14.1. The purpose of this chapter is to describe the primary characteristics of the proposed Auckland Council. The Commission envisages that its proposal to establish a district and a region called Auckland and an Auckland Council will be enacted in a separate piece of legislation to be called the Auckland Act, which will sit alongside the Local Government Act 2002 (“LGA 2002”). This legislation, and more detailed design features for the Auckland Council, are described in subsequent chapters.
14.2. The Commission proposes the dissolution of the Auckland Regional Council (“ARC”) and all seven territorial authorities existing in Auckland, and the creation of a new entity called the Auckland Council. The Auckland Council will be a local authority under the LGA 2002. It will also be a unitary authority under that Act, the Resource Management Act, and the Land Transport Management Act.
14.3. In practical terms, the establishment of a single unitary authority will bring about two changes. First, the Auckland Council will constitute a single territorial authority, replacing the existing city and district councils in the region. Second, the regional council responsibilities currently exercised by the ARC will be exercised by the Auckland Council in combination with its territorial authority functions.
14.4. In other words, the Auckland Council will have all the responsibilities, duties, and powers of both a regional council and of a territorial authority over the whole of the Auckland region. Despite the single organisational structure of the Auckland Council, its statutory responsibilities, duties, and powers in its capacity as a regional council will be quite separate and discrete from its statutory responsibilities, duties, and powers in its capacity as a territorial authority.
14.5. Unitary authorities are not a new concept. Gisborne, Marlborough, Nelson, and Tasman regions have unitary authorities.
14.6. The Commission is not proposing to strengthen any existing entity, such as the ARC, to form the Auckland Council, but recommends instead the creation of an entirely new entity. The Commission considers that the ARC’s history as a regulatory, rather than an operational and service-delivery organisation, would not equip it well to assume new responsibilities for the region, particularly in relation to pursuing economic growth.
14.7. The establishment of a unitary authority is intended to address problems of fragmented regional governance identified in Chapter 11, “Defining the Problems”, and to provide the capacity for improved coordination with central government. A new Auckland-wide entity will provide for much more decisive and visible leadership, and allow for long-term planning and more efficient use of public resources and infrastructure investment. A subsidiary benefit will be some savings in operating and capital costs as set out in Chapter 32, “Achieving a High-Performance Auckland Council”.
Comparison of present governance system with proposed system
14.8. Figure 14.1 shows the changes from the current state which will result from the establishment of the Auckland Council.
14.9. The boundaries of the Auckland Council are discussed in Chapter 18, “Boundaries”. In brief, the boundaries of the Auckland Council will be largely the same as those of the current ARC, with the exception of some significant changes to the southern boundary.1
14.10. While being a single local authority under the LGA 2002, the Commission proposes that, politically, the Auckland Council will have representation at two levels – Auckland-wide and local. It proposes that there will be an Auckland Council, elected on an Auckland-wide basis, and six local councils, elected locally.
14.11. Local councils will share the governance of Auckland with the elected Auckland Council but will be subsidiary to it. They will not be separate local authorities under the LGA 2002 and, as such, will not have their own power of competence. Their powers and functions will be limited to those specified in legislation or delegated by the elected Auckland Council. They will have no ability to set rates or to hold assets, and all their staff will be employed by the Auckland Council. They will have a broader role and wider responsibilities than community boards but will retain a strong focus on community engagement.
14.12. The provision made by the Commission for representation and delivery at regional and local levels (within a single overall structure) is consistent with principles articulated by the Commission relating to cost effectiveness, transparency and accountability, and responsiveness.
14.13. The name Auckland Council is used in this report in two senses: “Auckland Council” is the name of the unitary authority described above, which is the “body corporate with perpetual succession” in terms of the LGA 2002, section 12. It will be the legal entity through which local government in Auckland is carried out. For example, all property will be held in the name of the Auckland Council. “Auckland Council” is also the name of the elected body that governs the Auckland Council.
14.14. The use of the same name for both the body corporate and the elected assembly that governs the body corporate has been a feature of local government in New Zealand since 1974. It causes no practical problems, but can occasionally be confusing in descriptive reports such as this. To help readers, this report makes reference to the elected body as the “elected Auckland Council”, where there is a need to distinguish it from the body corporate.
14.15. The elected Auckland Council will comprise 23 councillors and a mayor. Councillors will be elected partly at large and partly on the basis of wards. Māori will have safeguarded representation, in order to provide for Māori input to decision making consistent with the relevant principle of the LGA 2002.2 As noted in Chapter 22, “Māori”, there will be two Māori councillors elected by voters on the Māori electoral roll. A third Māori councillor, who will be a representative of mana whenua in Auckland, will be appointed by the Mana Whenua Forum.
14.16. The Mayor of Auckland will be the sole mayor in the Auckland region. The Mayor of Auckland will be elected at large, and will have additional powers, so that he or she can exercise strong but accountable leadership. As discussed in Chapter 19, “Leadership”, these powers will include the ability to appoint the deputy mayor and committee chairs, to propose the budget, and to establish and maintain an appropriately staffed Mayoral office.
14.17. The elected Auckland Council will undertake much of its work in committees, as described in Chapter 15, “The Elected Auckland Council”. It will be assisted by a number of panels of experts, including Pacific, ethnic, and other advisory panels.
14.18. All of the Auckland region will be in the territory of one or another of the six local councils with the exception of the central city and waterfront area, which will have a direct governance relationship with the Auckland Council, as described below. Local councils will vary in size, from seven councillors in Hunua and Rodney to 22 in Tāmaki-makau-rau, reflecting the size of the population served by those councils.
14.19. The boundaries of the new local councils will be centred (with some important boundary adjustments) on the existing council territories of Rodney and Franklin Districts and North Shore, Waitakere, Auckland, and Manukau Cities, thus enabling new local councils to utilise existing infrastructure and service centres.
14.20. In setting proposed sizes for urban local councils, the Commission has sought to achieve a representation ratio of at least one councillor for every 20,000 people, to assist in achieving improved local engagement. It is expected that as the population grows, the number of councillors (and wards) will grow in order to ensure that an appropriate ratio between councillors and population represented is maintained. Depending on the pattern of growth in Auckland, it may be necessary in future to create additional local councils.
14.21. Local councillors will be elected on a ward basis and will appoint a chair from amongst their number in the manner described in Chapter 16, “Local Councils”.
14.22. For the reasons set out in Chapter 13, “Alternative Models for Reform”, the Commission is not recommending the continuation of community boards other than those for Waiheke and Great Barrier Islands, and for the city centre and waterfront area.
14.23. The Auckland Council will not be precluded from deciding in future to create additional community boards in accordance with the procedures under the LGA 2002.
14.24. The detailed allocation of Auckland Council responsibilities, duties, and powers between the elected Auckland Council and local councils is addressed in subsequent chapters3 and in the draft Auckland Act in Chapter 31, “Statutory Reform”.
14.25. The functions of the elected Auckland Council will include
14.26. Some of these functions will be carried out via council-controlled organisations (“CCOs”) and some may be delegated to local councils.
14.27. Local councils’ role will centre on service delivery at the local level and local engagement and place-shaping. Local council functions will include
14.28. Local councils will also have input into decisions of the elected Auckland Council on region-wide plans, policies, and service standards.
14.29. Both the elected Auckland Council and the local councils will have responsibility for public engagement on matters within their jurisdiction. Communication of the decisions they have made and consultation on future plans will be important for both tiers, although they will address different matters. Each council will conduct its public engagement in ways appropriate to its role.
14.30. Particular governance arrangements will apply to the city centre and waterfront area (defined in Chapter 18), reflecting the importance of this area. There is to be a committee of the Auckland Council, chaired by the mayor, which will make policy regarding the city centre and waterfront area. It will co-opt to its membership representatives of business, education, cultural, and not-for-profit sectors.
14.31. There will also be a community board for the city centre and waterfront area. The community board will have powers delegated to it by the Auckland Council. It will be responsible for the provision of local services including road maintenance, waste collection, and parks. The chair of the community board will be a voting member of the Auckland Council committee referred to above.
14.32. Any future development of the waterfront area should be carried out by a stand-alone development agency with the capacity to implement a “master plan” for the area and its interface with the city centre. The structure and functions of this agency will be determined in consultation between the Auckland Council and the Government. One option could be a CCO of the Auckland Council; another may be a joint venture between Auckland Council and Government.
14.33. These matters are discussed further in Chapter 17, “City Centre and Waterfront”.
14.34. The Auckland Council will comprise a single organisational structure, with a single staffing and management structure. All staff will be employed by the Auckland Council, although staffing and management structures will need to be created to provide dedicated support at both the regional and local levels of the Auckland Council.
14.35. The Auckland Council will employ one chief executive officer, who will in turn employ all of the other council staff at both the regional and local level, including a local council manager for each local council.
14.36. The benefits of establishing a single employer for all local government staff in Auckland include
14.37. Even though staff might work for a particular local council or for the elected Auckland Council, there should be opportunities to move between roles in a career service. The Commission also envisages that staff will be provided with training, mentoring, and opportunities for progression to assist them to build careers.
14.38. The Commission anticipates that the elected Auckland Council will have a symbolic presence at the Auckland Town Hall. This might be the venue for meetings of the elected Auckland Council and may house at least some Auckland Council staff.
14.39. The Commission expects that there will be at least one service centre for each local council, which will be the venue for local council meetings and the office for staff exclusively assigned to the local council. The Establishment Board will need to identify appropriate locations and offices to meet the needs of the Auckland Council, including local council offices and service centres.
14.40. The local council service centres will also accommodate some staff performing functions not delegated to the local council, especially those who spend part or all of their working day in the field. It will often be efficient for them to be decentralised so as to reduce travel time and cost. For example, the Commission suggests that staff working on contract management of arterial roads, regional pest management, regional parks, and property might work efficiently from the local service centres. This will also assist staff to have good local knowledge and be more directly accessible to the local public.
14.41. There are currently over 40 CCOs and other special-purpose bodies created by the eight Auckland councils, operating at arm’s length. These will be transferred to the Auckland Council on establishment. An important first task for the Auckland Council will be to decide on the future of the existing council organisations, CCOs, and council-controlled trading organisations, drawing on analysis and advice to be prepared for it by an Establishment Board which will work to prepare for the Auckland Council.
14.42. Chapter 21, “Council Organisations and Council-Controlled Organisations”, identifies the need for at least five Auckland Council infrastructure CCOs, responsible for managing water and wastewater services, transportation services, and solid waste, and in due course, urban development, and the city centre and waterfront development. It is also expected that some CCOs, for example Auckland Regional Holdings, will be retained (it is anticipated that Auckland Regional Holdings will be the primary investment vehicle for the Auckland Council, with a commercial board).
14.43. Consistent with existing law and governance practice, CCOs will have their own staff, rather than being staffed by Auckland Council personnel. Each CCO board will appoint a chief executive, who will in turn appoint the CCO’s staff.
14.44. The Commission considers that the proposed model represents a reasonable and workable balance in terms of the principles articulated in Chapter 12, “Guiding Principles for Shaping Auckland Governance”. It will produce the following main advantages:
14.45. Overall, the proposed new structure will result in significant streamlining of existing systems. The changes from the current state are summarised in Table 14.1.
Table 14.1 Changes from the current state through formation of a single unitary council
| Current state | Future state |
| 7 territorial authorities 1 regional council |
1 unitary council with 6 local councils |
| 1 chair elected by (regional) council | 1 Mayor of Auckland elected at large |
| 7 mayors elected at large, within cities and districts | 6 local council chairs elected by local councils |
| 13 regional councillors | 23 Auckland councillors (including Māori) |
| No guaranteed Māori representation | 1 Auckland councillor appointed by mana whenua, 2 councillors elected by voters on the Māori electoral roll |
| 96 territorial authority councillors | 77 local councillors1 |
| 30 community boards 145 members |
3 community boards 16 members |
| 8 LTCCPs | 1 LTCCP |
| 7 district plans | 1 district plan |
| 2 rates bills | 1 rates bill |
| 8 rating authorities | 1 rating authority |
| 9 data (IT) centres | 1 data centre |
| 8 local transport entities | 1 transport agency |
| 5 water and wastewater operators | 1 water and wastewater operator (with Papakura operating under contract on an interim basis) |
Notes: 1 See Table 16.1 for full details (77 members plus chairs). IT, information technology; LTCCP, long-term council community plan.
14A A unitary authority, to be called the “Auckland Council”, should be formed to assume all local government responsibilities in the Auckland region.
14B When the Auckland Council is established, the following existing local authorities should be abolished:
14C The Auckland Council should operate and have representation at two levels: the elected Auckland Council, and six local councils.
14D All local councils should be given Māori names. These should be determined by the Local Government Commission after consultation with mana whenua, with the new Māori names used by the Commission being the suggested starting point for consideration. The interim names of the six local councils should be
14E The Auckland Council should comprise a single organisation, with a single staffing and management structure. The Auckland Council should employ one chief executive officer, who will employ all other council staff (but not staff of council-controlled organisations) at both Auckland and local levels, including local council managers for each local council.
14F Staff from the eight abolished councils should be transferred to the Auckland Council, at least initially.
14G Local councils should share the governance of their areas with the Auckland Council but will be subsidiary to it.
14H The Mayor of Auckland should preside over the Auckland Council. The Mayor should be elected at large by the electors of Auckland.
14I The Auckland Town Hall should be the symbolic centre for the Auckland Council.
14J When the Auckland Council is established, all existing community boards within the territories of the abolished local authorities, except for the Waiheke and Great Barrier Island Community Boards, should be abolished. A new City Centre and Waterfront Community Board should be established.
14K The assets and liabilities of abolished territorial authorities and of the Auckland Regional Council should be transferred to Auckland Council. However, a fair apportionment of the assets and liabilities of the Franklin District Council and Auckland Regional Council should be made between the Auckland Council, the Waikato District Council, and the Waikato Regional Council, to reflect the boundary changes proposed by the Commission; such apportionment to be made in accordance with the Local Government Act 2002, Schedule 3, clause 69.
14L All existing interests in council organisations, council-controlled organisations, and exempt organisations held by current councils should be transferred to the Auckland Council on the establishment date.
Transition14M The Establishment Board should develop the proposed structure of the elected Auckland Council and local councils (including the committee structure and advisory panels and groups).
14N The Establishment Board should develop the proposed organisational structure of the Auckland Council. This will include defining the key roles and positions
14O The Establishment Board should review the functions and activities currently carried out by the Auckland Regional Council and seven territorial authorities, identifying those that will continue to be carried out by local councils, and those relevant functions and activities to be undertaken directly by the Auckland Council.
14P The Establishment Board should determine the location of council offices (particularly Auckland Council, and Tāmaki-makau-rau and Rodney Local Councils) and service centres.
1 As explained in Chapter 18, “Boundaries”, the Auckland Council will in fact have two slightly different sets of boundaries in its capacities as a regional council and a territorial authority respectively. Regional council boundaries extend beyond the coast to the 12-nautical-mile limit, while territorial boundaries follow the coastline (but include some bays and harbours).
2 LGA 2002, section 14(1)(d).
3 See Chapter 15, “The Elected Auckland Council” and Chapter 16, “Local Councils”.
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