reported on the agenda. This was the meeting where ARC voted to approve: "the staged development of Queens Wharf to enable its use as a fan zone for Rugby World Cup 2011, and for the construction of the permanent cruise ship terminal to commence immediately after the 2011/12 cruise season", and to approve: "dismantling of sheds 10 and 11 on Queens Wharf". This latter decision was: "subject to the outcome of consultation with the Historic Places Trust". What is interesting about the attachments to the 19th April Council meeting report is that they include a signed Joint Venture Agreement between the ARC and the Government. This was the first sighting of this document by ARC Councillors. It had gone much further than "investigation". The Joint Venture Agreement was dated 26th March 2010. It was signed by ARC Chairman Mike Lee "for and on behalf of Auckland Regional Council", and by Murray McCully "for and on behalf of Her Majesty the Queen in right of New Zealand acting by and through Hon Murray McCully, Minister for the Rugby World Cup", and also by Gerry Brownlee in his capacity as Minister of Economic Development. "The purposes of the Joint Venture are: General: To hold and operate Queens Wharf and manage the development of it, for the benefit of the public; Specific: To manage the development of: i) an infrastructure legacy site for major events (commencing with the Rugby World Cup 2011) that presents an impressive image of the Auckland region and New Zealand as a whole; ii) a high quality cruise ship terminal facility that will provide economic benefits to the Auckland region and New Zealand as a whole; and iii) an impressive public open space that reflects New Zealand's culture and heritage...." The problem with this wishlist is the classic one of not being able to have your cake and eat it. You can't have the kind of cruise ship terminal that GUEDO wants on Queens Wharf - that is Auckland's Primary Cruise Ship Terminal - that supports Cruise Origination and Termination - and have the kind of open space described in these purposes. The uses are in conflict and there is not enough room. And it is ironic that the purpose speaks of a space that "reflects ... culture and heritage", but has in mind a space that is devoid of heritage buildings. The Queens Wharf Joint venture Agreement contains the sort of detail that might be expected in such a document, including the establishment of an Owners Committee which is quorate if the Minister of the Rugby World Cup and the the Chairman of the ARC are present. It is concerning to note however, that the agreement states that: "The decisions of the Owners Committee are binding on the parties. The parties must take all reasonable steps to give effect to those decisions. If a party cannot give effect to a decision after taking all reasonable steps, the matter must be referred back to the Owners Committee for reconsideration." The agreement goes on to provide for the existence of a Management Committee, whose first big job is the preparation of an Approved Business Plan", which must be prepared "at least 2 months prior to the end of each financial year". The Agreement defines that date as 30 June "unless otherwise determined by the Owners Committee". So where does that leave us all? Hard to say really. The ARC has not been asked to agree or endorse the Queens Wharf Joint Venture Agreement which has been signed on its behalf by its Chairman. The ARC has not been provided with a copy of the Approved Business Plan which should have been prepared a month ago. And which is important because the Agreement requires the ARC to: "take all reasonable steps to give effect to those decisions..." What has the ARC agreed to do on Queens Wharf? Be nice to know. It feels a bit like Government has found a way to control Auckland. And what if there's a dispute? Imagine that the ARC is being faced with staunch arguments from the Historic Places Trust in its consultation. Imagine that the ARC is under pressure to adaptively re-use the Sheds that are on Queens Wharf. A lot of pressure. How will that pressure affect the Minister for the Rugby World Cup? What are his obligations to understand the ARC's obligations? Interestingly, the Queens Wharf Joint Venture Agreement does have a tiny bit of light at the end of its rather dark tunnel. It says: "Any agreement entered into by the Joint Venture with a third party must not place a party in breach of any legislation applicable to it, including.... in the case of the ARC, the Local Government Act 2002." Thank goodness for that. But what if the parties agree something among themselves that has that effect? What if the ARC - aware of the deal its has signed up to with Government and the decisions that make up that deal - in its determination to "take all reasonable steps to give effect to those decisions", steps just a wee bit over the line. Like skimping on its public duties to consult over things like: Cargo Shed removal; deciding the temporary slug/tent replacement; providing Queens Wharf Development budgets; changing Auckland's cruise ship terminal locations and functions. And the word "skimping" is charitable. What then?