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Councillor John Watson describes the independent review of Auckland Council’s seven Council Controlled Organisations (CCOs) as “a damning indictment” and it highlights many faults and problems with the organisations.
However, it leads with the view that the model is the right one for Auckland, and in the main works well, so it is clear there will be no major dismantling or overall restructuring.
The review was commissioned by Council, and could cost as much as $800,000.
Key criticisms in the report are that Auckland Transport does not collaborate enough with Council on transport strategy and setting bylaws; the way it designs, consults on and implements small projects is far from satisfactory; and the way it receives funding needs streamlining.
It says Panuku lacks a clear purpose; is caught up in duplicated property sales processes; has problems with the funding of its redevelopment work; and that its overheads are too high and its focus too wide.
When it comes to Watercare, the report says infrastructure expansion work is not effectively coordinated with Council and its consenting work is too slow. Another problem is a lack of Council input into the setting of long-term water prices.
Its list of 64 recommendations include that Council and CCOs explore options to give ratepayers a more effective voice and also how, short of court proceedings, to challenge CCO or council decisions.
Also that CCOs need to make more effort to coordinate how they consult the community on local projects.
Regarding salaries, currently set by each CCO board, the report recommends that Council have some say about chief executives’ pay as well as their appointment and tenure.
“CCOs are public sector entities, not private commercial companies, and their chief executives’ remuneration must reflect this fact,” the report says.
Cr Watson says the public’s scathing assessment of the CCOs, which have consistently low public trust and confidence ratings, was strongly felt on the Hibiscus Coast.
“People want results not endless processes and procedures that sideline legitimate public expectations,” he says. “In the past when Councillors tried to hold some CCOs to account, there has been no support – we have had to go to external agencies to seek intervention on behalf of the communities we represent. That’s unacceptable. Now is the time to take on board the recommendations of the panel and change the accountability and culture of the CCOs.”
“This report is a timely reminder that CCOs are community-owned entities. They are there to provide services to Aucklanders. Some have been allowed to act like autonomous corporates. That needs to stop. It will take the right people with the right attitude to do this and we won’t have to wait too long to see if there’s a genuine will to do this, or if the self-serving status quo of the past is allowed to persist.”
Councillors will now consider the report before making decisions on which recommendations will be adopted as part of the 10-year Budget.
The seven CCOs are Auckland Tourism Events Economic Development, Auckland Transport, Watercare, Auckland Council Investments, Panuku Development Auckland, Waterfront Auckland, and Regional Facilities Auckland (RFA).
