A public meeting in South Dunedin on Monday 12 July to support the campaign to build new trains for Auckland in New Zealand workshops attracted around 50 people.

The message they heard was that Dunedin people will have to stand up and fight to make this goal a reality, with this years local body elections and next years national elections providing an opportunity to apply political pressure.

Rail and Maritime Transport Union (RMTU) Hillside Branch Secretary Les Ingram, who works at Hillside, said an estimated 500 to 1200 extra jobs and nearly $500 million dollars in income were at stake.

“Dunedin cannot afford to let opportunities like this pass it by if we want to provide jobs for local people in the future.”

The RMTU were continuing their campaign and wanted to get across to the public how building rail units locally would provide a massive boost in jobs and income.

The Maritime Union of New Zealand (MUNZ) is supporting the RMTU campaign and MUNZ General Secretary Joe Fleetwood, visiting from Wellington, addressed the meeting on free trade issues.

He told the audience that they needed to get behind the Hillside workers campaign and demand that politicians listen.

He said the push for free trade policies was largely responsible for the situation where jobs were threatened due to unbalanced economic policies.

Both speakers agreed that the notion that New Zealand did not have the expertise to do the rail work was discredited nonsense.

Mr Ingram detailed previous work done at Hillside and his view was backed up by a retired engineer in the audience who recounted the many large scale projects other Dunedin firms have undertaken in the past.

The meeting was chaired by Victor Billot of the Alliance Party who said that highly skilled, high value jobs that would be created through building trains locally were exactly what was needed in New Zealand at the current time.

The approach of the National Government was reprehensible, he said.

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The Maritime Union of New Zealand (MUNZ) is backing calls by the Rail and Maritime Transport Union (RMTU) for the Government to step in to ensure new rail rolling stock for Auckland is made in New Zealand.

Maritime Union General Secretary Joe Fleetwood says the news of the failure of public owned KiwiRail to bid for the contract to build the electric units reflects badly on the Government.

“The decision by Kiwirail not to bid for the job shows a failure of leadership, at both the corporate level and at the Government level.”

Mr Fleetwood says the National Prime Minister John Key has recently claimed that unemployed workers need a “kick in the pants.”

“But since National came to office, tens of thousands of New Zealanders have lost their jobs, and now it appears National have sabotaged hundreds more high quality jobs for workers in a recession by failing to provide leadership and giving away work that can be done in New Zealand.”

Mr Fleetwood says that New Zealanders must continue to put pressure on the Government to deliver jobs and industry to New Zealand.

He says a study by economics consultancy BERL estimated last week that local construction of the electric units would add between 770 to 1270 additional jobs and $232 to $250 million to GDP.

The Maritime Union of New Zealand (MUNZ) and Rail and Maritime Transport Union (RMTU) recently formed a Strategic Union Alliance in the transport industry.

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Maritime Union of New Zealand General Secretary Joe Fleetwood says recent statements from Minister of Transport Stephen Joyce and retiring Pacifica Shipping Chief Executive Rod Grout on New Zealand ports and shipping show the need for immediate action in the maritime industry.

Mr Fleetwood says it is incorrect for the National Government to say they want market forces decide the future of the maritime industry, when massive taxpayer investment was directed at roads and rail.

He says that a “hands off” approach to the maritime industry means major market players would dominate the market and make decisions that could harm New Zealand’s transport infrastructure.

“The warning from Rod Grout that New Zealand cargo could end up being hubbed through Australian ports is a very real possibility, which would result in further loss of control of New Zealand exports and downgrading of our transport infrastructure.”

Mr Fleetwood says the Union is advocating a KiwiPort concept which would see co-ordination of ports at a national level, a level of investment by Government, and a planned approach to New Zealand’s transport needs.

He says an example of the much promoted “market forces” causing havoc are the moves by Fonterra to shift its products onto long distance rail rather than through local ports which had damaged the Port of Timaru in 2009.

“The path proposed by the current Government is to do nothing and let destructive parochial competition play out between our ports and a few self-interested big players.”

He says New Zealand has continued to be disadvantaged by its dependence on global shippers who controlled port trade.

“As a trading nation and a maritime island nation, it is irresponsible and short sighted to have no long term direction for our maritime transport industry set by the Government.”

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Over 100 local people attended a Timaru public meeting on the future of the port of Timaru on Thursday 17 September.

The meeting was called by the Maritime Union of New Zealand following a decision last month by Fonterra to stop exports from the port of Timaru, which has resulted in a massive loss of work for the port.

Maritime Union General Secretary Trevor Hanson says the meeting was a success.

He says there is a recognition that the port is a vital part of the local economy and cannot be allowed to fade away.

Speakers included representatives of the Maritime Union and the Rail and Maritime Transport Union, both of which represent port workers.

Other speakers included Labour Party transport spokesperson Darren Hughes MP.

Timaru District Mayor Janie Annear attended the meeting along with several local councillors. The Mayor contributed to the meeting as did Timaru Port Company CEO Jeremy Boys.

Audience members included workers, farmers and local businesspeople.

He says there was a unanimous support from the meeting for a motion from the local branch of the Maritime Union that pressed for the need to preserve local jobs and regional economic development and requested a meeting be set up between local representatives with the Minister of Transport and Fonterra.

A steering committee has been established with representatives from unions, business and local government to carry out these tasks.

Mr Hanson says one of the themes that came out of the meeting was concern about Fonterra’s actions and a sense that the Timaru district deserved a better deal for its considerable contribution to New Zealand’s exports.

He says that there is considerable goodwill in the community who understand the importance of the future of the port to Timaru.

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Today’s Timaru Herald features the Timaru public meeting this Thursday 17 September as their lead story.

Read the full story here.

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The Maritime Union of New Zealand is hosting a public meeting on the future of the Port of Timaru. The meeting will be held at the conference room at “Robbies” (Hibernian Hotel), Latter Street, Timaru on Thursday 17 September starting at 7.30pm sharp.

All concerned local people are invited to the meeting, including port workers, unions, business, industry, farmers, and all those concerned with the future of the port.

For more information see the Port of Timaru campaign website.

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Cartoon courtesy of the Shipping Gazette

The Maritime Union has stepped up its demand for answers as fallout continues from Fonterra’s dumping of regional ports in favour of long distance rail – and the influence that state subsidies to KiwiRail may have had on any deal.

KiwiRail has waded into the growing debate over the fate of regional ports, as the implications of Fonterra’s withdrawal from ports in New Plymouth and Timaru becomes apparent.

KiwiRail chief executive Jim Quinn was reported in the Taranaki Daily News (29 August 2009) saying any Government subsidy was irrelevant to the Fonterra deal but that KiwiRail did need the subsidy.

Maritime Union General Secretary Trevor Hanson says that the situation has obviously blown up in Fonterra’s face and it needed to be held to account.

He was not satisfied with KiwiRail’s answers and said “either they are being subsidized or not, and we believe there is more to this situation than regional communities are being told.”

Now the Maritime Union for public meetings to begin “active resistance” to the actions of Fonterra.

Mr Hanson says there should be immediate public meetings organized to bring together those affected by the decisions – ports, local councils, farmers, maritime workers, local businesses and all affected citizens, to demand some input into such decisions.

He says locals need to fight back against the destruction of these ports, and ultimately the damage to their regional communities.

The Union is also demanding answers from the Government as to how taxpayer funding of KiwiRail is being allowed to threaten the future of regional ports.

“The Government has the end responsibility here to step in for the national interest. To stand aside and let these heartland communities have their infrastructure and transport systems effectively demolished by a five hundred pound gorilla called Fonterra is showing that it either has no idea or the wrong idea.”

Mr Hanson says the both of these ports are capable of handling their local cargoes – without subsidies.

He says the money these ports have invested in infrastructure to handle Fonterra’s trade has effectively been flushed down the drain.

“The question needs to be answered – is the Government aware of any influence of subsidies on the price of the movement of cargo on rail hundreds of kilometres away from its regional catchment?”

“Both ports need to ask the Government to put Fonterra’s activities on hold until a true cost of their decision has been investigated.”

Mr Hanson says for some time there has been strong advocacy for the use of coastal vessels to move cargo out of the secondary regional “feeder” ports to major exporting “hub” ports.

He says this strategy has now been “blown out the water” without explanation or discussion in the industry.

Mr Hanson says Fonterra shipper Maersk needs to state its position as one of the largest shipping operators in the world.

“Maersk has described itself as a socially responsible company and will be very aware of the damage caused to regions and communities from Fonterra’s actions.”

“We have to wonder if Fonterra has other shipping options under study, and what effect this could have.”

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The Maritime Union has hit back at “socially irresponsible” Fonterra pulling out of regional ports and says the dairy giant’s profits are being subsidized by the taxpayer.

Maritime Union of New Zealand General Secretary Trevor Hanson says Fonterra has come out with “weak excuses” for its decision to pull out of some regional ports in favour of transporting products by long distance rail.

Mr Hanson says the future of the New Zealand transport industry seems to be in the hands of one man, Fonterra General Manager of Supply Chain Strategy Nigel Jones.

“Fonterra holds the fate of whole regional economies in their hands because of their size and influence, but seem to have no accountability to anyone but themselves.”

He says recent comments by Mr Jones to rural sector media confirmed Fonterra had no interest in working for a stable and secure regional economy.

“Mr Jones says his goal is to put more money in farmers pockets. Yet he has admitted the large public investment in rail has been behind the decision to dump ports. There has been no debate as to whether this vision is correct or dangerously wrong. Regional communities have been ignored.”

Mr Hanson says he does not believe the rates being paid by Fonterra to rail their goods are sustainable and are basically being propped up by the public.

He says there is a real danger if the rail plan fails, there would be a huge increase in container trucks on the road and regional ports would have disappeared.

Mr Hanson says the decision by Fonterra affects all the other producers who send goods through regional ports like Timaru and New Plymouth.

He says public investment in rail is a good thing, but only as part of an integrated transport system, and publicly owned rail should not be used to play off regions and transport modes against each other.

“It is common knowledge that ports such as Timaru and New Plymouth had planned and invested heavily in upgrading infrastructure to cater for Fonterra. Now they are left high and dry because of overnight decisions. There has been no consultation, no social responsibility and no recognition from Fonterra about the wider implications of their actions.”

“People in the regions are paying three times to subsidize Fonterra profits – they are paying for their regional ports to invest in infrastructure that is then made worthless, they are paying to upgrade rail infrastructure to carry Fonterra goods, and they are paying with their jobs and livelihoods when Fonterra makes overnight decisions to abandon regional ports.”

Mr Hanson says the “hands off” approach by Government to ports has led to a dysfunctional situation which was harming regional economies.

“We cannot have a company like this able to dictate terms to regional New Zealand and cause havoc in regional economies through arbitrary and irresponsible decisions.”

He says that the profits made by Fonterra and primary industries are not just created on the farm, they are created by an entire production and logistics chain that includes transport workers, ports and shipping.

“The actions of Fonterra have a massive impact on regional economies, and if they continue to make harmful decisions based entirely on their own short term interests, then regulation is the only answer.”

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The Maritime Union says regional ports have been hit hard because of a decision by Fonterra to rail goods to distant ports.

Maritime Union General Secretary Trevor Hanson says the moves have already led to notices of major redundancies in the port of Timaru, greater casualization of the workforce, and was threatening the viability of some ports.

“This issue cannot be dealt with by ports continuing to compete each other into the ground. It must be addressed by national co-ordination of our transport system, not the wasteful, insecure and chaotic mess we have at the moment.”

He says that Fonterra is running for cover on the issue and their explanations have not satisfied people in the regional ports affected by their recent decisions.

Mr Hanson says there are industry concerns that Fonterra may be getting extremely low rates to transport goods by rail.

He says while such a situation might suit Fonterra, regional ports and coastal shipping were being disadvantaged.

As rail was publicly owned, this could mean people and businesses in those communities would be effectively paying for work to be taken away from them.

Mr Hanson says it’s not a case of rail versus sea.

“The Maritime Union is a big supporter of rail being in public ownership, and public investment in rail, but it has to be part of an integrated transport system, not just another way for the big operators to play off ports and transport modes against each other.”

He says the Maritime Union supports the use of coastal shipping and rail working together, rather than the Government’s emphasis on “unsustainable, polluting and inefficient” heavy trucking.

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The Maritime Union’s comments on the effect on ports of decisions by Fonterra and shipping companies have featured widely in the news.

TVNZ reports that “the Maritime Union of New Zealand is calling for national co-ordination of port strategy, arguing that Fonterra is exerting such power as a customer it is effectively rationalising the port industry.”

The Taranaki Daily News writes that “Zealand’s waterfront workers and seafarers have savaged Fonterra’s decision to drop Port Taranaki, warning it has the potential to ‘rip the guts out’ of the port” following a “a bombshell decision last week, the dairy giant said it would be railing Whareroa product to Auckland and Tauranga instead.”

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