Mayor Wayne Brown has released his Draft Mayoral Proposal for Auckland Council’s Annual Plan 2025-26, confirming his intention to make the significant changes to council-controlled organisations (CCOs) that he campaigned on in 2022.

The draft proposal sets out the mayor’s plan to address long-standing issues with the CCO model. These include a lack of democratic accountability, inefficient decision-making, and wasteful spending.

“I was clear when I ran for mayor that I would take back control of council organisations and make them democratically accountable. Aucklanders voted for CCO reform, and they expect us to get on with the job,” Mayor Brown said.

“I know this is an uncertain time for people employed by our CCOs. The proposal I outline today is not intended as a reflection on their work. Rather, this is about improving the way Auckland Council works for the people.

“We need to make structural and cultural change to remove inefficiencies, poorly aligned strategies and strengthen democratic accountability.

“Doing so will improve public trust and confidence, cost-effectiveness and overcome the duplication of services currently funded by the ratepayer.”

CCOs absorb over half of Auckland Council’s current annual operating budget of around $6.4 billion and control two-thirds of the region’s publicly owned assets valued at almost $47 billion, and are funded in part by 40 per cent of total rates.

The draft proposal includes significant changes to three of the five substantive CCOs to provide greater control of council spending and improve service delivery. Watercare is outside the scope of these changes.

“To be clear, I am not proposing any funding or service cuts. These structural changes are intended to make council services more responsive to the public by bringing decisions closer to elected members,” Mayor Brown said.

Eke Panuku Development Auckland

Mayor Brown’s proposal includes bringing urban regeneration and property management back in-house under council control, to ensure better alignment and integration with other growth-related activities, which would result in the disestablishment of Eke Panuku. All policy, strategy and planning functions would also return to council.

“Auckland Council is already responsible for urban regeneration through planning and regulation of land use,” Mayor Brown said.

“Eke Panuku’s involvement in urban regeneration has led to duplication and confusion around the accountability of projects.

“My proposal will enable local boards to have greater decision-making power over local urban regeneration so there is a more community-focused approach to local placemaking,” Mayor Brown said.

Tātaki Auckland Unlimited

Mayor Brown is proposing to retain Tātaki Auckland Unlimited’s trust structure to manage regional facilities, Auckland Art Gallery, Auckland Zoo, theatres and stadiums.

Economic development, destination marketing and major events would be consolidated within council.

Auckland Council’s main lever for economic development is planning for land use and infrastructure to support future growth.

The proposed changes will integrate other economic development activities, like support for targeted industries and investment attraction, with the council’s broader role in growing the regional economy.

“The main focus of economic development must be on using our planning tools to lift regional productivity so that all Aucklanders can enjoy a higher standard of living.

“There is a fine line between public good and private benefit when it comes to targeted industry support for things like film and tourism.

“I believe these activities need greater democratic accountability and scrutiny to determine the role they play in Auckland’s growth,” Mayor Brown said.

The proposed changes to Tātaki Auckland Unlimited will not affect service levels, with ratepayer funding for economic development unchanged in the Long-term Plan.

Auckland Transport

Auckland Transport, unlike the other CCOs, is a statutory body. Any structural changes to AT will require legislation.

In August 2023, the Transport and Infrastructure Committee of the Governing Body gave Mayor Brown a mandate to advocate for legislative changes that will restore democratic control of Auckland’s transport system.

“I have made significant progress in my discussions with central government since then,” Mayor Brown said.

Last week, Minister for Local Government and Transport, Simeon Brown, confirmed that the Cabinet has authorised him to work with the mayor on options for transport governance reform.

“The minister and I agree that Aucklanders should be empowered, through their elected mayor and councillors, to make key decisions about the region’s transport system. I will have more to say on that in due course,” Mayor Brown said.

In the interim, Mayor Brown is proposing to take immediate steps to begin the process of taking back control from AT. These measures include a proposal for Auckland Council to assume control of AT’s back-office functions.

“As funder and shareholder, Auckland Council has the right to put conditions on our funding. I have proposed that we get advice on how we can make operational funding of AT’s back-office functions conditional on Auckland Council providing those services,” Mayor Brown said.

These functions will include communications and marketing, legal and finance services. AT will also be mandated to participate in the council’s Group Shared Services programme for information technology, human resources and payroll.

“I have also proposed that Auckland Council take responsibility for all regulatory, policy and strategic planning functions for which AT does not have a statutory role. This includes rules around street trading, as well as the Harbourmaster function,” Mayor Brown said.

The Draft Mayoral Proposal has been informed by advice from council staff on a range of options outlined in the Mayoral and Councillor Direction to Council Group document earlier in the year.

“The public have already had their say and there is a groundswell of public support to get on with making these changes that will benefit Auckland,” Mayor Brown said.

“I am sure my colleagues on the Budget Committee have a strong sense of the public’s appetite for change and I am hopeful they will vote accordingly after we have had an opportunity to talk through the detail of my draft proposal.”

A workshop will be held this week where elected members of council’s Budget Committee will discuss the proposal. Decisions on the CCO model and structure will be made in December.

An implementation plan and consultation with any impacted staff would occur once the Governing Body adopt a final proposal.

The Draft Mayoral Proposal is available on the Auckland Council website.

© Scoop Media