Local Government (Auckland Law Reform) Bill

The Local Government (Auckland Law Reform) Bill (the Bill) introduced to Parliament on 10 December 2009 was passed on 3 June 2010. It is the third Bill reorganising local government in Auckland. Following Royal Assent the Bill will become three Acts: the Local Government (Auckland Council) Amendment Act, the Local Government (Tamaki Makaurau Reorganisation) Amendment Act and the Local Government (Transitional Provisions) Act.

The Bill makes changes to the general framework for local boards, existing council controlled organisations, and includes special provisions to deal with the transfer of staff and assets from the existing entities into the new operating structure. It also provides for the establishment of the new regional transport authority, Auckland Transport. The Bill goes on to set out Auckland Transport’s purpose, functions and governance rules.

The Bill has been considered by the Auckland Governance Legislation Select Committee and was reported back to Parliament on 24 May 2010.

A number of changes were made in the course of the Bill’s passage. The main changes to Auckland Transport’s accountability are:

• Auckland Transport will be required to give effect to Auckland Council’s Long Term Council Community Plan, often referred to as an LTCCP. Auckland Council will also be able to identify other Council plans that Auckland Transport must act consistently with.
• Transport funding is expressly described as a statutory responsibility of the governing body of Auckland Council.
• Auckland Transport will still be constituted as a statutory entity with specific transport powers and functions. However, it will be subject to almost the same Council Controlled Organisation (CCO) accountability regime as applies to other substantive Auckland CCO’s. This is instead of a specially made accountability regime as originally proposed in the Bill.
• Auckland Transport, like other Auckland CCO’s, will have to hold two public meetings: a public meeting before 30 June for the purpose of considering comments on the draft statement of intent; and a public meeting after 1 July for the purpose of considering the organisation's performance under its statement of intent. Any meetings at which bylaws are proposed will also have to be held in public.
• Auckland Council will:
  • Control Auckland Transport’s regionally sourced funding through the LTCCP
  • Appoint and remove board members (from 1 November 2010)
  • Appoint the Chair and Deputy Chair from the non-elected members
  • Agree Auckland Transport’s Statement of Intent
  • Consider Auckland Transport’s quarterly reports
  • Determine those parts of Auckland Transport’s constitution that are not set in statute, including rules for the operation of the board and any limits on disposal of significant assets. 

The main adjustments to Auckland Transport’s functions are:

• The objective of Auckland Transport has changed to a purpose statement to, “contributing to an efficient and effective land transport system to support Auckland’s economic, social, cultural and environmental wellbeing”.
• Additional provisions have been included to clarify the provisions around ownership, acquisition and disposal of land to make it clear that Auckland Council will own roads in Auckland while Auckland Transport will manage and control roads.  Acquisition of land for new transport projects or disposal of surplus land will be done by the council on the recommendation of Auckland Transport.
• The regulatory powers of Auckland Council and Auckland Transport have also been clarified to draw a clear distinction between:
  • transport powers exercised by Auckland Transport within the Auckland Transport system (eg speed limits on streets)
  • transport powers that Auckland Council still needs to be able to exercise outside the Auckland Transport System (eg speed limits on roads in parks)
  • general bylaw and regulatory powers of the Auckland Council that apply to any land in the Auckland region, including the Auckland Transport System (eg dog control bylaws and land use zones)

Read about the Bill on the Department of Internal Affairs website.

The following provisions in the Bill specifically relate to transport:

• The Bill establishes a statutory regional transport authority to be known as Auckland Transport.
• Auckland Transport will have a Board of up to eight voting members, including up to two Councillors nominated by the Auckland Council. The New Zealand Transport Agency will be able to nominate a further non-voting member.
• Auckland Transport will be accountable to the Auckland Council who will appoint the board and govern it as Council Controlled Organisations under the Local Government Act 2002.
• The Bill makes the Auckland Council responsible for setting the strategic direction for the Auckland transport system through the Auckland Regional Land Transport Strategy and in providing funding to Auckland Transport. 
• Auckland Transport will be responsible for the management and control of Auckland’s local roads and public transport system, including responsibility for preparing the Auckland Regional Land Transport Programme.
• Auckland Transport will control:
  • Local roads fence-to-fence (although these will be owned by the Council)
  • Public transport services
  • Public transport assets owned by the Council or Auckland Transport 
• The Auckland Council will be able to delegate other transport functions to Auckland Transport, including management of off-street parking.
• The Bill requires that the Auckland Regional Land Transport Programme will continue to prioritise and bid for national funding of regional transport activities under the Land Transport Management Act. The Programme must be consistent with the Government Policy Statement on Land Transport Funding and the Regional Land Transport Strategy prepared under the Land Transport Management Act.
• The Regional Land Transport Programme will also serve as a comprehensive programme for all transport activities funded by the Auckland Council and local boards.
• Auckland Transport will become the local road controlling authority for Auckland and assume the majority of the transport related powers of a local authority under the 1974 and 2002 Local Government Acts, the Transport Act 1962 and the Land Transport Act 1998. Auckland Transport will also have the requiring authority powers of a network utility operator under the Resource Management Act 1991, and be responsible for public transport under the Public Transport Management Act 2008.
• Auckland Transport will be responsible for transport bylaws that are necessary for the management of local roads and public transport.  Auckland Council will be responsible for other transport related bylaws (eg property development, liquor bans, cruising, naming roads).
• Consequential amendments include the disestablishment of the Auckland Regional Transport Authority, Auckland Regional Transport Network Limited and the Auckland Regional Transport Committee, and the repeal of related legislation under the Local Government (Auckland) Amendment Act 2004. The special arrangements set up to allocate functions between the Committee and the Auckland Regional Transport Authority under Schedule 7 of the Land Transport Management Act will also be repealed.
• The Bill also proposes the following to address transitional and saving issues:
  • the appointment of an interim Board and Chief Executive for Auckland Transport
  • saving of existing statutory instruments and bylaws (including Auckland’s Regional Land Transport Strategy and Regional Public Transport Plan)
  • retaining the existing Auckland Regional Land Transport Programme through to 2012 when it is due for review.
• The Bill provides for the interim Chief Executive of the Auckland Council, in consultation with the interim Chief Executive of Auckland Transport, to determine the allocation of transport staff between Auckland Council and Auckland Transport.

Read the questions and answers on the Bill here.