Auckland Council’s CCO structure approved by Cabinet

The final structure of Auckland’s council controlled organisations was agreed to by Cabinet yesterday, says Minister of Local Government Rodney Hide.

Cabinet has endorsed the Auckland Transition Agency’s recommendations to have a structure made up of seven substantive council controlled organisations (CCOs), with oversight provided by a committee of the Auckland Council.

The seven substantive council controlled organisations will include a statutory entity, Auckland Transport, and the existing water entity, Watercare.

The others are:

Auckland Council Investments Ltd (ACIL)

ACIL is being established to bring a strong commercial focus to the ownership and governance of the Auckland Council’s major investment assets and provide an efficient structure for the ownership of the assets. The establishment of ACIL will consolidate existing equity investments and will achieve a consistent approach to investment portfolio management across the Auckland Council. ACIL will own and manage assets transferred from existing councils and CCOs.

Auckland Tourism, Events and Economic Development Ltd (TEED)

This CCO will be established to help lift the Auckland region's economic well-being, and to support and enhance the ability of the Auckland region to compete internationally. TEED will rationalise and consolidate existing councils events and economic development activities across the region into one CCO to achieve a consistent approach to economic development, tourism and events promotion.

Regional Facilities Auckland (RFA)

The RFA will provide a regional perspective to the development of Auckland’s arts, culture and heritage, leisure, sport and entertainment venues. The RFA will integrate relevant council business units to achieve a consistent approach to the management of regional facilities across the Auckland region. A number of other related entities will become aligned with, but not be fully integrated into the RFA.

Auckland Council Property Ltd (ACPL)

The establishment of ACPL will consolidate existing property management and development CCOs, provide a consistent approach to commercial property management across the Auckland Council property portfolio, and ensure an appropriate return on Auckland Council owned commercial property.

Auckland Waterfront Development Agency (AWDA)

The AWDA will lead a strategic approach to development across the waterfront consistent with the Auckland Council’s vision. The AWDA will consolidate existing waterfront related entities into a single CCO with a clear focus on the ongoing development of the waterfront and the completion of the existing projects associated with the Rugby World Cup 2011.

The consolidation of assets and services of existing Auckland councils and CCOs into these new organisations will now begin through a process of Orders in Council:

• directing the establishment of the new CCOs;
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• setting out their objectives and board structure; and
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• transferring assets to them from existing councils and 14 current CCOs that are being disestablished.
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These council controlled organisations will be subject to the enhanced accountability and transparency requirements in the Local Government (Auckland Council) Act 2009.

“Auckland Council’s CCOs will be the most accountable of any in the country. The Auckland Council will determine their Statements of Intent, and can dismiss directors or disestablish the CCO entirely if the Councils wishes are not carried out,” Hon Hide said.

This provision excludes Auckland Transport, the only statutory entity, and Watercare, which will take on full CCO status in 2015.

All council controlled organisations are also required to have a minimum of two board meetings a year open to public scrutiny and participation.

Cabinet also agreed to regulations confirming its earlier decision on the mayoral spending limit for the Auckland Council election, and that the upcoming elections should occur as if the Auckland Council is already in place.

Unfortunately, drafting of recent Auckland Governance legislation did not give full effect to the original Cabinet decision, and the regulations agreed to yesterday rectify this.

“Once the new CCO chief executives and directors have been appointed, we only have to wait for the October election and the new Auckland Council will be up and running under a single Council and mayor, working to help Auckland reach its potential,” Hon Hide said.

ENDS

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