The V8 Supercars at Pukekohe are part of Ateed's portfolio of major events. Photo / Greg Henderson
The V8 Supercars at Pukekohe are part of Ateed's portfolio of major events. Photo / Greg Henderson
A merger of the sporting, cultural and entertainment arms of Auckland Council has been approved today.
From December 1, Auckland Tourism, Events and Economic Development (Ateed) will be merged into Regional Facilities Auckland to create a new and yet unnamed council-controlled organisation (CCO).
The merger - the main finding of an independent review of the five CCOs - was unanimously given the green light by Mayor Phil Goff and councillors at a governing body meeting.
The governing body unanimously agreed to all 64 recommendations in the CCO review, which found that on the whole the CCOs worked well, but there was low trust and confidence in both the CCOs and council.
The review criticised the council for offering almost no practical strategic direction to the CCOs, saying in areas like water, property and arts and culture, it had no strategy at all, and other strategies are out of date.
Mayor Phil Goff, who promised the review during the 2019 mayoral election, said while the CCOs have achieved much since the formation of the Super City 10 years ago, the review found significant room for improving the council's relationship with and oversight of the CCOs.
The review said the merger would be a big step to "enriching the lives of Aucklanders" and save between $5 million and $7 million a year.
Many of the savings will come from a single management team and a single board. Regional Facilities currently spends about $3.5m a year on executive salaries and board fees. Ateed's bill for these costs is about $1.9m.
Regional Facilities Auckland chief exeuctive Chris Brooks. Photo / File
The last salary figure for Regional Facilities chief executive Chris Brooks is $480,000 and $425,000 for Ateed chief executive Nick Hill.
Regional Facilities owns many of the city's major venues like the Aotea Centre, Civic Theatre, Mt Smart and Western Springs. It also runs the Auckland Art Gallery and Auckland Zoo, and gives money to Auckland Museum, Motat, Stardome and the Maritime Museum.
Ateed is responsible for major events like the V8 Supercars and the World Masters Games in 2017. It also runs big cultural festivals like the Lantern Festival, Diwali and Pasifika and sports events like the Auckland Marathon.
The two CCOs both work in the events space and as far back as 2011 a report argued there was too much double-up.
The review said the main purpose of the merger would be to make Auckland the preferred city in which to live, work, visit, invest and play.
Eden Park could be jointly managed by Auckland Council. Photo / File
It also said the merger could address the long-running saga over a stadium strategy for Auckland and explore the possibility of joint management and operation of the four stadiums, including Eden Park, which is run by a trust.
Another proposal on the table for further work is bringing Auckland Museum and Motat under the wing of council. The museum operates under its own act and levies the council about $32m a year.
The review said the museum was opposed to any changes to its statutory independence, but supported bringing all of the city's cultural institutions into one entity "so Aucklanders can benefit from having an integrated group of museums working together in a collaborative manner.
Motat indicated to the review it would look favourably at joining a merged entity.
Today's decision by the council will also see Ateed's economic development function rolled into the new CCO, even though the other CCOs and council contribute to economic development.
Auckland Art Gallery will be part of the new entity. Photo / Supplied
The timing of the new CCO is not ideal due to the impact of Covid-19 on the events and entertainment sector. Regional Facilities is forecasting revenue to fall by $40m this year and many of Ateed's events have been cancelled.
The other three CCOs - Auckland Transport, Watercare and Panuku Development Auckland - will carry on, but with greater political oversight and measures to make them more responsive to communities.
Councillor Angela Dalton, deputy chair of the CCO oversight committee, said of the 64 recommendations in the review, 25 will be progressed over the next six months, while others will require further analysis, progress through the 10-year budget process, and input from CCOs, Local Boards and Aucklanders.
