we value Our Contracting Division
Although part of the Company, our Contracting division operates independently. Undertaking the majority of work on our Marlborough electricity network, Marlborough Lines Contracting is essential to our operations. Not only does this division undertake capital expenditure and scheduled maintenance, it provides whatever resources are required for a rapid response in the event of major network outages caused by extreme events.
The Contracting division has a strong community presence. It offers an extensive range of electrical contracting services, performed by experienced staff who use modern equipment and cost effective methods. With its skilled workforce, the division provides a 24 hour maintenance service to both the Marlborough Lines network and individual electricity users.
Marlborough Lines Contracting is one of the few entities in New Zealand with three ISO quality systems accreditations – for management, environmental management, and health and safety. The Labour Department's Occupational Safety & Health branch has awarded the division ‘Achiever Status' for its health and safety initiatives. Contracting also has tertiary status with the Accident Compensation Corporation.
The division's service covers all aspects of electrical work including: overhead line construction and maintenance, designing overhead and underground power supplies, installing a variety of lighting, installing and jointing cabling, tree cutting and vegetation control, as well as live line work.
An arborist team of 10 staff has been set up within the Contracting division to ensure timely and cost effective control of vegetation on the network and to provide assistance for our customers.
Aside from carrying out work on the Marlborough Lines network, the Contracting division also has long term contracts for managing and maintaining generation assets for TrustPower, and it maintains street lighting for the Marlborough District Council. Additionally, our Contracting staff are sometimes deployed in other geographic areas to help restore power supply during storms and other events.
There is no shortage of work and the Contracting division has faced challenges in the recruitment and retention of qualified electrical staff. This has meant balancing the demand for private customer work with the maintenance and capital expenditure requirements of the network. Thus in the past year, 75% of the division's work was carried out for the Company to provide maximum customer benefit.
Despite the current shortage of skills in the electricity industry we are committed to expanding our Contracting operations in both regions. This year, four new line mechanics will complete qualification from Marlborough Lines' own training programmes and additional trainees have been recruited to provide succession.
Overall, the past year has been a good one for Marlborough Lines Contracting. For the year ended 31 March 2009, the division's total revenue was $16.124m, which compares with $18.541m for the previous year. The surplus prior to taxation was calculated at $2.258m compared to $1.648m the previous year. These results are on a margin-inclusive basis and include the work carried out on the Marlborough Lines network.
Marlborough Lines is also responsible for the management of the Otago based contracting company Otago Power Services, in which we have a 51% ownership stake. There have been numerous benefits from this ownership as it allows an interchange of staff and resources between the two companies to meet changing workloads and facilitate training. Otago Power Services Limited is a successful business in its own right, generating an after-tax profit of $0.897m for the year ended 31 March 2009.
Marlborough Lines Contracting currently has 92 staff and Otago Power Services has 80.
