Council-controlled Organisations
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Council-controlled organisations (CCOs) and council-controlled trading organisations in New Zealand are what were formerly known as ''
local-authority trading enterprise A local authority trading enterprise (LATE) was an organisation established in New Zealand under the Local Government Act 1974. The 1989 legislation assigned regional councils planning and funding responsibilities, but not the transport supplier ...
s'' (''LATEs''). Introduced under Sections 6 and 7 of the ''
Local Government Act 2002 The Local Government Act 2002 (sometimes known by its acronym, LGA) is an act of New Zealand's New Zealand Parliament, Parliament that defines local government in New Zealand. There are 73 territorial authorities (districts and cities), each w ...
'', they are essentially any company with a majority
council A council is a group of people who come together to consult, deliberate, or make decisions. A council may function as a legislature, especially at a town, city or county/shire level, but most legislative bodies at the state/provincial or natio ...
shareholding, or a trust or similar organisation with a majority of council-controlled votes or council-appointed trustees, ''unless'' designated otherwise. More than one council may be represented in a council-controlled organisation. They are used for widely varying purposes by councils. For example, the
Wellington City Council Wellington City Council is a Territorial authorities of New Zealand, territorial authority in New Zealand, governing the city of Wellington, the country's capital city and List of cities in New Zealand#City councils, third-largest city by popul ...
uses trusts to hold museums and its zoo, while in 1996 the
Horowhenua District Council Horowhenua District is a territorial authority district on the west coast of the North Island of New Zealand, administered by Horowhenua District Council. Located north of Wellington and Kāpiti, it stretches from slightly north of the town of ...
transferred its library functions to the Horowhenua Library Trust. In the past, the erstwhile for-profit LATEs were seen as the
local government Local government is a generic term for the lowest tiers of governance or public administration within a particular sovereign state. Local governments typically constitute a subdivision of a higher-level political or administrative unit, such a ...
equivalent of
state-owned enterprises A state-owned enterprise (SOE) is a business entity created or owned by a national or local government, either through an executive order or legislation. SOEs aim to generate profit for the government, prevent private sector monopolies, provide goo ...
(SOEs). Many of these, which included bus companies, diagnostic laboratories, public works divisions and property investment companies, were
privatised Privatization (rendered privatisation in British English) can mean several different things, most commonly referring to moving something from the public sector into the private sector. It is also sometimes used as a synonym for deregulation wh ...
. For-profit council organisations are now termed ''council-controlled trading organisations'' under the Act. Council-controlled organisations pay tax to central government, unlike the internal activities of councils which are tax-free. The ''Local Government Act'' exempts certain organisations from its legislative control and there is a mechanism under Section 7 to manually designate further exceptions. The automatic exceptions include: *electricity companies and electricity trusts *energy companies *port companies and their subsidiaries *
Infrastructure Auckland Infrastructure is the set of facilities and systems that serve a country, city, or other area, and encompasses the services and facilities necessary for its economy, households and firms to function. Infrastructure is composed of public and pri ...
and its subsidiaries * New Zealand Local Government Association and its subsidiaries * New Zealand Local Government Insurance Corporation *
Watercare Services Watercare Services (Watercare) is an infrastructure asset management council-controlled organisation (CCO) that manages the drinking water and wastewater services of the Auckland Region of New Zealand. Watercare is registered with the New Zeal ...
(
Auckland Auckland ( ; ) is a large metropolitan city in the North Island of New Zealand. It has an urban population of about It is located in the greater Auckland Region, the area governed by Auckland Council, which includes outlying rural areas and ...
)


See also

*
Auckland Transport Auckland Transport (AT) is the council-controlled organisation (CCO) of Auckland Council responsible for transport projects and services. It was established by section 38 of the Local Government (Auckland Council) Act 2009, and operates under ...
, New Zealand's largest CCO *
Christchurch City Holdings Christchurch City Holdings Ltd (CCHL) is a wholly owned investment arm of the Christchurch City Council. The council controlled trading organisations (CCTO) own and run some of the important infrastructure in Christchurch, such as the public t ...
, owns and runs some of the important infrastructure in Christchurch


References

{{reflist


External links


''Local Government Act 2002''
(see Sections 6 and 7) Local government in New Zealand