We asked for community feedback on the proposal to join a council-controlled organisation (CCO) with other regional and unitary councils.
The new CCO would support shared services and collaborative activities in the regional sector.
About creating a shared services company
The 16 regional councils and unitary authorities in Aotearoa New Zealand work together on areas of shared interest. They now wish to take this arrangement a step further by creating a shared services company. This is in response to:
- increased demands from central Government to deliver a broad range of reform packages
- capacity and capability challenges and competition between councils to attract and retain staff
- expectations from our communities for councils to do more with the same, or less.
This change will lead to improved outcomes from investment in national programmes of work. It will also improve access to specialist and expensive resources, reduce costs and share risk.
Why we consulted
We consulted with anyone who may be affected or have an interest in the proposal, and we encouraged views on the proposed participation in the CCO through this consultation process.
Gisborne District Council must consult prior to becoming a shareholder of a CCO. This is stated in section 56 of the Local Government Act 2002.
For more information – see Report 22-29 Proposal to Consult on Joining the Regional Shared Services Organisation
What is a CCO?
A council-controlled organisation can be a company, partnership or trust arrangement for the sharing of profits, union of interest, cooperation, joint venture or other similar arrangement in which one or more local authorities, directly or indirectly, controls the organisation.
The company will be created by restructuring Regional Software Holdings Limited (RSHL), a pre-existing Council-Controlled Organisation (CCO) created by 6 regional councils for this purpose.
A CCO can be a company, partnership, trust, arrangement for the sharing of profits, union of interest, co-operation, joint venture or other similar arrangement in which one or more local authorities, directly or indirectly, controls the organisation.
It's intended that the organisation will be a company, with up to 16 shareholders, being the 16 regional councils and unitary authorities in New Zealand. Depending on the final adopted structure of the CCO, Council may hold shares or some other form of ownership.
Council will contribute to the operating costs of the CCO through ongoing membership fees. These contributions will replace existing contributions to national programmes and will be at a similar level. Therefore, joining the organisation isn't expected to create any additional costs.
Council will maintain its ownership of the CCO as long as it continues to operate and the Council continues to utilise the services provided by the CCO.
Once established, the CCO will prepare a statement of intent.
This statement of intent will form the basis of key performance targets and other measures by which the performance of the CCO may be judged. Becoming a shareholder will give Council greater input and control into the work that is planned to be delivered.
This change will have several benefits to Council, as well as the regional sector, more broadly:
- Through collaboration, the sector can use resources more efficiently, deliver greater national consistency and achieve economies of scale in the implementation of common policies, services and programmes.
- Council can expect improved outcomes from investments in sector shared programmes.
- The change will increase the credibility of the sector as a trusted deliverer with a unified and consistent sector profile.
- The change will also reduce the lead time for the implementation of shared services.
- The new structure would also consolidate all dedicated staff working on regional sector collaboration under one organisation.
Submissions closed 16 May 2022 - we received 2 submissions.
|2 - 16 May||Community consultation|
|23 June 2022||If Council and community support the proposal, it could be adopted under the Annual Plan|