Scoop has an Ethical Paywall
Licence needed for work use Learn More

Local Govt | National News Video | Parliament Headlines | Politics Headlines | Search

 

Council-Controlled Organisations Discussion Doc

MEDIA RELEASE
1 March 2010

Council-Controlled Organisations of the Auckland Council – Discussion Document

A discussion document containing detail on the roles and accountabilities of proposed council-controlled organisations (CCOs) of the Auckland Council has been released today (Monday) for feedback.

The document, released by the Auckland Transition Agency (ATA), considers the structure of five Auckland Council subsidiaries that were approved in principle by Cabinet last year. These are:
• Council Investments
• Economic Development, Tourism and Events
• Major Regional Facilities
• Property Holdings
• Waterfront Development Agency

These entities will be owned by, and report to, the new Auckland Council.

The discussion document – available at www.discussiondocuments.co.nz – outlines the accountability mechanisms which exist between the council and its CCOs. Specifically, each CCO must:
• Give effect to the Auckland Council’s Spatial Plan and other plans
• Have its Statement of Intent (SOI) agreed by the council and made public
• Report regularly to the Auckland Council, with an audit by the Auditor-General
• Have its performance monitored by the council’s Governance and Monitoring Unit

Additionally, CCOs are subject to the access to information provisions of the Local Government Official Information and Meetings Act 1987 and the Ombudsman Act 1975. The Auckland Council will appoint CCO board members (after the initial boards have been appointed by Ministers) and the council has the power to remove board members.

Advertisement - scroll to continue reading

The ATA is recommending that CCOs must take account of the views expressed by local boards as a requirement of the SOI approved by the Auckland Council.

There are currently around 40 CCOs operating under existing local authorities in Auckland. Under the new Auckland Council it is planned to rationalise and streamline these.

ATA advisor John Dragicevich said: “It will be the Auckland Council, in conjunction with the community, that sets the objectives and accounts to the ratepayers for the performance of these CCOs. They exist under the democratic process and the ultimate accountability of the elected council to the ratepayers.”

The discussion document invites feedback on the structure and responsibilities of the CCOs, their accountability and governance arrangements, and the assets and activities associated with individual entities.

Feedback can be submitted online at www.discussiondocuments.co.nz or in writing to Auckland Council CCO Feedback, Auckland Transition Agency, PO Box 99394, Newmarket 1149, Auckland.

The deadline for feedback is March 26, 2010.

The ATA will analyse feedback before making its final recommendations to Cabinet.

Ends

Feedback on discussion documents on local boards and council-controlled organisations (CCOs) of the Auckland Council are available at www.discussiondocuments.co.nz

ata021_CCO_Discussion_Document_10.pdf

QUESTIONS AND ANSWERS

What is the purpose of the discussion document?

The discussion document:
• provides background information on council-controlled organisations (CCOs) and their structure
• outlines the ATA’s proposals for the rationalisation of CCOs in the region
• looks at how the Auckland Council, including local boards, and CCOs would formally interact with each other to ensure public transparency and accountability
• seeks feedback on these and other matters.


What is a CCO?

A council-controlled organisation (CCO) is a company or organisation in which the Auckland Council will control at least 50% of the votes on the board or appoint at least half of its directors (or trustees). CCOs exist under the democratic process and the ultimate accountability of the elected council to the ratepayers. It is the council, in conjunction with the community, that sets the objectives and accounts to the ratepayers for the performance of the CCO.


Is the proposal to create more of them?

No – the proposal is to rationalise CCOs in the wider Auckland area. There are currently some 40 CCOs across the region. Under the new Auckland Council, the following CCOs are provided for in legislation or approved by Cabinet:

• Auckland Transport (provided for in legislation)
• Watercare Services Ltd (provided for in legislation)
• Waterfront Development Agency (approved by Cabinet)

The following CCOs are approved in principle by Cabinet:
• Council investments
• Economic development, tourism and events
• Major regional facilities
• Property holdings


Why have CCOs?

The Royal Commission on Auckland Governance identified several benefits of placing certain activities in council-controlled organisations (CCOs) including: achieving operating efficiencies, tax and financial benefits and empowering local communities – eg, by creating a trust with a set budget funded by a council but managed by a community for a specific purpose.

CCOs are a model for introducing, through board appointments, commercial disciplines and specialist expertise. Economies of scale can be achieved by aggregating similar activities of various local councils into one regional CCO. Depending on the individual CCO, there are also opportunities to streamline bureaucracy, attract commercial sponsorship and recruit and retain specialist staff where required.

Specific benefits attached to each of the CCOs are described in the discussion document.

How will their activities be controlled or managed?
In Auckland the overall direction for CCOs will be set by the governing body of the Auckland Council within the Long Term Council Community Plan (LTCCP). This integrates local board plans and, where applicable, Government policy statements.
The Statements of Intent (SOI) for CCOs must give effect to the council’s Spatial Plan and other strategic documents prepared as part of the council’s annual planning process. When an SOI is agreed between the council and the CCO it is approved by the council under the Local Government Act 2002. The SOI publicly states the activities and intentions of the CCO for the year and the objectives to which these activities will contribute. In addition to negotiating and complying with its SOI, the CCOs are required to prepare regular reports for the councils. A statement of service performance comparing actual performance against the SOI will be audited by the Auditor General.


How are board members appointed?
The Third Bill provides for the initial boards of CCOs to be appointed by the relevant Minister(s) following recommendations by the ATA. After that, board members will be appointed by the Auckland Council.

Can the Auckland Council change members of the board?

Yes. Board members will be appointed for staggered terms. Council can reappoint board members or replace them. There is a wider power to remove board members at any time for good reason.

Will councillors be eligible to be board members?

Generally, no. The Auckland Council will appoint board members but these will not include councillors. The exception to this is at Auckland Transport, where Cabinet has decided that up to two councillors can sit on the board to provide a strong link between the funding and provision roles.

What is the role of the Council Committee?

The Committee will have oversight of the CCOs including SOIs, performance monitoring and making director appointments. It may make recommendations to the council governing body in accordance with its delegations. The Council Committee will also appoint a three to four-member advisory board.

What is the role of the advisory board?

The advisory board is appointed by the Council Committee to provide governance advice on SOIs, recommending directors and reviewing performance. Its members will be appointed by the council committee for their particular expertise and experience.

© Scoop Media

Advertisement - scroll to continue reading
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

 
 
 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

Featured News Channels


 
 
 
 

Join Our Free Newsletter

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.