A new and brighter future for Wanganui's harbour and port

The clarification of contradictory ownership responsibilities

The freeing up of harbour owned assets for the wider use of Wanganui and the community

The termination of the perpetual lease between the Wanganui District Council and River City Port Ltd

The start of a new council/iwi relationship that has the potential to attract millions of dollars of new investment to the current facility

The gifting of council-owned land designated as 'culturally significant' to local iwi

The creation of a new governance structure at the port comprising of four council-appointed directors and two iwi-appointed directors, with all directors required to have relevant commercial experience.

Those are the highlights of a Wanganui District Council local parliamentary bill, and an historic memorandum of understanding reached between Whanganui iwi representatives, and formally signed at the Council Chambers today.

Along with the announcement by the Wanganui District Council that it had achieved in principle support from the government for a local bill that will end the "Gordian knot" of conflicting and contradictory ownership and operational responsibilities associated with the Wanganui port.

"My council's intent is that Wanganui's port again becomes a significant economic player in our district and region. We are, in essence, taking back ownership of the existing port and structure - and proposing to compensate the current lessee, River City Port Ltd."

The local bill will be introduced into parliament by Whanganui MP Chester Borrows and has the in principle support of both the National and Maori parties.

"We are aiming to get a general unanimity from Parliament but we first needed to be sure that the numbers were there to make this bill a political reality."

Mayor Laws said that despite the public disagreement with local iwi over the 'h' issue, "both parties recognise that we both want the same thing: a prosperous Wanganui with a growing economy, new jobs and the potential to attract new investment."

"Until now, the port and port structures have been rusting away and economic opportunity with it. Council has taken a hands off view for over 20 years, and hoped that the private sector would find a way - or the money - to make things happen.

"Well, it hasn't. Indeed new economic and commercial opportunities are actually being actively frustrated by the labyrinthian ownership and lease arrangements. No negotiated settlement has been possible.

"It will also free up harbour assets in town for the benefit and development of the wider community."

Mayor Laws said that local government re-organisation in the late 1980s abolished the Wanganui Harbour Board and placed its assets and responsibility with the new Wanganui District Council. The council of that time entered into a 99-year lease arrangement with the major port users who formed a new company, Ocean Terminals Ltd. In early 2004, and not requiring council approval, Ocean Terminals sold the lease to River City Port Ltd for an estimated $1 million.

Since that time development at the port had become mired in legal and contractual wrangles and port users were being frustrated from future development by that wrangle.

The Seabed & Foreshore Act (2004) had further confused the situation by seemingly making the government the new owner of harbour land and structures.

"This local bill sorts out ownership issues once and for all. There seems a view by all port users and adjacent business owners that they would prefer council ownership. Certainly, it is our asset and we are taking a direct responsibility for it.

"We see the port and harbour as critical to Wanganui's future economic development. Today's decision and signing marks a very special and exciting day for Wanganui's future."