Auckland Council agency review: Councillor warns politicians could be found at fault

Tuesday, 26 November 2019

Politicians have been warned they could be found at fault in an independent review of major council-controlled organisations (CCOs).

The Auckland councillors have given the green light to the $800,000 review of the effectiveness of the 'CCO model', which was created in legislation a decade ago to keep much of the city's operations at arm's length from politicians.

The agencies spend 55 per cent of the council's budget. 

Mayor Phil Goff said some of their work had been brilliant and some of it not good.

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'When I found out, unbeknown to anyone here, that a system of in-house bonuses was happening at [development agency] Panuku – that was unacceptable,' Goff told a council meeting on Tuesday.

Goff said public concerns about whether the agencies were accountable to communities had been strongly signalled during the recent election campaign.

However, councillor Chris Darby said the review's proposed work on how accountable the CCOs were might also find the politicians at fault.

'In the last quarterly reporting by the CCOs, only half of the councillors turned up to ask questions – then we say the CCOs are out of control,' he said.

The CCOs, such as Auckland Transport and Watercare, each have their own boards of directors. They operate under a series of annual agreements with the council itself.

Darby believed in addition to reviewing the CCO model, a decade on from the creation of Auckland Council, a review of the whole structure was timely.

Councillor Daniel Newman feared the review by a three-person panel risked being 'beige.' 

'Real reform starts with winding up Regional Facilities Auckland, Panuku and ATEED,' he said.

Another councillor, Richard Hills, said often there had been public confusion about whether the issue they opposed was the work of a CCO or of the council or local board.

The independent review panel members have yet to be appointed.

They will have a draft report by May 2020, with final recommendations by July.

Public consultation is expected in the first three months of 2020.