Mayor Wayne Brown’s plan to dethrone Auckland Transport in council-controlled organisation shake-up

• Auckland Mayor Wayne Brown wants elected representatives to control Auckland Transport.
• Brown proposes abolishing Eke Panuku Auckland and Tātaki Auckland Unlimited, bringing their activities in-house.
• Brown’s proposals will require the backing of councillors and a law change in the case of Auckland Transport.

Auckland Mayor Wayne Brown wants to “dethrone” Auckland Transport (AT) by stripping its mostly unelected board members of powers and putting elected representatives in full control.

The proposal is part of the biggest shake-up of the council-controlled organisations (CCOs) since the Super City was formed in 2010, and includes plans to abolish the council’s development agency, Eke Panuku Auckland, and its events and economic development agency Tātaki Auckland Unlimited.

Brown outlined his intentions for CCO reform in an exclusive statement to the Herald today.

It was released after the chief executives of all the CCOs were briefed this morning on the mayor’s plans by the council’s chief executive, Phil Wilson.

“Aucklanders elected me on a platform of five priorities, one of which was to take back control of CCOs and I am committed to that,” Brown said.

Auckland Council chief executive Phil Wilson has briefed CCO chief executives on the proposed reforms.

“The CCOs are responsible for two-thirds of what Auckland Council does. They own most of our asset base and absorb half of our operating budget. Yet we don’t have much say over what they do.

“I have asked council staff to provide my office with advice on CCO reform. We are looking to bring some or all of the activities performed by Tātaki Auckland Unlimited and Eke Panuku in-house. This isn’t a slash-and-burn exercise. Rather, we want to look at how services are delivered.”

Brown’s proposals, which will require the backing of councillors and a law change in the case of AT, reflect the mayor’s frustration with the CCO model.

His biggest beef is with AT, which he said “must be the most loathed organisation in council. I should know. I get all the emails from ratepayers demanding it be fixed. But truth be told, Auckland’s transport system is simply not fit for purpose”, he wrote in a post on social media two months ago.

Today, Brown said in the case of AT the term “CCO” is a misnomer, saying Aucklanders blame the mayor and councillors when AT doesn’t listen, adding that under the law AT is an independent body with a general power of competence, the same as a council.

“The layers of bureaucracy and management within AT are totally impenetrable to elected politicians. We ask for information and don’t get it. We tell AT through the letter of expectations what they should do, and they often don’t do it. They have made some progress on a few things, but there is no sense of urgency,” the mayor said.

Auckland Transport must be the most loathed organisation in council.

I should know. I get all the emails from ratepayers demanding it be fixed.

But truth be told, Auckland’s transport system is simply not fit for purpose.https://t.co/cCxOrs04EW

— Mayor Wayne Brown (@MayorWayneBrown) June 5, 2024

“The only real power we have is to change the board. But we’ve tried that. It’s not effective because the culture of independence is so deeply embedded. That’s not a reflection on individuals. The problem is a badly designed system and a legal framework that is not fit for purpose.

“I firmly believe that the only way to fix transport in Auckland is to dethrone AT by stripping it of all policymaking and strategy functions. AT should just be a delivery agent with the people’s elected representatives in full control.

To achieve this, Brown is pressing Local Government Minister Simeon Brown to repeal Part 4 of the Local Government (Auckland Council) Act. This part of the act provides the powers and functions of AT, and prohibits the council from exercising them. Wayne Brown has already called on the minister to have the power to set its own 10-year transport plan.

Auckland Mayor Wayne Brown wants AT to deliver services, like public transport, but leave policy and strategy to elected representatives. Photo / Jason Oxenham

Wayne Brown said he is open about how change occurs at AT, but had been clear with the Government about what is needed, saying: “I have broad support from councillors to investigate options for legislative change.”

Wilson commented on behalf of the impacted CCOs, “given the early stage of where it’s at”, saying it’s the beginning of an important piece of work and while there are no formal proposals or decisions made, “we are committed to working quickly to avoid prolonged uncertainty for our people and the valuable work they do”.

He said any proposals will be part of next year’s annual budget process, which begins later this year.

“Right now we’re considering how we provide advice and support for our elected members, alongside any opportunities to work with staff and seek their input,” Wilson said.

“While we have seen some changes to the group structure since our formation nearly 14 years ago, much has changed in Auckland in terms of growth, our economy and the impacts of the global pandemic. It is important that we always remain focused on opportunities to improve the delivery of our services and achieve value for our ratepayers and Aucklanders.”

Wayne Brown and the AT board are understood to be in a stand-off about appointing a new chief executive. Dean Kimpton (pictured) is currently in the role on an 18-month contract. Photo / Jason Oxenham.

Meanwhile, mayoral sources have told the Herald that Brown is engaged in a stand-off with the AT board over the appointment of a new chief executive.

The sources said the board want to appoint Dean Kimpton to a permanent role when his 18-month, fixed-term role as chief executive ends in October against the wishes of Brown, who wants the board to undertake a proper recruitment process.

“It has become immensely frustrating for the mayor,” one source said.

AT chairman Richard Leggat said the board has been through a thorough process to appoint a permanent chief executive and engaged with the mayor throughout the process.

“We will make an announcement on the permanent role when we are ready,” he said.

The only CCO not facing any significant change is Watercare, which manages the city’s water supply and wastewater services.

The Herald is seeking comment from Simeon Brown.

CCO timeline

2010 – Auckland Council set up with seven CCOs: Auckland Transport, Watercare, Auckland Tourism, Events and Economic Development (Ateed), Waterfront Auckland, Regional Facilities Auckland (RFA), Auckland Council Property, Auckland Council Investments.

By 2020, the CCOs had been whittled down to five – Auckland Transport, Watercare, Ateed, Panuku Development Auckland, and RFA.

In late 2020, the CCOs became four after Ateed and RFA merged to become Auckland Unlimited.