Insufficient thought put into CCO establishment

Today’s Auckland Transition Agency (ATA) discussion document on council-controlled organisations of Auckland Council takes a ‘one size fits all’ approach, Manukau Mayor Len Brown says.

“This document does bring some certainty, but still leaves much that is unresolved, which points to a rush in decision-making for its own sake, without enough thought for the consequences,” Mr Brown says.

The decision to disestablish the Manukau Leisure Services Ltd council-controlled organisations, and Manukau Building Consultants Ltd, is regrettable and premature.

Manukau Leisure was set up in 2007 to make what was a council unit better able to respond quickly to a rapidly changing market while meeting the high standards the city’s residents expect.

“Since its formation, the company has made savings and taken on innovative initiatives that would not have been possible had it been within the council structure. Importantly, Manukau Leisure has also been able to retain the important social focus expected of public leisure facilities, such as the free access to swimming pools that our ratepayers want.”

Manukau Building Consultants was established to be better respond to high customer expectations in an extremely demanding market and had made huge strides in a volatile industry through a successful public-private partnership model.

The decision to disestablish the companies and include them in the Auckland Council structure has been taken prematurely and without sufficient thought to possible reasons for including these functions within the council structure, Mr Brown says.

“There is a very real opportunity here for innovative thinking, to take the advantages Manukau has experienced and apply them across the region. Instead, we see scant thought, with these decisions made for the sake of uniformity, rather than on a business basis and for public good - these two things need to be balanced on a case-by-case basis.

“Conversely, we see transport, which by necessity is a monopolistic function, being put into a CCO. And, all of these decisions are being taken without recourse to democratic processes.

“Wellington and unelected people are making decisions with huge ramifications about ratepayer-owned assets, completely at odds with the intent and letter of the Local Government Act 2002 which demands ratepayers be consulted about the establishment of CCOs. Somehow, Auckland and Aucklanders have become an exception to the rest of the country.”

Mr Brown acknowledges the region needs impetus around much of what is contained in the discussion document – investments, economic development and tourism, the major regional facilities, properties and the Auckland CBD waterfront.

”What we don’t want to see is high-performing structures dumped for the sake of perceived uniformity based on existing council operations. These decisions belong to the Auckland Council. It should decide how it delivers its services and functions, and therefore promote ownership and, most importantly, accountability.

“We have a unique opportunity to apply innovation, rigour and strategic thinking both to ensure what is best for Auckland’s future development and deliver our services to our ratepayers. Let’s not squander it.”