Auckland councillors today unanimously agreed to progress all 64 recommendations made in a review of its council-controlled organisations, which included the proposal to merge Auckland’s economic development and facilities arms.
The merger of Regional Facilities Auckland and Auckland Tourism, Events and Economic Development (ATEED) is expected to save ratepayers up to $5 million to $7 million a year . Councillors expected the cost savings would offset the establishment costs of the merger.
The entity is expected to be established by December 1 this year, with both entities agreeing the merger would “deliver great outcomes for Auckland”.
The merger would keep other organisations handled by Regional Facilities Auckland, such as Auckland Zoo and Eden Park, in their current form.
The merged entity would continue to deliver all the activities and functions currently provided by the two CCOs, with their existing budgets combined.
There have been 64 recommendations made after a review of the council-controlled organisations. (Source: Other)
Other recommendations of the report included a clearer plan on how climate policy would be enacted in Auckland, lower road speed limits and work out a strategy for Auckland’s stadiums.
The review's release follows Auckland Council’s passing of its Emergency Budget in July in response to the Covid-19 pandemic. The Budget increased overall rates by 3.5 per cent.
It also saw the council lay off 600 temporary staff, with the equivalent of 500 full-time permanent staff also set to go.
The Budget aimed to help plug the council’s $750 million fiscal hole following the pandemic.
The review also comes as Auckland continues to face a severe water shortage, and Raveen Jaduram, former CEO of CCO Watercare, resigned while under fire over his $775,00 salary.
Mayor Phil Goff said the review showed “there was significant room for improving the council’s relationship with and oversight of the CCOs”.
“Progressing the review’s recommendations will help increase council’s oversight and strategic direction of the CCOs, improve their performance on behalf of Aucklanders and ensure they are operating effectively and efficiently.”
Mr Goff called for the independent review after his re-election last year, which was undertaken by chairperson Miriam Dean QC and panellists Doug Martin and Leigh Auton.
Twenty-five of the recommendations will be started over the next 6 months, while others requiring further analysis would progress through the 10-year Budget process, with input from CCOs, local boards and the public.
A detailed work programme for implementing the recommendations is expected within three months.
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