Key delays naming Super City agency boss

Cartoon / Rod Emmerson

Cabinet concerns about the leadership skills of the proposed chairman have delayed the announcement of the agency to design Auckland's Super City, says Prime Minister John Key.

Local Government Minister Rodney Hide was to announce the Auckland Transition Agency yesterday. However, Mr Key said an "issue" arose at Cabinet.

He said it was important to find a chairman with the right leadership skills for such a big job.

"I just want to make sure that person can discharge those responsibilities professionally and appropriately to the standard that we require to make sure the Super City is successful," Mr Key said.

Mark Ford, chief executive of the region's water wholesaler Watercare Services, is the frontrunner to head the agency. Other businessmen in the running to join the five-strong board are accountant John Waller, Wayne Walden and Chris Mace.

Labour leader Phil Goff attributed the delay to the "Rankin" effect - a reference to the fallout from the Government's appointment last week of Christine Rankin to the Families' Commission. He said the delay, coming after the Government rushed through legislation setting up the transition agency under urgency, showed the situation was becoming chaotic.

The agency has the large, complex, public and controversial job of restructuring the eight councils into a single entity by October 31 next year.

The Labour leader also highlighted comments from Auckland City Mayor John Banks, who suggested huge job losses.

On Radio Live yesterday morning, Mr Banks said: "I would be surprised if the new council structure would need more than about 60 per cent of the staff that they have got at the moment."

Under this scenario, more than 2700 of Auckland's council workforce of 6800 would lose their jobs.

Several hours later, Mr Banks said he regretted using the 40 per cent figure, saying it was only a guess made during the cut and thrust of the radio interview.

Mr Key said no one, including the Government, had done work on job losses. Any numbers were pure speculation.

He did, however, say there would be saving and synergies, "otherwise we wouldn't do it".

Public Service Association national secretary Richard Wagstaff said Mr Banks' figure was the first indication of large-scale job losses at a time of recession.