Auckland Council's CCO structure approved by Government

The final structure of Auckland’s council controlled organisations has been agreed by the New Zealand Cabinet, 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 CCOs include three with specific leisure responsibilities:

Regional Facilities Auckland (RFA)
The RFA will provide a regional perspective to the development of Auckland’s arts, culture and heritage, sport, recreation 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 Tourism, Events and Economic Development Ltd (ATEED)
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.

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 other four CCOs include a statutory entity, Auckland Transport, and the existing water entity, Watercare along with the new Auckland Council Investments Ltd (ACIL) and Auckland Council Property Ltd (ACPL).

The consolidation of assets and services of existing Auckland councils and CCOs into these new organisations will now begin through a process of Council orders that will direct the establishment of the new CCOs; set out their objectives and board structure; and transfer assets to them from existing councils and 14 current CCOs that are being disestablished.

These council controlled organisations will be subject to the enhanced accountability and transparency requirements in the Local Government (Auckland Council) Act 2009.

Minister Hide explained that “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.”

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.

“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,” Minister Hide concluded.

In sport and recreation services, which will managed by Regional Facilities Auckland, the new CCO faces the challenge of bringing together different service delivery models with in house operators (North Shore, Waitakere and Rodney Councils), contracted out services (Papakura, Franklin and Auckland City Councils) and Manukau Leisure Services, an existing CCO.

The current councils each have different social policies, with Manukau City Council, for example, having free entry to swimming pools.

As one source suggested “its going to be really interesting how the new CCO will cobble all the different social policies together.”

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