Public Trust - Annual Report 2011 - Crown Ownership Monitoring Unit

Public Trust has 85 employees in Christchurch, around aquarter of our customer servicing people, at our NationalContact, Southern Service and Customer Centres. Followingthe earthquakes our first priority has been for the safety andwellbeing of our employees. Given the damage caused bythe earthquakes and, specifically sustained to our places ofbusiness, we are most thankful that all of our people andtheir families have remained safe.The quick establishment of our incident response team and theireffective implementation of our business continuity plan, helpedmaintain a high level of customer service. Phones were divertedwithin an hour of each event to temporary centres. Plans wereestablished to support services from other Public Trust centresaround the country. Alternative arrangements were put inplace for our Christchurch teams as they became availablefor work again.Rebuilding our Christchurch operationsRestoring full services levels, with the continued disruption fromaftershocks, has been challenging. Our three centres maintainedvarying levels of damage in September 2010. After the February2011 earthquake all premises sustained significant furtherdamage, and were unable to be used.Even though suitable low rise, central premises were at a premium,Public Trust made a recommitment to the region within a weekof the February earthquake securing three alternate premisesin excellent locations. These were leased, designed and thenfitted out extremely quickly, with each site opening for businessin May 2011.Ongoing ChallengesUnfortunately the earthquake of 13 June 2011 damaged our newCustomer Centre in Riccarton. While the necessary remedialwork is being completed, our Customer Centre services are beingprovided out of new National Contact Centre in Hornby andSouthern Service Centre in Addington. We expect to return toRiccarton in early October 2011.Public Trust responded effectively to the initial disasters andmoved rapidly to recover business operations. Despite PublicTrust’s swift response, the disruption to our business has beensignificant as we diverted resources from other parts of ourbusiness to support Christchurch.We are very appreciative of the way our people in Christchurch,and throughout New Zealand, have supported our customers andplayed lead roles in re-establishing our operations in the city.Financial impact of the Canterbury Earthquake2010/11$m2009/10$mReported Net Surplus After Tax 0.6 4.8Impact of EarthquakeEstimated Revenue Loss 1.1 -Additional Operating Expenditure Incurred 1.9 -Sub-Total 3.6 4.8Insurance Recoveries Recognised in 2010/11 (1.3) -Net Surplus After Tax excludingthe Impact of the Earthquake 2.3 4.8The Canterbury earthquakes, in particular the earthquake of22 February, had a significant impact on the 2010/11 financialperformance of Public Trust.All three Public Trust offices were extensively damaged on 22February. This damage, combined with considerable disruptionto the property and routines of our people, resulted in reduced feerevenue in the subsequent months. Customer-servicing duties andresponsibilities were transferred to other Public Trust sites where itwas possible to do so, however the estimated lost revenue over thisperiod was $1.1 million.Recovery from the earthquakes has been a substantial undertakingand has required a large number of resources. The costs associatedwith the recovery totalled $1.9 million and include asset write-offsfrom damaged premises. Incurring these costs has ensured thatPublic Trust’s Christchurch operations have returned to nearfull capacity as early as possible while remaining mindful of thecircumstances of our people.Insurance cover will ensure that the overall financial impact of theearthquakes on Public Trust is softened. Insurance recoveries willassist in offsetting both operating and capital expenditure whichwere incurred as a result of the earthquakes. Insurance recoveriesrecognised in the 2010/11 result totalled $1.3 million, whilefurther recoveries will be recognised in the 2011/12 financial yearas costs are finalised.After removing all the identifiable financial impacts of theCanterbury earthquakes, the 2010/11 result for Public Trust is aNet Surplus After Tax of $2.3 million (2009/10: $4.8 million).17B9