KEY POINTS:
The cost of inner city parking and other council services could rise under a plan to replace the elected councillors who run them with more commercially-minded business people.
And placing services into a "holding company" would create the public perception that the council was losing control of key assets and leaning towards privatisation, say papers released to the Herald under the Official Information Act.
Citizens & Ratepayers councillors have cautiously backed the idea of paying businessmen directors' fees to run many of the council's services on commercial lines.
Obvious contenders include the council's interests in Auckland Airport and Westhaven Marina that have an arm's length, commercial focus.
But in a surprise move, officers have included a vast range of community services in the belief that businessmen would bring improved governance and increased commercial focus lacking from the likes of Mayor John Banks and councillors.
The papers show senior Treasury officers delayed the holding company report until September to give finance general manager Andrew McKenzie "more time to warm up the councillors to the issues".
One councillor who needed no warming up was C&R leader David Hay.
The veteran councillor, who played a role in selling pensioner housing and airport shares two terms ago, asked senior officers in July to look at appropriate governance structures for the zoo, gallery and libraries.
Arts, culture and recreation general manager Dr Jill McPherson emailed Mr McKenzie on July 23 to say Mr Hay was concerned that the zoo and art gallery boards were not "adding sufficient value" and whether a board of interested individuals would add value to libraries, "which he saw as a big cost to the council".
The papers also suggested less political interference and greater commercial focus on The Edge, which runs the Aotea Centre, Civic Theatre and Auckland Town Hall.
This could create more variety and higher-quality commercial entertainment, although at a cost of "lower quality and/or higher costs of entry" for its arts agenda.
Officers took a look at the cost-benefit of putting various services into a holding company.
Despite finding "no compelling reason" to transfer Auckland Zoo and recreational services into a holding company, officers later put these two services on a "high priority" list.
The other services on the high priority list were the airport shares, City Parks Services, parking and Treasury funds management. Other services were bracketed as "medium priority" and "not a priority".
The papers were frank about likely cost hikes from further commercialisation.
One example: "Parking operations may lead to an increase in the cost of on-street and off-street parking, making it uneconomic for many ratepayers to park in the city."
Council officers blacked out whole sections of information about the holding company plan on the grounds that it was commercially sensitive. These included the pros and cons of different types of structures, legal implications and funding options.
Some material was provided by consultants PricewaterhouseCoopers at a cost of $23,280 to ratepayers.
Investment bankers ABN Amro also put a proposal to the council at their own cost. This was withheld.
* Services that could be run as businesses
High priority:
Auckland Zoo
Recreation facilities
Auckland Airport shares
Parkright (Auckland City parking)
Treasury funds management function
City parks services
Medium priority:
Marinas
Auckland Art Gallery
Wharves and airfields
The Edge
Auckland City Environments (resource/building consents)
Property Enterprise Board
Libraries
Not a priority:
Metrowater
Watercare
