Rob Fisher: Super City will keep close eye on new council agencies

Photo / Glenn Jeffrey

In your pages on January 6, councillor Grant Gillon questioned the proposed establishment of Council Controlled Organisations (CCOs) and their role as part of the new Auckland Council.

He also commented on the powers of local boards. The Auckland Transition Agency (ATA) was established by the Government to plan and manage all matters in relation to the reorganisation of local government in Auckland, to ensure that Auckland Council is ready to function on and from November 1 this year.

The transition agency is required by legislation to establish a Regional Transport Agency, and to oversee the work of Watercare Services Limited to integrate water supply and wastewater services in the region.

These services are undertaken by six organisations including several councils and council-controlled organisations such as Metrowater and Manukau Water.

The Cabinet has also approved the establishment by the transition agency of a Waterfront Development Agency, and given approval in principle to other council-controlled organisations dealing with economic development, tourism and events, property holdings, major regional facilities and council investments.

In each case there are already council-controlled organisations established by some of the councils undertaking those functions.

The Local Government Act 2002 empowered councils to establish CCOs and related council organisations. In less than 10 years, the councils have established in excess of 70 CCOs and related organisations and also many more activity-specific trusts funded wholly or in part by councils.

The council-controlled organisations and related organisations need rationalising and reorganising to enable the new Auckland Council to operate effectively and efficiently. Some trusts will be wound up but many will continue as at present.

The initial boards of the council-controlled organisations will be appointed by Cabinet and thereafter by the Auckland Council.

While operations on a daily basis will be autonomous, each organisation will be accountable to the council through a Statement of Intent and quarterly reporting measured against this statement.

For a number of council-controlled organisations, this degree of oversight may be more stringent than which currently exists.

An example of a CCO in action currently is the Auckland Regional Transport Authority (ARTA). Its Statement of Corporate Intent is required to be signed off by the Auckland Regional Council.

The transport authority's performance is measured against this, as well as a range of transport plans. The new Transport Agency proposed under the Local Government (Auckland Law Reform) Bill will be subject to similar oversight from the new Auckland Council and will be required to plan in accordance with the spatial plan developed by the Auckland Council.

Local boards for Auckland are new entities. They are not a local authority, but nor are they a community board. Both the Auckland Council as the governing body and the local boards are responsible and democratically accountable for the decision making of the Auckland Council.

The specific roles of the local boards have not been spelt out in the Local Government (Auckland Law Reform) Bill ("The Third Bill"); instead the responsibility for defining the role, functions, powers and duties of local boards, including their initial budgets, has been given to the Auckland Transition Agency.

The general approach being taken by the transition agency is that if a function is of local rather than regional significance, then the function should lie with the local board.

The transition agency is proposing that a discussion paper dealing with local boards will be issued in March.

* Rob Fisher is the legal adviser with the Auckland Transition Agency.