Mayor Brown: CCO Reform Election Promises

27 January 2025. When Wayne Brown campaigned to become Auckland Mayor in 2022 he stood on a platform which included “taking back control of council organisations”.

On arriving in the Mayor’s office, he was confronted with the Auckland Council’s budget hole of $295 million.

It took a bit of work but Mayor Brown came up with a plan that was supported by councillors to address this shortfall and to get things back on track without imposing huge rate increases on property owners.

Now it is time to get on with restoring democratic accountability over the very organisations (Council Controlled Organisations or CCOs) Auckland Council is supposed to run – Auckland Transport, Eke Panuku (property development), and Tataki Auckland Unlimited (economic development).

In this year’s council budget setting process this is exactly what is being proposed to Aucklanders – bringing back democratic accountability while tackling inefficient decision-making and wasteful spending.

There are long-standing issues with the CCO model that have allowed these organisations to make decisions, and spend money, in a way that causes concern and confusion among those picking up the bill – the ratepayer – with very little scrutiny.

We need to make structural and cultural change to remove inefficiencies, poorly aligned strategies and to strengthen democratic accountability.

This will improve public trust and confidence, cost effectiveness and overcome the duplication of services funded by the ratepayer.

CCOs absorb over half of Auckland Council’s annual operating budget of around $6.4 billion and control two-thirds of the region’s publicly owned assets, valued at almost $47 billion.

They are 40% funded from all the rates collected. There is no plausible argument for the people elected by the public to not have proper oversight of these organisations.

Mayor Brown is proposing Auckland Transport (AT) to be put on a short leash while he continues positive discussions with the Government about the legislation required to make the desired changes.

Meantime, he has proposed immediate steps to begin the process of taking back power from AT. These measures include for Auckland Council to assume control of AT’s back-office functions.

This means Auckland Council taking back responsibility for all regulatory, policy and strategic planning functions for which AT does not have a statutory role controlling.

Unlike Auckland Transport, Eke Panuku and Tataki Auckland Unlimited. do not require a change legislation to bring them back under Council.

Eke Panuku will be disestablished, with urban regeneration and property management coming back in-house under council control.

All policy, strategy and planning functions would also return to the council, with local boards having greater decision-making power over local urban amenity projects, like playgrounds and street improvements, so there is a community-focused approach.

Tataki Auckland Unlimited will be retained to manage regional facilities, Auckland Art Gallery, Auckland Zoo, theatres and stadiums.

However, economic development, destination marketing and major events would be consolidated within the council.

These are sensible changes that allow representatives elected by the people to have proper oversight of what is happening with public money.

This will all be happening early this year.