CCOs will be democratic, accountable

Many statements being made about the new Auckland Council controlled organizations (CCOs) are simply wrong, and misrepresent the clear intentions of the proposed law, says Employers & Manufacturers Association chief executive Alasdair Thompson.

“Auckland voters will see many of the comments for what they are, to get public attention in the lead up to the election,” Mr Thompson said.

“Let’s not forget a council controlled organization is council controlled.

“The CCO structure outlined in the legislation is a key element of the reforms and trying to undermine them strikes at the heart of the reform process.

“The proposed law makes clear that the Auckland Council's role will be to make its CCOs fully accountable to it, and Auckland councillors will be held accountable for the performance of the CCOs by Auckland’s ratepayers.

“Under the proposed law, strategic planning and policy decisions will be made by the Auckland mayor and councillors who will set the agenda, appoint CCO directors, and hold the CCOs to account for carrying out those plans.

“The legislation stipulates the CCOs must follow the requirements of the Auckland Council as expressed through a Statement of Intent (SOI) and by key performance indicators (KPIs).

“If the Auckland Council decides the CCOs should hold public meetings and work closely with Local Boards, and adopt a strong consultative approach when taking decisions, then the CCOs will be obliged to do this.

“But for elected councillors to be accountable effectively between themselves and their CCOs they will need to be competent.

“Though EMA is comfortable in general with what the legislation prescribes to achieve this accountability, more detail is required and the Transition Authority has said this is being developed.

“We are on record recommending a clear statement be made in the law about the accountability of the CCOs and with CCO pricing to be made subject to Commerce Commission regulation and oversight.

“We also want to see a consultation process around the appointment of the inaugural directors for the CCOs, and its good to see Minister Stephen Joyce say this will happen.

“We can see no justification for having a waterfront development CCO, preferring instead a council committee to oversee this.

“The proposed law provides for the CCOs to:
• To give effect to the Spatial and other Auckland Council plans
by carrying out those plans where they impact or overlap with the CCOs own sphere of operations.
• The CCOs must agree annually a Statement of Intent (SOI) with the Auckland Council, which will be made public.
• The CCOs must report six monthly and annually to Auckland Council. These reports are to be audited by the Auditor General.
• The performance of each CCO will also monitored by the Auckland Council Governance and Monitoring Unit.
• The Auckland Council also has the absolute power to appoint and remove CCO board members (after the initial boards have been appointed by the relevant Minister).
• CCOs will also be subject to the access to information provisions of the Local Government Official Information and Meetings Act 1987 and the Ombudsmen Act 1975.


“CCOs are widely used throughout New Zealand because they allow councils to adopt commercial disciplines and use specialist expertise that may not be otherwise available to a council. They help deliver better council services at lower costs to ratepayers.

“We agree with the broad criteria laid down in the legislation for the CCOs under which they must meet good governance principles including being:
– Democratic, including accountable and transparent decision-making, effective leadership, stewardship, ratepayer and citizen redress; and
– Efficient and effective, including vertical alignment of strategic planning, funding, asset management and implementation.
– They must be feasible to implement within the required timeframes. Transitional arrangements should enable any new organisations to conduct business-as-usual and be in place by1 November 2010.
– Be consistent with government programmes and initiatives, including the resource management reforms and broader local government framework changes, and
– Recognise the Treaty of Waitangi.”