Phil Goff's review of council-controlled organisations costing up $800,000

One of Phil Goff's few election promises was a review of council-controlled organisations. Photo / Sylvie Whinray

Auckland Mayor Phil Goff's independent review of the five council-controlled organisations will cost ratepayers up to $800,000.

The review was one of Goff's few election promises for a second term and follows growing frustrations by Aucklanders at the behaviour of the CCOs, and Auckland Transport in particular.

Goff has been tearing his hair out at concerns about whether CCOs can be held accountable, putting them on notice they could be abolished or downsized this term.

On Tuesday, the governing body will consider draft terms of reference that focus on three key areas - the effectiveness of the CCO model, the accountability mechanisms between CCOs and council, and the culture of CCOs.

The wide-ranging review has a tight timeframe to be completed by the end of July next year to allow time for any changes to be considered in the new 10-year budget in 2021. The appointment of the three-member panel is set down for next month.

The five CCOs - Auckland Transport, Watercare, Auckland Tourism, Events and Economic Development (Ateed), Regional Facilities Auckland and Panuku Development Auckland - account for 55 per cent of the council's operational budget.

St Heliers residents slammed plans for safety improvements by Auckland Transport this year. Photo / Herald

Last month, Goff blew his top when the Herald reported the unelected directors of CCOs had dished out $1.1 million in bonuses to senior executives in the last financial year, saying the practice had to stop.

Panuku chief executive Roger MacDonald got an $82,500 pay rise approved by the board last year, most of that by way of a bonus.

This month, MacDonald resigned, two weeks after going on leave suddenly after hitting the headlines over several matters, including the bonus and a helicopter trip to the Bay of Islands.

It is understood Goff had not had confidence in MacDonald for some time.

The cost of Goff's CCO review has been estimated at between $500,000 and $800,000.

Panuku chief executive Roger MacDonald's pay rise and bonus raised eyebrows this year. Photo / Panuku

The governing will also consider how to allocate $2.56 million for councillors based on a determination from the independent Remuneration Authority.

Under a proposal, job roles get increases of between 1 per cent and 24 per cent.

Deputy Mayor Bill Cashmore's salary rises from $160,606 to $165,582, chairs of main committees rise from $132,579 to $138,912 and other councillors get paid between $113,000 and $125,000.

The previous base salary for a councillor was $111,901.

The biggest percentage pay rise goes to audit committee chairwoman Linda Cooper, up 24 per cent, or $27,000, from $111,901 to $138,912.

Goff's new salary of $296,000 is set separately by the authority. It was previously $285,041, a rise of 3.8 per cent.