Auckland Council and the Council Controlled Organisations Debate - Logical Evolution or Misguided Devolution?

Much has been said about the proposed role of Council Controlled Organisations or 'CCO s' within the new Auckland Council structure. In this update, we look briefly at the history of the CCO , look at what is proposed under the new Auckland Council structure and conclude by considering the ways in which the new Auckland Council is likely to exercise control over its CCO s.

The CCO and its origins

In simple terms, a CCO is any company or entity in which one or more local authorities control 50% or more of the voting rights or the right to appoint 50% or more of the governing body of the company or entity. The term 'entity ' in the Local Government Act 2002 (LGA02) is given a very broad meaning and can include trusts, partnerships, joint ventures, unions of interest and a range of other similar arrangements. The LGA02 contains provisions, among other things, dealing with the establishment of CCOs, their governance and reporting requirements.