Volume 1: Report

PART ONE: INTRODUCTION

PART TWO: SETTING THE CONTEXT

PART THREE: VISION FOR AUCKLAND

PART FOUR: STRUCTURAL REFORM

PART FIVE: PRACTICAL SOLUTIONS TO PRESSING PROBLEMS

PART SIX: MAKING THE CHANGES

APPENDICES

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PART FOUR: STRUCTURAL REFORM

11.Defining the Problems

12.Guiding Principles for Shaping Auckland Governance

13.Alternative Models for Reform

14.The Auckland Council: Key Features

15.The Elected Auckland Council

16.Local Councils

17.City Centre and Waterfont

18.Boundaries

19.Leadership

20.Funding and Financial Management Arrangements

21.Council Organisations and Council-Controlled Organisations

22.Māori

23.Representation and Participation by Minority and Other Groups

15. The Elected Auckland Council

15.1. This chapter examines in detail the role and structure of the elected Auckland Council, and the responsibilities and duties it will discharge. It also discusses the important role of the chief executive officer and other staff who provide services to the Auckland Council. Local councils are the subject of the next chapter.

15.2. As noted in the previous chapter, both the elected Auckland Council and the local councils will form part of a single body corporate (“the Auckland Council”) but will have distinct functions.

15.3. The elected Auckland Council will operate at a strategic, Auckland-wide level. The local councils will be responsible for local place-shaping and local service delivery. The local councils will have functions specified in legislation and such additional responsibilities as may be delegated by the elected Auckland Council.

15.4. Achieving a clear definition of the roles of the elected Auckland Council and local councils is necessary to achieve the Commission’s reform objectives, including greater transparency and accountability. It is intended to ensure that the elected Auckland Council remains focused on matters of regional importance and is able to provide strategic governance, while local councils focus on matters of local importance.

15.5. The elected Auckland Council will manage issues that are uniform across the whole region. It will also lead and speak for Auckland, both in discussions with central government, and internationally. The Auckland Council will command attention not only because of its scale but also because it will speak with authority as the single voice of Auckland, and will have the power to implement its undertakings and agreements with other parties. It will be credible because it will be seen to be well organised, and because of the actions it takes, the precedents it sets, and the financial, economic, social, and political impact that it carries.

Council membership and group structure

15.6. As noted in the previous chapter, the elected Auckland Council will comprise the mayor and 23 councillors, to be elected or appointed as follows:

15.7. Arrangements for Māori representation are discussed in Chapter 22, “Māori”. The comparative merits of ward-based and at-large representation are discussed in Chapter 13, “Alternative Models for Reform”, with the Commission proposing a mix, as outlined above. It is anticipated that the ward boundaries for the Auckland Council will be defined by the Local Government Commission in accordance with the Local Electoral Act 2001. Chapter 18, “Boundaries”, provides further guidance on how these ward boundaries might be set, consistent with the objectives stated in that Act of securing fair representation.2

15.8. The Mayor of Auckland will lead the elected Auckland Council. The Mayor of Auckland will be the sole mayor in the Auckland region, and will speak for Auckland both nationally and internationally. The Mayor will be directly elected and will have the additional powers outlined in Chapter 19, “Leadership”.

Council committees

15.9. It will be a matter for the Auckland Council to decide finally what committees it needs in order to work efficiently, and how frequently each of those committees need to meet. As a starting point, the Commission envisages that the elected Auckland Council will have standing committees to address the following areas of responsibility:

15.10. The proposed committee structure, and terms of reference and delegations for each committee, will need to be considered by the Auckland Council soon after its commencement. In order to position the Auckland Council to take early decisions in relation to these matters, it is proposed that the Establishment Board prepare for the council a draft committee structure, draft terms of reference for each committee, and a shortlist of potential non-councillor members who might be co-opted to serve on relevant committees, as discussed below.

15.11. It is expected that some committees – the city centre and rural committees are examples – will co-opt non-voting members to ensure particular skill and knowledge is brought to the council table.3 It is anticipated, for example, that the City Centre and Waterfront Committee will include representatives from business, educational, and not-for-profit sectors (see Chapter 17, “City Centre and Waterfront”). In the case of the Rural Committee, representatives of relevant interests such as farming, conservation, and the rural local councils might be co-opted.

Advisory groups

15.12. The Commission proposes that various other groups will assist the Auckland Council in an advisory capacity. These include panels to advise the council on appointments (for example directorships), Pacific Island issues, ethnic issues, economic development, urban design, heritage, arts, and recreation. The Commission is also proposing an officials’ Social Issues Advisory Group to support the Social Issues Board. These advisory groups are described below and in Chapters 23 (“Representation and Participation by Minority and Other Groups”), 7 (“Economic Development”), 8 (“Environment, Urban Design, and Heritage”), 10 (“Culture, Recreation, and Diversity”), and 9 (“Promoting Social Wellbeing”), respectively. The Auckland Council may wish to establish other advisory panels in the future, for example, a group representing the interests of older people.

15.13. It is proposed that the Appointments Advisory Panel will assist the Auckland Council with the recruitment of directors and representatives to serve on council organisations, and with other appointments to outside external bodies, such as the governing bodies of museums and trust boards. It is expected that these positions will generally be advertised in accordance with the requirements of the Local Government Act 2002 (“LGA 2002”).4 The panel will also assist with the appointment by the council of co-opted members of council committees, advisory panels, groups, and boards. The Appointments Advisory Panel will be composed of a range of prominent and able people, from sectors including business professions, education, and not-for-profit, who will be able to provide independent advice to assist in the identification and recruitment of professionally qualified directors and advisers.

15.14. As outlined in Chapter 33, “Managing the Transition”, the Establishment Board will appoint an interim Appointments Advisory Panel. The interim panel will assist the Establishment Board to review current council advisory panels and groups in order to advise the Auckland Council on which should be continued. It is anticipated that the interim panel will also assist with the preparation of draft terms of reference for new and continuing advisory panels, and the identification of potential candidates for membership of the advisory panels and groups, relevant council committees, and boards identified in this report.

Forums

15.15. The Commission also proposes that the Auckland Council participate in decision-making forums, including the Social Issues Board, Hauraki Gulf Forum, the joint co-management regime for the Kaipara Harbour, and inter-regional cooperation mechanisms.5

15.16. The Mana Whenua Forum is an existing group described in Chapter 22, “Māori”. The Commission expects it will have a role in relation to guardianship of land and the environment. The Mana Whenua Forum will not have a direct relationship with the council but will exercise its role through its representative on the Auckland Council who will participate directly in Auckland Council decision-making. The forum will appoint one representative of mana whenua to serve as a councillor on Auckland Council. It will also appoint the members of Watercare’s Māori Advisory Group. These roles are discussed in more detail in Chapter 22, “Māori”, and Chapter 26, “The Three Waters”.

Council organisations

15.17. It is expected that a number of the service delivery functions of the Auckland Council will be carried out by council-controlled organisations (“CCOs”).

15.18. As discussed in Chapter 21, “Council Organisations and Council-Controlled Organisations”, the Commission has identified six potential CCOs to provide services in relation to water, transportation, solid waste, arts and recreation facilities, and, as required, urban development and waterfront development.

15.19. It is also expected that Auckland Regional Holdings will be retained as a CCO, as discussed in Chapter 21.

15.20. The Commission expects that council organisations will generally report to the Auckland Council through standing committees. The Infrastructure Committee, for example, will have a close working relationship with the Regional Transport Authority (the proposed successor to the Auckland Regional Transport Authority), as explained in Chapter 25, “Transport”.

15.21. An overview of the Auckland Council group structure is illustrated in Figure 15.1. It shows the following:

figure_15.1

Box 15.1 Auckland Council functions

Regional policy-making functions Regional network/service delivery functions Administrative services
1 Transport planning
includes public transport, road and rail planning, RTA
2 Metropolitan planning
regional growth, spatial planning, MUL
coordinate with other regions
3 Economic development
infrastructure development
tourist promotion, branding, broadband, business, and film support
4 Environmental planning
regional policy statement
coastal, air, and water controls, pollution, soil conservation, climate change
hazards management
urban design
heritage conservation (natural and cultural)
5 District plan making under RMA
6 Energy advocacy, security of supply
7 Participation in the Social Issues Board and the Social Issues Advisory Group
8 Education advocacy
tertiary education and skills needs
9 Arts and culture advocacy and funding
10 Recreational planning
11 Regional parks
12 Hauraki Gulf Forum
13 Other regulatory matters.
14 Planning applications and consents outside MUL, except for consents delegated to local councils
15 Civil defence emergency management, rural fire
16 Regional promotion of sport and physical activity
17 Biosecurity
18 Harbourmaster
19 Arterial road construction and maintenance
20 Water, wastewater, stormwater, and rural drainage
21 Solid waste management
22 Urban redevelopment
23 Zoo
24 Regional parks
25 Regional facilities for sports, culture, entertainment: art galleries, museums, theatres, stadiums, arena
26 City centre and waterfront
27 Monitoring, data collection and analysis, reporting on all functions
28 Libraries
29 Swimming pools
30 Housing (interim arrangements subject to decisions by the Social Issues Board)
31 Cemeteries and crematoria
32 Discharge of regulatory functions.
Delegation of functions to local councils
The Auckland Council may delegate any of its functions except
regional policy-making functions
power to make or levy rates
power to make a by-law
power to make a regional or district plan or make plan changes.

33 Consult with local councils about budgets, receive funding recommendations from local councils, undertake financial management services
34 Prepare LTCCP and annual plans and administer associated statutory processes
35 Make and administer rates for Auckland Council and local councils
36 Provide shared service centres and administration for regional and local councils
37 Asset and liability management
38 ARH, investment management
39 Public information services
40 Oversee local councils, set performance criteria, monitor performance, issue policy directions
41 Direct local councils on matters affecting regional functions
42 Monitor local councils’ performance of delegated functions.

ARH, Auckland Regional Holdings;
RTA, Regional Transport Authority;
LTCCP, long-term council community plan;
MUL, metropolitan urban limit; RMA, Resource Management Act.

Council functions

15.22. The elected Auckland Council will be the governing body of the Auckland Council under the LGA 2002, and will exercise all the duties and powers of the Auckland Council in its capacity as a local authority under that Act and other applicable legislation.6 For this reason, in contrast to local councils, the Commission does not consider it necessary to specify the functions of the elected Auckland Council in legislation beyond the broad mandate stated for local authorities generally in the LGA 2002.

15.23. An illustrative, non-exhaustive list of the responsibilities to be exercised by the elected Auckland Council is set out in Box 15.1. The Commission envisages that some of those responsibilities could be carried out via council organisations and council-controlled organisations, but that would be a matter for the elected Auckland Council to determine.

15.24. The three categories of functions in Box 15.1 are briefly described below, and in more detail in chapters relating to social issues, shared services, transport, planning, water, solid waste, and civil defence emergency management.

Regional policy and plan making

15.25. The elected Auckland Council will set policy for all aspects of local government in Auckland.7 For the first time in Auckland, related functions will be brought together. For example, the Auckland Council will be able to develop both transport and land use strategies. These functions are related and interdependent, and there will be significant benefits to the citizens of Auckland in bringing them together.

15.26. The elected Auckland Council will also have an advocacy function for Auckland that extends beyond issues where it has direct powers, for example it will be an advocate in relation to social well-being, security of electricity supply, and installation of broadband.

15.27. As emphasised elsewhere in this report, an integrated approach to Auckland’s governance is essential. The Commission recommends that this should be achieved through a hierarchical system of plans, which are few in number and closely interlinked. There will be a single long-term council community plan (“LTCCP”) for all activities of the Auckland Council and local councils, and an overarching spatial plan that coordinates plans for growth, economic development, and social well-being. This is described further in Chapter 24, “Planning for Auckland”. Local councils will have input into the content of policies and plans, but the elected Auckland Council will make the final decisions.

15.28. The spatial plan and infrastructure investment plan should inform Auckland’s social and economic strategies, the regional policy statement and district plan developed under the Resource Management Act 1991, and specific service delivery strategies. The relationships between these plans is summarised in Figure 15.2. The Auckland Council should move swiftly to develop these plans, using as a basis existing work including One Plan, the Auckland Regional Economic Development Strategy, and work under way on the new regional policy statement, regional land transport strategy, Auckland Transport Plan, and existing district plans.

figure_15.2

Regional network and service delivery

15.29. The elected Auckland Council will be responsible for region-wide network services, including the arterial road network, water collection and supply, wastewater treatment, and solid waste management. As noted above, some networks might be managed by council-controlled organisations or council organisations, but the elected Auckland Council will be responsible for strategic direction.

15.30. Local service delivery will be primarily a function of local councils. Some local services may require a high degree of local differentiation. It will be important to ensure that there is no overlap of service provision functions between the elected Auckland Council and local councils.

Administrative services

15.31. The Auckland Council will provide administrative services for itself and local councils for all back office functions including setting and collecting rates, accounting, treasury, asset management and other financial functions, human resources, payroll, and computer systems. These will all be overseen by the elected Auckland Council. Administrative arrangements are discussed further in Chapter 32, “Achieving a High-Performance Auckland Council”.

Delegations

15.32. The elected Auckland Council will have power to delegate some of its duties and powers to local councils. The elected Auckland Council will be prohibited by existing law from delegating certain functions to local councils, namely

15.33. These exclusions reinforce the status of the elected Auckland Council as the only body that can make regional policy,8 rates, by-laws, and district plans. This ensures that there is no competition between elected bodies on these important matters.

15.34. Apart from the excluded matters, the elected Auckland Council will have wide discretion to delegate powers to local councils, and the Commission anticipates that local councils will often take responsibility for regulatory enforcement.

Chief executive officer

15.35. The role of the chief executive officer of the Auckland Council will be of the utmost importance. That person will be responsible for the day-to-day running of the entire Auckland Council including local councils. He or she will have responsibility for employing all council staff at both the regional and local level, and for ensuring that council policy is implemented effectively.9 This will be a position comparable to that of the chief executive of the largest Government departments and the largest New Zealand private corporations. Attracting and recruiting the right person for the role is crucial.

15.36. The first chief executive must be a person with experience in running a large organisation, as well as having skills and experience in restructuring and establishing new organisations, and developing a new culture. He or she will be an experienced change manager who has the skills to build a culture to fit the new focus of the Auckland Council.

15.37. As noted in Chapter 33, the Establishment Board will appoint an interim chief executive for the Auckland Council. The Commission recommends that the State Services Commissioner should also be involved in this appointment process and also in any subsequent appointments of chief executive officers. In the case of subsequent appointments to the role of chief executive officer, a panel consisting of the Mayor of the Auckland, the deputy mayor, and the State Services Commissioner should recommend a shortlist of candidates for consideration by the council.

15.38. For both the interim and later appointments the State Services Commission could also assist with developing the job description of the chief executive’s position managing the candidate search services designing a robust performance management framework for the chief executive.

Relationship between elected members and management

15.39. This is an issue that affects both the regional and local levels of the Auckland Council.

15.40. Section 39 of the LGA 2002 articulates a number of governance and management principles, including a requirement that a local authority must ensure that the relationship between elected members and management of the local authority is effective and understood.

15.41. The exact nature of the relationship is a common point of contention on which there are differing points of view. For example, in his background paper for the Commission, Professor Robin Hambleton noted that the interplay between leadership and management is vital in local government. He says that it is misguided to assert that “politicians lead” and “officers manage”. In fact, he states, both have roles to play in leadership and management.10

15.42. The Knowhow Guide to Governance, which is produced jointly by Local Government New Zealand, the Department of Internal Affairs, and the New Zealand Society of Local Government Managers, acknowledges this tension:11

The rule of thumb is the elected members decide what the local authority should be doing, staff provide policy advice on issues and carry out the decisions, and the elected members review the performance of the organisation in achieving the objectives. Of course, things are never that simple. Citizens hold “their” elected member responsible not only for the “what” but the “how”. In practice there is no clear demarcation between what is “governance” and what is “management”.

15.43. The Commission considers that this ongoing tension and debate is healthy. It confirms that, to the extent applicable, the principles in section 39 of the LGA 2002 should continue to apply to councillors both within the elected Auckland Council and at the local council level.

Relationship with local councils

15.44. The governance of Auckland will be shared between the elected Auckland Council and the local councils. Each will have an important role to play and it will be crucial that each respects the role of the other. The success of the relationship between the two levels of the Auckland Council will depend in part on

15.45. Within those general parameters, the elected Auckland Council will have a supervisory role over local councils, with an obligation to set frameworks and standards, including performance targets for service delivery. Auckland Council will monitor and oversee local councils’ financial performance of local functions, make regional policy within which local councils must work, direct local councils on matters affecting Auckland Council functions, and monitor local councils’ performance of delegated functions.12

15.46. The local councils will have specific functions under statute, and functions delegated to them by the elected Auckland Council. The local councils will be expected to undertake their statutory responsibilities in accordance with the plans and policies of the elected Auckland Council, including the provisions of the LTCCP and any delegation. Provided local councils are doing so, there would be no justification, nor any legal basis, for the elected Auckland Council to modify or rescind a local council decision. The elected Auckland Council will need to maintain close control over any delegated functions, however, to ensure that the details of the delegation are being observed.

15.47. It is anticipated that the relationship between local councils and the elected Auckland Council will be defined in a three-yearly governance agreement, whose purpose will be to ensure effective shared governance, and cooperation, coordination, and communication between the Auckland Council and each local council. The contents of this agreement are detailed in the next chapter.

15.48. To ensure that information about community needs reaches the regional level, a strong and formal feedback loop from local councils to the elected Auckland Council must be established. The draft Auckland Act prepared by the Commission provides for a number of further interface mechanisms.13 These include

15.49. On a day-to-day basis it is essential that there be good information flows between the elected Auckland Council and local councils and a collaborative approach. Local councils will be able to submit on any draft region-wide plans, policies, and service standards of the Auckland Council, advising it of relevant community needs and views.14 It is also expected that officers will work together on a day-to-day basis.

15.50. In the long term, the credibility of the Auckland Council will depend on the quality of its region-wide policies and implementation. In the short term, however, it will substantially depend on public perceptions of the effectiveness of its local service delivery. If the Auckland Council is not seen to be effective locally, this will not only result in poorer outcomes at the community level but will also undermine its ability to influence and lead on the bigger picture issues. Clearly, the local councils must be seen to be effective at the local level from the outset.

Relationship with central government

15.51. It will be important for the Auckland Council to develop and maintain a strong partnership with central government. This will recognise the central importance of Auckland to New Zealand, and New Zealand to Auckland. Central government needs to have Auckland’s priorities presented to it in an accurate and consistent way, and it needs to have confidence in the ability of the Auckland Council to make good decisions and to deliver in an effective and efficient way. Having created an effective Auckland Council as the Commission proposes, central government should then allow the Auckland Council to influence Government decision making, working in partnership for the greater good of Auckland and New Zealand.

15.52. Enhanced Auckland governance will enable an improved and better coordinated interface between Auckland and central government. To make the most of these new opportunities, Auckland needs to have a clear channel of communication to the Government. The Commission envisages that there will be a Minister for Auckland who will be a senior Cabinet Minister. Just as the Mayor of Auckland would be the voice of Auckland in dealing with the Government, the Minister would be the Government’s voice on Auckland issues. The Minister for Auckland should attend meetings of the Auckland Council, and meet regularly with the Mayor of Auckland and Auckland councillors to discuss matters of mutual interest.

15.53. The Minister for Auckland would report to a Cabinet Committee for Auckland made up of the Ministers holding budgets for significant expenditure in Auckland. It would include for example the Ministers of Infrastructure, Transport, Social Development, Economic Development, Local Government, Health, and Education, and the Rugby World Cup (at least for the next few years). The Cabinet committee will meet as a whole at least every six months, but more frequently in part, with relevant Ministers meeting on particular issues as required. A key role of the committee will be to set priorities for Government spending in Auckland and to decide the allocation of discretionary funding.15 The Cabinet committee would also keep oversight of events of international significance affecting Auckland, such as the Rugby World Cup.

15.54. The Cabinet Committee for Auckland should be supported by an officials committee made up of the chief executives of relevant Government departments. The Government might consider presenting a notional “budget for Auckland” that brings together all Government revenue and expenditure from Auckland. This could assist the Government in ensuring that Government and Auckland policies are properly aligned. Improved coordination between Government departments and Auckland local government will make policy more sensitive to regional realities and imperatives, and ensure more efficient public investment.

15.55. The Commission expects that this model will be supported by close working relationships between Government agencies and Auckland Council agencies (for example the Regional Transport Authority will work closely with the New Zealand Transport Agency). There will be considerable bilateral officer-to-officer contact at many levels. The Commission recommends that joint decision-making boards be established to set strategy and guide spending in the areas of social development and transport as described in Chapter 9 and Chapter 25 respectively. It is anticipated that current Government department initiatives to coordinate with local authorities in Auckland, such as the Government Urban and Economic Development Office and the Social Policy Evaluation and Research Committee, will continue.

15.56. In relation to social well-being, the Commission is proposing that local and central government work together through a Social Issues Board. This board will be the core governance body for social issues, binding local and central government together in a shared decision-making and accountability structure. The board will be supported by a Social Issues Advisory Group made up of officials. The Social Issues Board will make decisions on a regional strategy, and will present joint recommendations to the Cabinet Committee for Auckland and the Auckland Council for decisions on resource allocation. The decisions will then be implemented by the appropriate Government department and/or Auckland Council team. The Social Issues Board will also be responsible for setting outcomes and targets, and monitoring progress.

15.57. Some submitters suggested that a strong Auckland Council could be seen as a potential rival to central government. The Commission does not accept that this would be so. The relationship between Auckland Council and the Government will be one of interdependence and partnership, centred around shared decision making and accountability. The Auckland Council will not have any power under the Commission’s model to commit Government expenditure in any particular way and the Government will not have the power to commit council’s expenditure. It is proposed, however, that the joint decision-making bodies for social well-being and transport should allow for alignment and integration, and be binding on both where agreement has been reached.

15.58. More generally, the Commission believes that as long as there are regular meetings and protocols to formulate the relationship and responsibilities, the inevitable occasional tensions should be manageable.

15.59. The Commission believes that it is important to have prior agreement between the parties on the objectives and scope of the partnership. Waitakere City Council commissioned a report which identified matters that might be included in any agreement, namely “Protocols or high level Principles between the parties outlining the scope of the relationship; the visions, strategies, significant investments and initiatives; respective funding allocation; the joint work programme; the level of political engagement; the level and type of stakeholder and community engagement; and provision for debate and disagreement”.16

15.60. The Commission notes that a range of models for formal arrangements between central and local government are in use internationally, many with a statutory basis.17 These range from specific bodies with joint central and local government membership such as the Welsh Partnership Council established under the Government of Wales Act 1998 (UK), to protocols or memoranda of understanding such as the South Australian State-Local Government Relations Agreement 2004. The latter contains a set of objectives and shared understandings for the relationship, agreed principles (on mutual recognition, communication, and consultation, financial relations, and shared strategic directions) and agreed processes.

Inter-regional cooperation

15.61. As discussed in Chapter 1, “Why Auckland Matters”, New Zealand’s economy consists of specialist economic activity taking place in different parts of the country. Decisions made and events that occur in Auckland affect other parts of the country and vice versa. Obvious examples include cross-border effects resulting from variations in water and air quality, or decisions about infrastructure that influence economic activity such as commuting between regions.

15.62. These impacts are felt most immediately between neighbouring regions – in Auckland’s case, Northland, Bay of Plenty, and Waikato – requiring regular contact and cooperation to address problems and capitalise on synergies. While it is anticipated that existing cooperative mechanisms will continue on specific issues, the Commission considers that there is scope for a broader-based consultative forum involving the four regions of the upper North Island, namely Northland, Auckland, Waikato, and Bay of Plenty, given the strong interconnections and dependencies between the regions. For example, construction of a fast rail link to Hamilton would require significant inter-regional cooperation.

15.63. Accordingly, the Commission recommends the convening of an annual forum comprising the Auckland Council and relevant interest groups (including regional and territorial councils and business groups) from the Northland, Waikato, and Bay of Plenty regions on matters of mutual and topical interest. This might include discussion of economic development initiatives, infrastructure, growth management issues, environmental issues, and tourism. The Commission sees the value of this forum to be in promoting, and responding to in a coordinated way, the high growth in these four neighbouring regions. It is proposed that the Minister for Auckland might convene and chair this forum.

15.64. It is also important for Auckland and for New Zealand that sound relationships should exist between the main centres of Auckland, Wellington, Christchurch, and Dunedin. It is essential that the leadership of these four cities should cooperate with each other to ensure the best results for New Zealand. The Commission anticipates that the current intercity forum will continue, but the Auckland Council will need to make special efforts to establish good relationships with other parts of New Zealand.

Performance oversight

15.65. The Auckland Council will be subject to the ordinary checks and balances contained in current local government legislation, including

15.66. In addition, some other checks and balances might be appropriate to ensure that the Auckland Council delivers value for money, given the large size and scope of the council. The Commission expects that the Establishment Board will consider this when it designs the internal monitoring and internal audit functions. The Commission envisages that the role of the proposed Audit and Risk Management Committee of the council would include monitoring and reporting on internal financial control, effectiveness and efficiency, deterring fraud and corruption, and legal compliance. Auckland Council will be required to appoint a services performance auditor.18

Public involvement

15.67. The Auckland Council will have many opportunities to engage with, and receive input from, the public as follows:

15.68. It is also anticipated that the Auckland Council will take a fresh approach to engagement, streamlining formal processes and developing innovative new ways to connect with its communities, in order to overcome the disconnection and dissatisfaction with current processes identified as a core problem of Auckland’s current local governance in Chapter 11, “Defining the Problems”. A key consideration in relation to improving social well-being outcomes will be effective engagement with priority populations such as Māori, Pacific, other ethnic groups, young people, and people on low incomes.

15.69. The Commission also anticipates that the Auckland Council will wish to encourage wider collaboration between Auckland local government and interested parties in the public, private, and non-profit sectors. One aspect of this will be to gain access to additional sources of revenue and capital investment. The coordination of strategic planning and investment by Auckland Council will provide opportunities to generate investment by other parties in Auckland.

15.70. Commissioners were impressed by the contribution made to city governance by well-informed interest groups in North America and London. “Civic thought leaders” are people instrumental in fostering public debate and developing fresh approaches to issues facing a city. In the course of its inquiry, the Commission met with a number of such organisations and individuals, passionate about Auckland, and its success. Often these groups can mobilise responses to urban problems without direct local government involvement. The Tindall Foundation’s Omega Project in Auckland (described in Chapter 10) for facilitating migrant employment is one example. In the case of the central business district, the Heart of the City business group has lobbied and worked with the Auckland City Council to improve the image of the central city, building on its heritage and upgrading amenities and services. The Committee for Auckland works on a variety of projects to improve Auckland. The Commission would encourage the Auckland Council to consider how best to facilitate more input and involvement from such groups in Auckland’s governance.

15.71. It is also expected that the Auckland Council at Auckland and local levels will wish to partner with business, education, not-for-profit groups, and other agencies to address shared objectives. Examples of entities in which the Auckland Council is expected to have a continuing interest include the New Zealand Innovation Centre, which fosters commercialisation of research (Manukau City Council and the University of Auckland currently partner in this arrangement), and the Tamaki Transformation Programme, which brings together communities, central government agencies (including Housing New Zealand Corporation, Ministry of Social Development, and health agencies) and local government (Auckland City and Regional Councils) to redevelop and increase housing, upgrade infrastructure, enhance social services, and increase economic performance.

Recommendations

Composition, role, and functions

15A The Auckland Council should comprise 23 councillors elected or appointed as follows:

15B The role and functions of the Auckland Council should be as prescribed for unitary authorities under the Local Government Act 2002 and other legislation, and as may be additionally prescribed in any future legislation referring specifically to the Auckland Council or any of the abolished local authorities.

15C The Auckland Council should be responsible for all asset management, debt management, and revenue raising. It will also develop one set of financial plans and policies for Auckland. There will be one rating system for Auckland and ratepayers will receive one rates bill.

15D The Auckland Council should operate a hierarchical and integrated planning framework as outlined in Chapter 15. There will be a new regional spatial plan and one district plan for Auckland.

15E The Auckland Council should be responsible for the production of the long-term council community plan and annual plans as required by the Local Government Act 2002, for its own operations and the operations of local councils. There will be one long-term plan and annual plan for Auckland.

Advisory panels

15F The Auckland Council should establish advisory panels and groups as necessary to ensure appropriate expertise is available to it.

15G The Auckland Council will appoint an Appointments Advisory Panel which will assist the Auckland Council to recruit directors or representatives to serve on boards of council-controlled organisations, external entities (for example the Auckland Museum Trust Board), advisory panels, and forums.

15H The relationship between Auckland Council and each local council should be governed by a three-yearly governance agreement negotiated in the year following each local body election.

15I The Auckland Council’s annual report under the Local Government Act 2002 should include separate sections on the operations of the elected Auckland Council and each local council.

Chief executive

15J The State Services Commissioner should be asked to assist in developing the job description and design of the performance management framework, and in conducting the initial screening and short-listing for the chief executive.

Relationship with central government

15K The Government should enter into a partnership agreement with the Auckland Council and appoint a senior Government minister as Minister for Auckland; in addition it should appoint a Cabinet Committee for Auckland comprising Ministers with portfolios of significance to Auckland. The Cabinet Committee should be supported by an officials committee.

15L The functions of the Cabinet Committee for Auckland should include

a) consulting with the Auckland Council through the Minister for Auckland
b) setting priorities for Government spending in Auckland and deciding on the allocation of discretionary funding
c) overseeing events of international significance affecting Auckland.

Relationship with other regions

15M The Auckland Council should meet regularly with representatives of the neighbouring regions of Northland, Waikato, and Bay of Plenty to consider issues of mutual interest.

15N The Minister for Auckland should consider convening an annual forum comprising the Auckland Council and relevant interest groups (including regional and territorial councils and business groups) from the Northland, Waikato, and Bay of Plenty regions to discuss matters of mutual and topical interest.

15O The Establishment Board should review all current council advisory panels and groups and report to the Auckland Council on which current advisory groups should be continued by the Auckland Council.

15P The Establishment Board should appoint an interim Appointments Advisory Panel. It will assist the Establishment Board to

a) undertake the review of existing advisory panels described above
b) prepare draft terms of reference for new and continuing advisory panels
c) identify potential candidates for such panels
d) recruit interim directors for council-controlled organisations, as necessary.

1 Manu whenua – local Māori with ancestral ties to the land.

2 Local Electoral Act 2001, section 4(a).

3 Local Government Act 2002 (“LGA 2002”), Schedule 7, clause 31, provides for appointment of non-elected members to committees.

4 LGA 2002, section 57.

5 For further discussion of these topics, see Chapter 8 for the Kaipara Harbour and Hauraki Gulf, Chapter 9 for the Social Issues Board, and this chapter for regional cooperation.

6 Many Acts confer functions on local authorities. A selection is listed in Chapter 3, “Auckland’s Existing Local Government Arrangements”.

7 In relation to social issues, this will be carried out by the Social Issues Board, as described in Chapter 9.

8 “Regional policy” cannot be exhaustively defined but includes the matters referred to in the left hand column of Box 15.1.

9 This excludes CCO staff, who will be appointed by the chief executives of CCOs.

10 Hambleton, Robin, “Civic leadership for Auckland: An international perspective”, in Royal Commission on Auckland Governance, Report, Volume 4: Research Papers, Auckland, 2009, pp. 530–531.

11 Local Government New Zealand, the Department of Internal Affairs and the New Zealand Society of Local Government Managers, The Knowhow Guide to Governance Under the Local Government Act 2002, p. 25.

12 In relation to social issues, strategy development, outcome and target setting, and monitoring will be the responsibility of the Social Issues Board, as described in Chapter 9.

13 Chapter 31, “Statutory Reform” contains a draft Auckland Act.

14 In relation to social issues, the Social Issues Advisory Group will also provide information (data, social mapping, and the like) to support local initiatives, as described in Chapter 9.

15 In relation to social issues, the Cabinet Committee for Auckland will receive recommendations from the Social Issues Board about resource allocations to support implementation of the Social Issues Strategy.

16 Brookfields Consultants Ltd, Effective Relationships and Collaborative Arrangements between Central and Local Government, A Report prepared for the Waitakere City Council, April 2008, p. 2.

17 Ibid., p. 3.

18 Provided for in the draft Auckland Act in Chapter 31.

19 The role of the Mayor of Auckland is discussed in more detail in Chapter 19.

20 See Recommendations 22B and 22C.

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