The amalgamation of Auckland's local authorities and regional council into a single Auckland Council (the Council) is one of the most significant public sector reforms of recent years. The scale of the change and transition to the new Council was huge. To bring together eight councils to create a new organisation with $32 billion of assets and a $3 billion annual budget, and bring together 8000 staff from councils and council-controlled organisations is unprecedented in New Zealand's public sector history.
The Council (as a group) is among the largest and most complex entities in New Zealand. It has complex and finely balanced governance arrangements. The Council carries out many important infrastructure and regulatory services that affect the daily lives of more than a third of New Zealanders. Its strategy and planning affects our future national economic and social prosperity. Therefore, the Council's governance and use of resources is of significant interest to me and my office.
Two years on from the Council's establishment, I wanted to reflect on the transition and the Council's emerging governance challenges. I hope that this report will be useful to those involved in the governance of the Council as an "outsider's" view of the issues and challenges they told us about. I also hope that it will be useful for others contemplating such change under the Local Government Act Amendment Bill that is presently before Parliament. However, Auckland is unique and not all its changes or experiences will be relevant for others.
Lyn Provost
Controller and Auditor-General
4 December 2012