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Wayne Brown has proposed abolishing Auckland Transport and other CCOs as part of his last budget this term.
Brown aims to improve accountability and reduce wasteful spending, with changes effective from July next year.
Other options include transferring some of the CCOs’ functions to the council.
Abolishing Auckland Transport is among the options in a massive shake-up of council-controlled organisations (CCOs) drawn up by Mayor Wayne Brown.
In the first public report on CCO reform, Brown has gone as far as recommending scrapping AT; the economic and events agency, TātakiAuckland Unlimited (TAU); and the development agency Panuku Auckland. Other options include transferring some of the CCOs’ functions to the council.
The only CCO left untouched is Watercare, which manages the city’s water and wastewater services on a user-pays model.
There’s an option for no structural change of the CCOs, but this is highly unlikely given the political and public sentiment.
Under one option, Auckland Council would take over cycling from AT.
The Herald understands the mayoral office has commissioned polling showing more than 80% of Aucklanders support CCO reform.
In a paper to local board members on next year’s budget, Brown has highlighted his election promise to “take back control of CCOs”, citing ongoing concerns about public trust and confidence, ineffective democratic accountability, wasteful spending, and acting out of step with the council.
Councillors have been briefed on the proposals at workshops, starting last week and running this week.
The CCO reforms will be the centrepiece of Brown’s pre-Christmas draft budget proposal unveiled next week going out for public consultation about March before being debated and voted on by councillors to come into effect on July 1.
Auckland Mayor Wayne Brown wants to be in the driver's seat running Auckland Transport. Photo / Dean Purcell
For Auckland Transport, which Brown has said “must be the most loathed organisation in council”, there are three options.
Turn AT into a service delivery agency by transferring strategy, policy and planning functions to the council, including responsibility for the Regional Land Transport Plan.
Turn AT into a service delivery agency by transferring strategy, policy and planning functions to the council, including responsibility for the Regional Land Transport Plan, and bringing transport services like roads, footpaths, parking and cycling under council control.
Disestablish AT and deliver all functions via the council.
For TAU, which is responsible for economic development, and managing and attracting events to the council’s stadiums, cultural institutions and Auckland Zoo, there are two options.
Retain the TAU Trust, which is responsible for major regional facilities, as a CCO, and transfer its economic development, destination and major events activities to the council.
Disestablish TAU altogether and deliver all functions via the council.
For Panuku, which oversees urban regeneration projects, buys and sells property, and manages Westhaven Marina and other commercial properties, there are three options.
Come up with other models for urban regeneration that might have a greater focus on economic growth and local boards playing a bigger role.
Reset Panuku as an urban regeneration delivery agency by transferring strategy, policy and planning to the council, as well as buying and selling property.
Disestablish Panuku altogether and deliver all functions via the council.
Since the Super City was established in 2010 with seven CCOs, they have been whittled down and merged to create the current four agencies overseen by unelected directors drawing ratepayer-funded fees. A 2020 independent CCO review recommended many improvements, but the paper said many of the challenges still exist.
The paper said service levels delivered by the CCOs will not be affected, other than they may be delivered by a different organisation, and staff will have the opportunity of continued employment if services are brought in-house.
Auckland Council could run future concerts like this U2 performance at Go Media Stadium. Photo / Steven McNicholl
“However, we envision some cost savings might be achievable from the reduction in board members, executive management and removal of duplication,” the paper said, saying a programme to share back office service between the council and CCOs will continue.
Brown said the council had made excellent progress in the just-completed 10-year budget on fixing things that aren’t working for the council, particularly improving the physical and financial resilience of the council to ease the load on ratepayers.
With one last budget until next year’s local body elections, Brown said his priority is considering how CCO reform could better deliver services and provide greater outcomes for our communities - “better, faster, cheaper”.
The paper said CCOs are an effective way to deliver some services, but questioned if there are systemic problems that require structural change or further adjustments to the existing model.
In August, the mayor told the Herald the only way to fix transport is to “dethrone” AT by stripping it of all policymaking and strategy functions.
“AT should just be a delivery agent with the people’s elected representatives in full control,” he said.
For Brown to make any meaningful change to AT requires the support of Transport and Auckland Issues Minister Simeon Brown to repeal the part of the Local Government (Auckland Council) Act that makes AT a statutory body and independent from the council.
Auckland Mayor Wayne Brown (left) wants help from Transport Minister Simeon Brown (right) to take control of Auckland Transport.
This has been a source of frustration for the mayor, who has told the Herald the only real power the council has is to change the board.
“We’ve tried that. It’s not effective because the culture of independence is so deeply embedded. That’s not a reflection on individuals. The problem is a badly designed system and a legal framework that is not fit for purpose,” he said.
Spokespeople for AT and Panuku declined to comment, referring the Herald to the mayor’s office on the issue.
A mayoral spokesman said Brown would first discuss the draft mayoral proposal with councillors before commenting to the media.
“However, it will be consistent with the positions the Mayor campaigned on in 2022,” the spokesman said.
The Herald is seeking comment from Simeon Brown and TAU.
Bernard Orsman is an award-winning reporter who has been covering Auckland’s local politics and transport since 1998. Before that, he worked in the parliamentary Press Gallery for six years.
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