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Phil Goff's first election policy: Review Auckland Council agencies

Monday, 6 May 2019

Auckland Mayor Phil Goff has fired his first shot in the battle for re-election, promising an independent review of the agencies responsible for carrying out most of the council's work.

Council-controlled organisations, or CCOs, such as Auckland Transport, Watercare and ATEED would come under the microscope of the review unveiled in Goff's first policy launch.

The CCOs, created in the 2010 council amalgamation, have always been popular political and public targets and have often been accused of being unaccountable or out-of-touch.

Phil Goff says public entities must be accountable to the public.
Phil Goff says public entities must be accountable to the public.

'Public entities must act in the public good and must be accountable to the public – it's as simple as that,' Goff said.

**READ MORE:

Council controlled organisations to be put under microscope

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Phil Goff has unveiled his first policy for the 2019 election.
Phil Goff has unveiled his first policy for the 2019 election.

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The major agencies are effectively independent companies with their own boards and management. 

Auckland mayoral candidate John Tamihere has called for reform to council agencies, with councillors on all their boards.
Auckland mayoral candidate John Tamihere has called for reform to council agencies, with councillors on all their boards.

They are tied to the council by processes that keep them at arm's length but not out of reach of politicians. 

The structure is unique to Auckland and was created by the government to bring a more businesslike approach to delivering about 75 per cent of council operations.

'There is widespread concern by Aucklanders that having operational decisions made by non-elected bodies means there is no way of ensuring CCOs listen to community concerns and respond to them,' Goff said in his policy statement.

'While they must operate in a commercially efficient way, they are still public bodies funded by Aucklanders and need to carry their communities with them,' he said. 

Goff didn't say how much he expected to spend having four external reviewers conduct an independent study of CCO structure and performance.

The mayor has had a rocky relationship with some CCOs almost since the day he was elected in in 2016.

Within weeks of election Goff, publicly halted a $500,000 global investment and marketing campaign being developed by Auckland Tourism, Events and Economic Development (ATEED), despite the work being approved by the previous council.

It prompted an exchange of letters between the mayor and then-ATEED chair David McConnell, in which McConnell said no private concerns had been raised when ATEED had met with the mayor.

Goff also ended the two-term inclusion of two senior councillors on the board of Auckland Transport, arguing it clouded rather than improved accountability.

The mayor himself moved swiftly after the election in 2016 to create a committee that he would chair to improve the responsiveness and accountability of CCOs.

The CCOs operate increasingly close to politicians, especially the mayor.

Goff meets regularly with the chairs and chief executives of each agency. They also appear quarterly before a full meeting of councillors and are bound by goals and targets set by the politicians in 'letters of expectation' and 'statements of intent'.

The council oversees the appointment of directors and chairs to the CCOs.

There have been no notable failings by the CCOs since 2010, but some have been criticised by the public and politicians at times for alleged poor consultation with communities in which they operate.

The mayor's challengers in this years election have been quick to accuse Goff of losing control of the agencies, such as when Auckland Transport opted not to appear at a heated St Heliers residents' meeting.

'I want all council-owned organisations under democratic control,' mayoral challenger John Tamihere sai.

'As a first step I will appoint elected councillors on every Council business board to ensure openness and oversight.'

Goff said the tenth anniversary of the amalgamated Auckland Council in 2020 was an appropriate time to review whether the CCO model is working as well as it could.

Significant reforms might require changes to the legislation which created the agencies during the amalgamation process.