Auckland under attack

Last updated 10:39 10/03/2010

If ever there was doubt about the Government’s agenda to corporatise and privatise Auckland’s assets it should have been dispelled yesterday by Prime Minister John Key’s emphatic defence of the CCO (Council Controlled Organisation) model for the new Auckland supercity.

The government plans to have 75 percent of the new supercity’s services run through CCOs,  leaving an emasculated group of elected councillors to twiddle their thumbs around the council table.

Seven CCOs are proposed – the largest of which would run Auckland transport and be responsible for spending over half the council’s annual budget. It would receive $630 million from ratepayers who would effectively be denied a say in how that money was spent.

Instead, six to eight unelected directors appointed initially by Minister of Local Government Rodney Hide would spend taxpayer money without democratic accountability.

Every sane Aucklander knows the crying need here is to get cars off the roads by improving public transport.

Super-mayor hopeful Len Brown says if he is elected transport across the region will be his top priority but he says "How can I do that if transport is sitting in someone else's hands, not directly accountable?"

The short answer is he can’t. What’s more the priority of the corporate types appointed by Hide to run this CCO will be roads, roads and more roads. Businesses can’t use public transport to get their goods and services around so they want taxpayers to pay for roads.

They will pay lip service to public transport which will again go on the back burner while their new roads will attract more cars and more congestion.

CCOs will also be used to run water services, council investments, and develop the waterfront.

Together these CCOs will have control of the lion’s share of the region’s $28 billion in community assets and will work hard on the National/ACT agenda to commercialise council services and privatise assets. Again there will be no effective democratic accountability.

These CCOs are not required to listen to or consult with local communities and not obliged to even hold public meetings. Neither will they be required to front up when ratepayers’ money is misspent or projects go wrong. 

The proposals are so outrageous even the New Zealand Herald is shocked while the likes of John Banks and the Auckland Chamber of Commerce have felt to need to offer polite criticism so as not to find themselves on the wrong side of the debate when a significant public backlash develops.

You have to smile when you see Rodney Hide talking in empty sound bites when he says he wants to put the “local” back into local government.

Sounds great but Government plans will deliver the opposite. John Key and Rodney Hide want to put the corporate into local government and “contract out” democracy to unelected business types in an unaccountable, corporatised supercity.

38 comments
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DearJohn   #1   11:10 am Mar 10 2010

Why don't you understand - I don't want to take the bus or train. I want the freedom of my car. I pay my rates, I expect them back.

Thanks.

Charlie1   #2   11:10 am Mar 10 2010

If these unaccountable corporations are to use rate payer money the best option would be to vote for a council that will abolish rates until representation is restored. A sort of vote of no confidence.

Matt   #3   11:12 am Mar 10 2010

I hope for our sake your not on the money here John. CCOs are already in use in Manukau and seem to be working well but they're ripe parcels to be sold off if needs be. Let's hope free market ideology doesn't overide the public good in the supercity.

corey s   #4   11:19 am Mar 10 2010

several of these CCO exist already within Auckland, so dont agree that this is the BIG bAD NAtional/ACT conspiracy you would have every one believe

I would suggest that the best antisceptic is sunlight. If it uses public money, it should be both OPEN to and ANSWERABLE to the public.

On this we agree

bob sagat   #5   11:34 am Mar 10 2010

John, Thanks for putting the truth out there yet again...

oblix   #6   11:51 am Mar 10 2010

John you wrote 'John Key and Rodney Hide want to put the corporate into local government and “contract out” democracy to unelected business types in an unaccountable, corporatised supercity.'

isn't this just your opinion? and what did labour do when they were in government for 9years about the public transport Infrastructure in auckland?

AT   #7   11:55 am Mar 10 2010

Prime Minister John Key, well done!

Peter   #8   12:00 pm Mar 10 2010

There is a saying about democracy: No taxation without representation. As the Prime Minister of a democracy I trust that John Key will completely support to only pay half my rates under his new Auckland City Regime.

No Democracy   #9   12:06 pm Mar 10 2010

Key and Hide wants all their mates to be rich because obviously these CCO's are on a grander scale and they want the possibility to have shares in these companies if the time arises which it probably will so they can screw our rates even more!!!! they dont want public input at all!

What I cant understand is why have someone that had small votes in the election (Hide) lead and plan one of the biggest assets in NZ which is Auckland...... ummmmm money

no vote for Nats from me next time round, where the hell is the democracy here

Eddie   #10   12:17 pm Mar 10 2010

Hi John, a couple of points that you may not know about, or have failed to mention in your blog, which may be relevant to the debate:

1: The proposed (or rather, decided) CCO will not only control the region's "Council" roads, but also the motorways, which are funded through central government (previously the AMA). So this is not only Council money (rates) being managed, but also government's. I would think that, in a democracy, the government would want a say in how their money is being spent?

2: We do not know what mandate, or strategy the CCO board are being forced to push. It may well be that they get a clear directive to put more effort into public transport rather than roads. Your assertion on "roads, roads and more roads" is an assumption and not based on any fact.

3: I have seen the CCO model work very effectively in local council areas. When you remove the bumbling, amateur local politicians (not all of them, but there are a few well-meaning housewives) from the decision making process and allow a professional board to make decisions, it can work. Their challenge will be to ensure that all stakeholders' needs are met.

I am keen to see how this model will work. I am not the type to make judgements too early!!


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