By WAYNE THOMPSON
Auckland could set up a commercially focused body to manage the region's public transport plans, under a new proposal.
Auckland, Manukau, Waitakere and Papakura councils are considering a body to manage rail assets they would receive under a $65 million agreement with Tranz Rail for access to rail lines.
Under the proposal by the councils' officers, Auckland City would dominate.
Allocation of shares and voting would be according to a formula based on land value, under the plan. It suggests a local authority trading enterprise, or LATE, holding and managing passenger rail assets.
Auckland City would have 63 per cent of shares; Manukau, 21 per cent; Waitakere, 12 per cent; Papakura, 3 per cent; and Franklin, 1 per cent.
An electoral college would be formed by representatives of the councils to appoint independent directors to manage the LATE.
College members would also approve asset plans, approve new investments, and consult their councils.
In the college, Auckland would have four votes compared with three for Manukau, two for Waitakere and one each for Papakura and Franklin.
Initially, only the councils involved in trying to clinch a $65 million rail lease deal with Tranz Rail would have shares.
But the LATE structure would be flexible to absorb the interests of North Shore City, which is working on a $130 million Rapid Bus Transit Project.
North Shore has long called for a single entity to manage both rail and bus projects.
None of the council owners would put up the capital to buy the initial rail assets.
But they would be asked to put up uncalled capital, which can be called upon by the company if needed to meet annual access payments to Tranz Rail, at present estimated to be $2.25 million a year.
The councils would be expected to contribute to building the $1 billion rapid transit system at a later date.
It is possible that capital contributions would reflect the vote/share allocation.
The sale of shares would be restricted.
The LATE proposal is preferred by the Auckland Regional Council passenger transport subcommittee, formed of representatives of five councils.
They are seeking the endorsement of their councils and the regional council before the subcommittee's next meeting on September 29.
Infrastructure Auckland, which would put up some of the money, says it is happy with a LATE structure.
But getting rapid and widespread agreement on the form of a single entity will be difficult, judging by the reaction yesterday of the Waitakere City Council's works and services committee.
The committee chairman, Allen Davies, said the council preferred a joint venture to a LATE and it wanted time to consult the community, some of whom linked a LATE with privatisation.
The opinion of the full council will be sought.
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