Auckland Mayor Phil Goff is proposing to close the council body that manages its shares in Auckland Airport and Ports of Auckland as part of his 10-year budget.

Auckland Council Investments Ltd (ACIL), a council-controlled organisation (CC0), manages $2.3 billion of assets and operates with a skeleton staff made up of chief executive John Crawford and an executive assistant.

In his mayoral proposal for the budget, Goff said he has asked about the possibility of disestablishing the CCO, which would save about $1 million a year.

"I support transferring the Auckland International Airport shares and Ports of Auckland shares to council parent to directly own.

Advertisement

"Aside from the immediate cost savings, other benefits include the potential for closer collaboration with the council group in procurement and services, likely easier execution of any future port decisions and a better understanding of the port's business by the governing body," he said.

ACIL was set up at arm's length from the council to protect Ports of Auckland from political interference and ensure it operated along commercial lines.

Goff said this should be protected through an agreed Memorandum of Understanding setting out communication protocols, the board appointment process, clear delineation and a dispute resolution protocol.

In the last financial year, ACIL posted a record profit of $138.2m and paid a dividend of $85.9m to council.

ACIL would reduce the number of CCOs to five - Auckland Transport, Watercare, Auckland Tourism, Events and Economic Development (Ateed), Regional Facilities Auckland and Panuku Development Auckland.

Panuku was established in September 2015 as an urban regeneration agency from the merger of Auckland Council Property Ltd and Waterfront Auckland.

Goff will table his draft 10-year budget at a governing body meeting at 1.30pm today. The 21-strong governing body will make decisions on the proposals next month before public consultation in March next year. The budget will come into effect in July next year.