Council-controlled organisations (CCOs) are organisations in which the council controls 50 per cent or more of the votes or has the right to appoint 50 per cent (or more) of directors or trustees.
A substantive CCO is a CCO that is either responsible for the delivery of a significant service or activity on behalf of Auckland Council, or owns or manages assets with a value of more than $10 million.
Auckland Council has six substantive CCOs:
While each CCO has its own specific objectives, the Local Government Act 2002 identifies the principal objective of all CCOs. In summary, this is to:
- achieve the objectives of its shareholders, both commercial and non-commercial as specified in the statement of intent
- be a good employer
- exhibit a sense of social and environmental responsibility by having regard to the interests of the community in which it operates and by endeavouring to accommodate or encourage these when able to do so; and
- conduct its affairs in accordance with sound business practice.
The overall direction for CCOs is set in line with the Auckland Plan, the council’s long-term plan, including the CCO Accountability policy, which sets how the council will hold its CCOs accountable for meeting its objectives and priorities for them.
The council also has a number of legacy CCOs.
Governance of CCOs
CCOs are governed by their boards of directors or trustees, and operate at arm’s length to the council.
In the 2016-2019 electoral term, several council committees review the performance of the CCOs and the projects governed by their boards. Those committees are:
- The Appointments and Performance Review committee. This committee has the authority to appoint the directors, chairs and deputy chairs of CCO boards. It also approves policy related to CCO and CO board appointments.
- The Finance and Performance committee. This committee approves the Letter of Expectation, the Statement of Intent and any reporting against the SOI. It sets the level of ratepayer funding given to CCOs to carry out their activities and approves policy (other than director appointment policy) relating to CCOs. ACIL would also report any project specific issues to this committee.
- The Planning Committee. Panuku Development Auckland, Watercare and Auckland Transport will report on specific projects to this Committee.
- The Environment and Community committee. Auckland Tourism, Events and Economic Development (ATEED), Regional Facilities Auckland (RFA) will report on specific projects to this committee.
The public are able to provide input to the board's consideration of its statements of intent (SOIs) at meetings, which the CCOs must hold in public. The public meeting to discuss the council's comment on the draft SOI for the following year must be held before 30 June each year. The second public meeting must be held after 1 July each year, where the board will consider the CCOs performance under its SOI in the previous financial year.
In December 2015, Auckland Council published guidelines for the governance of its Substantive CCOs. These are available in the Governance Manual for substantive CCOs (PDF 12.7MB). These guidelines will be reviewed periodically with input from the CCOs.
Auckland Council undertook a review of the CCOs. This review was finalised in 2015. Read more about the review.