 |
|
|
|
|
|
|
|
|
|
|
 |
 |
 |
|
|||||||
 |
 |
 |
 |
 |
 |
 |
 |
|
||
Council-controlled organisations
Sometimes local authorities ring fence particular activities, such as economic development projects, and place their management at arms length from their governance and management structures. They may operate under the LGA 2002 as what are known as Council Controlled Organisations (CCOs), and under previous legislation may have operated as Local Authority Trade Enterprises (LATES).
A council may continue to fully or partly own the undertaking, but the accountabilities of the ring fenced activity may be one step removed from the community. Council may appoint directors, and those directors may appoint managers of entities. Elected councillors, short of removing directors, are not able to influence the management.
Wellington, for example, in its harbour has a number of entities influenced by but separate from local territorial and regional council interests. These include its Lambton Harbour Development known as Waterfront Wellington, CentrePort and a Museums Trust. Auckland and other port cities similarly have a number of local authorities and businesses with some public ownership around their coasts. Other places have their own mix of trading enterprises where directors have obligations. Waitomo has its roading-oriented Inframex.
CentrePort Wellington
The Greater Wellington Regional Council (GWRC) is an investor in Wellington’s CentrePort. GWRC has an arms length relationship with CentrePort, a port business whose profits from commercial shipping help pay for some GWRC functions.
GWRC investment in CentrePort has been stable for many years. It produces
good returns to GWRC and the other councils who are shareholders. The
returns help keep rates down for ratepayers.