The Government has done well in its selection for premier Council Controlled Organisation roles in the new Super City, writes Fran O'Sullivan.
The Government has done Auckland proud by approving a stellar cast of well-qualified and passionate Aucklanders as the inaugural chairmen and directors of the council-controlled organisations (CCOs).
Waitakere Mayor Bob Harvey and former Commonwealth secretary-general Don McKinnon - who both have gilt-edged political credentials - will play a big role in chairing separate agencies charged with the development of Auckland's sparkling waterfront and major facilities like the Viaduct Events Centre and Mt Smart stadium.
These "to die for" roles admirably suit their out-going personalities which will be brought into play as Auckland readies itself to host the Rugby World Cup in 2011. The 31 appointees - including 8 women - were drawn from a list of more than 200 nominations and were each required to have a strong background in corporate governance.
Unlike many political candidates vying for the 20 elected ward councillor positions on the new Auckland Council, or, for a position on a local board there are no obvious political hacks in the CCO line-up.
Auckland Transition Agency chairman Mark Ford who has been appointed chair of Auckland Transport - is looking forward to the challenge. Ford was previously chair of Arta - the Auckland Regional Transport Authority.
He stresses that appointment is designed to ensure that the Auckland transport world "keeps working" in the lead-up to next year's Rugby World Cup. "That's why I have agreed to a one year appointment."
His ATA colleagues - Miriam Dean and John Law - have also won CCO appointments. But neither Ford nor Dean or Law participated in the short-listing process or the decisions on remuneration. "The decisions to appoint them were made by relevant Ministers because they were seen as the best people to do their particular jobs," said a Government briefing paper.
Top-class businessmen like former NZX chairman Simon Allen and Committee for Auckland board member David McConnell have "stepped up" because they want to make a difference to Auckland's prospects.
Auckland Council interim chief executive Doug McKay says the number of applicants for CCO board positions "blew everyone away."
"I believe they will be fantastic, it's a very select bunch," says McKay. "They'll be prestigious jobs - they'll be very important jobs.
"And the pressure will be on for all of us to perform."
The Auckland Transition Agency has been finalising balance sheets for the six council-controlled organisations and one continuing organisation (Watercare Services).
Some asset values have bounced around during the valuation process - particularly that of the Auckland Waterfront Development Agency.
But by the time the boards convene for the first meetings of their CCOs this November they will have final numbers.
Local Government Minister Rodney Hide stresses that directors will have to make sure they have done their own due diligence on their particular company. Hide says they will not be offered indemnities to protect themselves from the downside of any irresponsible decision-making. "I want them to perform."
Four of the six new CCOs have assets around the billion dollar mark.The Auckland Transport CCO's assets are worth about $1.5 billion, Regional Facilities Auckland ($968.3 million), Auckland Council Property ($1 billion) and Auckland Council Investments ($1.2 billion equity portfolio).
The boards may be high-powered. But they do ultimately come under the Auckland Council's thumb.
McKay makes the point that the CCOs are really council's delivery arm. "It's very important that the CCOs understand that. They are subsidiaries of council - we are one council - the CCOs all have the one shareholder, so there needs to be one plan and one way of doing things in Auckland."
McKay intends to ensure the legislative controls are adhered to. " I don't want CCOs duplicating resource. We don't need CCOs having their own fully staffed HR departments or communications departments or anything else where those resources exist within council.
"I don't want different policies on things which inhibit us moving people to develop careers across to CCOs and back again to council. We want to make that all easy to operate."
At the formal level each CCO will be required to adhere to its Statement of Intent, service level agreements, and, state its intentions in an annual plan. Together with the Auckland Mayor, McKay will undertake quarterly reviews of operations. "The real plus will be in the informal relationships that I, and the mayor in particular, can establish with the chairman and the CEOs of the CCOs."
Hide - who was actively involved in the consultative process - says he was very impressed with the calibre of the people who stepped up. "You've got two desires - one is to get excellent people and then also to get a good representation of Auckland - that's what's been driving us.
"And also to have a good process - we're engaged with everyone on it because it's an appointment for Auckland - not for the Government and not for me"
"And of course it's one of the interesting things - that there is no option but to appoint them because the administration and the CCOs need to be up and running on Day One otherwise Auckland would grind to a halt."
