I hereby give notice that an ordinary meeting of the Council Controlled Organisation Oversight Committee will be held on:




Meeting Room:



Tuesday, 24 May 2022


Reception Lounge Auckland Town Hall 301-305 Queen Street Auckland and via Microsoft TEAMS


Kōmiti Aromātai Whakahaere Kaupapa Kei Raro I

Te Maru O te Kaunihera / Council Controlled

Organisation Oversight Committee








Deputy Mayor Cr Bill Cashmore


Deputy Chairperson

Cr Angela Dalton



Cr Josephine Bartley

Cr Richard Hills


Cr Dr Cathy Casey

Cr Tracy Mulholland


Cr Fa’anana Efeso Collins

Cr Daniel Newman, JP


Cr Pippa Coom

Cr Greg Sayers


Cr Linda Cooper, JP

Cr Desley Simpson, JP


Cr Chris Darby

Cr Sharon Stewart, QSM


Cr Alf Filipaina, MNZM

IMSB Chair David Taipari


Cr Christine Fletcher, QSO

Cr Wayne Walker


Mayor Hon Phil Goff, CNZM, JP

Cr John Watson


IMSB Member Hon Tau Henare

Cr Paul Young


Cr Shane Henderson



(Quorum 11 members)



Duncan Glasgow

Kaitohutohu Mana Whakahaere /

Governance Advisor


19 May 2022


Contact Telephone: (09) 890 2656

Email: duncan.glasgow@aucklandcouncil.govt.nz

Website: www.aucklandcouncil.govt.nz




Terms of Reference




The purpose of the committee is to:


·         have a general overview and insight into the strategy, direction and priorities of all Council Controlled Organisations (CCO)

·         set policy relating to CCO governance

·         approve CCO Statements of Intent

·         monitor performance of CCOs and other entities in which the council has an equity interest (such as CRLL, Tāmaki Regeneration Company and Haumaru Housing).


Key responsibilities include:


·         monitoring the financial and non-financial performance targets, key performance indicators, and other measures of each CCO and the performance of each organisation

·         advising the mayor on the content of the annual Letters of Expectations (LoE) to CCOs and Ports of Auckland Limited

·         exercising relevant powers under Schedule 8 of the Local Government Act 2002, which relate to the Statements of Intent of CCOs

·         exercising relevant powers under Part 1 of the Port Companies Act 1988, which relate to the Statements of Corporate Intent for port companies

·         exercising Auckland Council’s powers as a shareholder or given under a trust deed, including but not limited to modification of constitutions and/or trust deeds, granting shareholder approval of major transactions where required, exempting CCOs, and approving policies relating to CCO and CO governance

·         approval of a work programme which includes a schedule of quarterly reporting of each CCO to balance reporting across the meetings.




(i)         All powers necessary to perform the committee’s responsibilities.


(a)          powers that the Governing Body cannot delegate or has retained to itself (section 2)

(b)          where the committee’s responsibility is limited to making a recommendation only

(ii)        Power to establish subcommittees.



Code of conduct


For information relating to Auckland Council’s elected members code of conduct, please refer to this link on the Auckland Council website - https://www.aucklandcouncil.govt.nz/about-auckland-council/how-auckland-council-works/elected-members-remuneration-declarations-interest/Pages/elected-members-code-conduct.aspx




Auckland Plan Values


The Auckland Plan 2050 outlines a future that all Aucklanders can aspire to. The values of the Auckland Plan 2050 help us to understand what is important in that future:


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Exclusion of the public – who needs to leave the meeting


Members of the public


All members of the public must leave the meeting when the public are excluded unless a resolution is passed permitting a person to remain because their knowledge will assist the meeting.


Those who are not members of the public


General principles


·           Access to confidential information is managed on a “need to know” basis where access to the information is required in order for a person to perform their role.

·           Those who are not members of the meeting (see list below) must leave unless it is necessary for them to remain and hear the debate in order to perform their role.

·           Those who need to be present for one confidential item can remain only for that item and must leave the room for any other confidential items.

·           In any case of doubt, the ruling of the chairperson is final.


Members of the meeting


·           The members of the meeting remain (all Governing Body members if the meeting is a Governing Body meeting; all members of the committee if the meeting is a committee meeting).

·           However, standing orders require that a councillor who has a pecuniary conflict of interest leave the room.

·           All councillors have the right to attend any meeting of a committee and councillors who are not members of a committee may remain, subject to any limitations in standing orders.


Independent Māori Statutory Board


·           Members of the Independent Māori Statutory Board who are appointed members of the committee remain.

·           Independent Māori Statutory Board members and staff remain if this is necessary in order for them to perform their role.




·           All staff supporting the meeting (administrative, senior management) remain.

·           Other staff who need to because of their role may remain.


Local Board members


·           Local Board members who need to hear the matter being discussed in order to perform their role may remain.  This will usually be if the matter affects, or is relevant to, a particular Local Board area.


Council Controlled Organisations


·           Representatives of a Council Controlled Organisation can remain only if required to for discussion of a matter relevant to the Council Controlled Organisation.



Council Controlled Organisation Oversight Committee

24 May 2022

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ITEM   TABLE OF CONTENTS                                                                                         PAGE

1          Apologies                                                                                                                        9

2          Declaration of Interest                                                                                                   9

3          Confirmation of Minutes                                                                                               9

4          Petitions                                                                                                                          9  

5          Public Input                                                                                                                    9

6          Local Board Input                                                                                                          9

7          Extraordinary Business                                                                                              10

8          Quarter Three Performance Reports 2021/2022 for Substantive Council-controlled Organisations and Ports of Auckland                                                                       11

9          Ports of Auckland Limited Letter of Expectation                                                   107

10        CCO Review recommendation on engagement and challenging decisions      111

11        Liaison councillors' updates                                                                                    119

12        Summary of Council Controlled Organisation Oversight Committee information memoranda and briefings (including the forward work programme) - 24 May 2022                                                                                                                                     121

13        Consideration of Extraordinary Items


14        Procedural Motion to Exclude the Public                                                               133

C1       CONFIDENTIAL: Stadiums operating model                                                          133

1          Apologies


At the close of the agenda no apologies had been received.




2          Declaration of Interest


Members are reminded of the need to be vigilant to stand aside from decision making when a conflict arises between their role as a member and any private or other external interest they might have.




3          Confirmation of Minutes


That the Council Controlled Organisation Oversight Committee:

a)         confirm the ordinary minutes of its meeting, held on Tuesday, 26 April 2022, as a true and correct record.





4          Petitions


At the close of the agenda no requests to present petitions had been received.




5          Public Input


Standing Order 7.7 provides for Public Input.  Applications to speak must be made to the Governance Advisor, in writing, no later than one (1) clear working day prior to the meeting and must include the subject matter.  The meeting Chairperson has the discretion to decline any application that does not meet the requirements of Standing Orders.  A maximum of thirty (30) minutes is allocated to the period for public input with five (5) minutes speaking time for each speaker.


At the close of the agenda no requests for public input had been received.




6          Local Board Input


Standing Order 6.2 provides for Local Board Input.  The Chairperson (or nominee of that Chairperson) is entitled to speak for up to five (5) minutes during this time.  The Chairperson of the Local Board (or nominee of that Chairperson) shall wherever practical, give one (1) day’s notice of their wish to speak.  The meeting Chairperson has the discretion to decline any application that does not meet the requirements of Standing Orders.


This right is in addition to the right under Standing Order 6.1 to speak to matters on the agenda.


At the close of the agenda no requests for local board input had been received.



7          Extraordinary Business


Section 46A(7) of the Local Government Official Information and Meetings Act 1987 (as amended) states:


“An item that is not on the agenda for a meeting may be dealt with at that meeting if-


(a)        The local  authority by resolution so decides; and


(b)        The presiding member explains at the meeting, at a time when it is open to the public,-


(i)         The reason why the item is not on the agenda; and


(ii)        The reason why the discussion of the item cannot be delayed until a subsequent meeting.”


Section 46A(7A) of the Local Government Official Information and Meetings Act 1987 (as amended) states:


“Where an item is not on the agenda for a meeting,-


(a)        That item may be discussed at that meeting if-


(i)         That item is a minor matter relating to the general business of the local authority; and


(ii)        the presiding member explains at the beginning of the meeting, at a time when it is open to the public, that the item will be discussed at the meeting; but


(b)        no resolution, decision or recommendation may be made in respect of that item except to refer that item to a subsequent meeting of the local authority for further discussion.”

Council Controlled Organisation Oversight Committee

24 May 2022


Quarter Three Performance Reports 2021/2022 for Substantive Council-controlled Organisations and Ports of Auckland

File No.: CP2022/05619



Te take mō te pūrongo

Purpose of the report

1.       To receive a summary and comments on the substantive Council-Controlled Organisation (CCO) and Ports of Auckland Limited (POAL) third quarter reports, for the period ending 31 March 2022.

Whakarāpopototanga matua

Executive summary

2.       Under Auckland Council’s accountability framework, each substantive Council-Controlled Organisation (CCO) must provide a quarterly report to the CCO Oversight Committee. The reports for the third quarter of 2021/2022 are contained in Attachments A to E and are measured against the updated 10-year Budget and the 2021-2024 Statements of Intent (SOIs).

3.       Under the Memorandum of Understanding between POAL and Auckland Council, POAL is to provide a quarterly report to the council as shareholder. The Ports of Auckland Limited report on the third quarter of 2021/2022 is contained in Attachment F.

4.       Key results are highlighted in the table below, and in more detail in the body of the report.

Council-controlled organisation

Summary of quarter three results

Auckland Transport

·    Public transport boardings are significantly down in the quarter, largely as a result of Omicron-related impacts.

·    Very positive safety results from local roads with reduced speed limits.

·    While overall capital delivery is behind, good progress still being made, such as in exceeding the planned number of new/improved pedestrian crossings.

Auckland Unlimited

·    Auckland Unlimited’s revenue has been significantly affected by COVID-19 restrictions, though this is expected to ease in quarter four.

·    Of the nine performance measures that are tracked quarterly, six are either achieved or are on-track to achieve their year-end targets, with three not on-track.

·    Capital delivery is $17.8 million behind budget for the year to date.

Eke Panuku

·    Capital spend is $25 million against a year-to-date budget of $67.3 million (37 per cent of delivery). Delivery is behind mainly due to the impact of COVID-19 and supply chain issues. 

·    Eke Panuku direct revenue and direct expenditure are favourable compared to budget.

·    Of the 11 performance measures that have targets this year, eight are on track to be met, with three not on track.


·   Capital delivery has been slowed by COVID-19 impacts and is $115 million behind budget for the year to date.

·   Watercare’s operational revenue remains higher than budgeted, reflecting higher revenue from development than anticipated, and its operational expenditure is also up.

·   Twenty-four of the 27 performance targets are on track.

Ports of Auckland

·    The Omicron outbreak continues to have a significant impact on POAL employees in quarter three. Congestion in the global supply chain continues.

·    All POAL’s financial targets are on track.

·    Of the non-financial performance targets, five are on track and five are not met or not on track.



Ngā tūtohunga


That the Council Controlled Organisation Oversight Committee:

a)      receive the 2021/2022 third quarter reports of the substantive Council-controlled Organisations and Ports of Auckland Limited, provided as attachments A to F of the agenda report.




5.       Each substantive CCO must provide a quarterly report to the Council-Controlled Organisation Oversight Committee. They are required to:

·     summarise the CCO’s performance against the approved budget and agreed targets in the 10-year Budget and statement of Intent (SOI);

·     provide a forecast of the CCO’s performance;

·     identify the cause of major variances;

·     highlight major achievements for the quarter; and

·     signal any potential or developing issues.

6.       The CCO reports for the third quarter of 2021/2022 are appended in Attachments A to E of the agenda report.

7.       Under the Memorandum of Understanding between POAL and Auckland Council, POAL is to provide a quarterly report to the council as shareholder.  The report for the third quarter of 2021/2022 is Attachment F.

Tātaritanga me ngā tohutohu

Analysis and advice

Auckland Transport

Financial results

8.       The COVID-19 pandemic, especially the emergence of the Omicron variant continued to negatively impact on the operation and financial performance of Auckland Transport for the third quarter of the year.

9.       For the nine-month period, Auckland Transport’s net operating result (including depreciation) is $12 million unfavourable to budget, mainly due to the impact of COVID-19 restrictions on public transport and parking revenues. 

10.     Operating revenue is unfavourable to budget by $92 million primarily driven by lower than expected public transport patronage level for the past three quarters. Public transport patronage was recovering in the second quarter, but has since stalled and declined due to the Omicron outbreak. It is expected that the 50 per cent discount to public transport fares from April will help boost patronage for the rest of the year. Lower parking and enforcement revenue due to lower occupancy and infringement ticket issuances also contributed to the overall unfavourable revenue variance.

11.     Operating expenditure is below budget by $80 million mainly due to lower public transport contract cost, contractor maintenance, unplanned facilities maintenance, Auckland Transport delivered events and training, security and advertising costs.

12.     Auckland Transport is now forecasting the size of operating deficit (excluding depreciation) of around $33 million, $41 million unfavourable to budget, which would be within the $50 million of additional operating funding approved by Auckland Council in December 2021. This improved forecast compared to last quarter reflects further cost savings and potential upside in patronage from half price fares projected for the reminder of the year.

13.     Capital delivery is $422 million for the six months against a budget of $541 million (78 per cent). Programmes and projects across the board are behind planned spend, mainly driven by the impacts of COVID-19 on public consultations, consenting, procurement and tendering processes, and broader supply chain constrains. Auckland Transport is expecting to deliver a full year capital programme of approximately $650 million against the annual budget of $820 million.

Performance measures

14.     Auckland Transport has a total of 28 Statement of Intent performance measures, 14 of which are also 10-year Budget measures. Fourteen of the 28 measures are on track to meet or exceed their targets (or already have), eight are below target, and the remaining six have either not yet been measured or do not yet have a target (to be developed).

15.     Public transport patronage was significantly impacted by the Omicron wave in the first three months of 2022. An increase in patronage is expected in the final quarter of the year as a result of half-price fares and the easing of Omicron impacts (such as services returning to full schedules). 

16.     In an important and positive result, deaths and serious injuries on Auckland’s local road network have increased at a slower rate than allowed for (an increase was expected due to the lower results resulting from initial COVID-19 lockdowns).  Auckland Transport attributes this directly to the reduction of speed limits, as there has been actual decreases in injury and fatality crashes in those areas where limits have changed. This provides important evidence that the programme is working, ahead of decisions on extending its reach to other roads in the region.

17.     Capital delivery continues to be hampered by COVID-19 impacts.  Despite this, the extensive programme of works continues to be delivered, albeit at a slower pace than predicted.  In some areas, such as delivery of new cycleways (including the minor cycling programme), and pedestrian safety improvements, targets are being met or exceeded. 

18.     Auckland Transport has been undertaking activities internally to enable and enhance its culture and capacity.  This is an area of focus in the current Statement of Intent, and also in the recently issued Statement of Expectations.  This section (page 14) covers areas such as Hauora (Auckland Transport’s programme won an award in February), Leadership, active identification of critical roles and mapping ways to attract talent, and working towards improved representation both in general workforce and leadership roles. 


19.     As noted above, safety remains a key focus.  While some improvements are evident, there remains significant work to do, to return to a situation where an overall reduction in deaths and serious injuries (DSI) is felt across all parts of the road network.  The Auckland Transport Safety team is aware of this and working in a number of areas, including advocacy, policy and regulatory changes, and relationships with NZ Police, to improve outcomes. 

20.     Covid continues to present a challenging context for Auckland Transport in many areas, including public transport patronage (and therefore revenue), the capital programme, and impact on costs (both operational and capex). 

Auckland Unlimited

Financial results

21.     Auckland Unlimited had a net direct expenditure of $78.5 million for the nine-month period, which is $9.4 million favourable to budget. This favourable variance is primarily due to changes in the timing of planned expenditure in response to COVID-19 driven revenue impacts and ongoing uncertainties regarding future revenues.

22.     Direct revenue is $0.4 million favourable to budget due to Activate and Reactivate Tāmaki Makaurau grant funding and wage subsidy receipts, offset by a reduction in visitor and event revenues resulting from the COVID-19 restrictions.

23.     Direct expenditure is $9 million favourable to budget due to changes in programme timing as a result of Trans-Tasman border restrictions and resurgence of COVID domestically, delays in implementation of the organisational design/target operating model and further cost controls during lockdown.

24.     Capital spend is $23.8 million for the first nine months, against a year-to-date budget of $41.6 million (57 per cent). The slowdown is due to a range of factors including the COVID restrictions on capital works under alert level 4, operational constraints impacting under alert level 3 as well as ongoing supply chain issues.  In-flight projects will be carried over into the next financial year(s) for completion.

Performance measures

25.     Auckland Unlimited has 11 SOI measures, of which seven are also measures in the 10-year Budget. Nine of the 11 measures are tracked quarterly. One is a six-monthly measure and one is an annual measure. To the end of quarter three, three performance measures are achieved, three are on track against the year-end target, and three are not on track as a result of COVID-19 restrictions. Two have not been measured.




26.     The three measures that are not on track are:

·     The number of people who are issued tickets to attend Auckland Live, Auckland Zoo, Auckland Art Gallery, NZ Maritime Museum and Auckland Stadiums venues and events. The year-end target (1.44m) will not be achieved due the extended Covid-19 restrictions and resulting venue closures over quarters one, two and three.

·     The percentage of operating expenses funded through non-rates revenues. The quarter three result (32 per cent) is below target (44 per cent) due to the closure of all Trust facilities over quarter one and two and capacity limitation over quarter three. This significantly impacted revenue generated by the Trust in all brands. In addition, over quarter two only two months of wage subsidy were available to offset lost revenue.

·     The contribution to regional GDP from major events and business events attracted or supported. As a result of multiple event cancellations and postponements and limitations on attendance at other events, the target ($34m) is now unlikely to be achieved by year end. The quarter three result was $15.05m.

27.     Highlights for quarter three include two Government support packages delivered via Auckland Unlimited:

·        Activate Tāmaki Makaurau: the $60m support package opened on 1 December 2021. Funding registrations closed in March with 12,807 registrations and $32.7m of funding approved to 9,939 businesses by 31 March.

·        Reactivate Tāmaki Makaurau: $25.5m support package for visitor experience vouchers. By the end of March, four waves of vouchers had been distributed and 82,000 vouchers were used to book 320,000 tickets across Auckland experiences.

28.     Other highlights include the commencement in the second half of February of the Summer at the Stadium programme of events at Mt Smart, funded via the Local Activation Programme Fund.  The new Plaza space at the New Zealand Maritime Museum is now complete, signalling the end of the museum entrance refurbishment project resulting in an improved visitor amenity and several new spaces.


29.     Auckland Unlimited have highlighted the ongoing impact of COVID-19 restrictions on events, visitation, hospitality, tourism, accommodation and arts and culture, further impacting Auckland Unlimited revenues, and creating labour and supply chain disruptions.  This risk is easing into quarter four. 

30.     A further risk flagged by Auckland Unlimited is that Auckland’s reputation as a screen friendly city is at risk as it becomes increasingly difficult for location shoots to take place, due to permit regulations now required for sites being listed as mana whenua sites of significance.

Eke Panuku

Financial results

31.     Eke Panuku has been tracking favourably to its operating budget and forecast to be $3 million favourable to budget for the full year.  

32.     Direct revenue continues to be slightly favourable to budget mainly due to increased occupancy at the marinas and higher commercial property rental revenue, which more than offset the COVID-19 rental relief provided to tenants.

33.     Direct expenditure is $5.2 million favourable compared to budget due to slower than anticipated spend around repair and maintenance, consultants, external events and vacancies held.

34.     Capital spend is $25 million against a year-to-date budget of $67.3 million (37 per cent of delivery). The delivery is behind mainly due to impact from COVID-19 and supply chain issues. 

35.     Eke Panuku is currently forecasting a $40 million capital spend for the full year compared to the budget of $91 million. Main underspend areas forecast for the year include Northern Pathway related projects. With impact of COVID-19 restrictions in the first half of the year and Omicron variant on staff, contractors and suppliers, projects were affected by delayed design, consenting and tenants and stakeholder’s decisions in making property available for physical works. Planned site acquisitions were also affected by Public Works Act requirements and third-party agreements.

Performance measures

36.     Eke Panuku has a total of 12 SOI performance measures, three of which are 10-year Budget measures. One of the performance measures does not have a target this year. Of the eleven measures with targets, eight are on track against the year-end target, and three are not on track.  

37.     The three measures that are not on track are:

·     Capital project milestones approved by the board achieved (LTP measure) – five milestones have been met in the year to date, three milestones are at risk and other milestones have completion dates set close to the end of the financial year. The target for this measure is unlikely to be met (target is 80 per cent of capital project milestones completed).

·     Achieve total board approved budgeted Transform and Unlock (T&U) net sales for the financial year through unconditional agreements – the forecast is for net sales to be slightly below target at year end, at $46 million against the $48 million target. Sales in quarter four will also be at risk of market changes.

·     The asset recycling target agreed with the Auckland Council – asset sales are now forecast to be $32 million for the year against a target of $115 million. The target is not forecast to be met, but a number of the land sales or developments are expected to be under contract and concluded next financial year.

38.     Highlights for quarter three include:

·     Thriving Town Centres guidelines were approved by the Eke Panuku Board and endorsed by the Planning Committee. The guidelines outline the regeneration approach, principles and toolbox for Eke Panuku priority locations.

·     Milestones for three location plans: 

Te Ara Tukutuku Plan sets out the next steps for Wynyard Quarter and was endorsed by the Planning Committee

Updated Papatoetoe masterplan was endorsed by the Ōtara-Papatoetoe Local Board 

The draft Harbour Bridge Park concept design was endorsed by the Waitematā Local Board, ahead of wider engagement.

·     An agreement to build Takapuna Central, a $400 million mixed-use development over five sites surrounding Waiwharariki Anzac Square was signed with Willis Bond. Construction of the new Takapuna town square also commenced in January.


39.     Eke Panuku highlight the challenges of continuing to manage the impacts of COVID-19 and other factors in its changing operating environment. These include competitive labour market, changing property market, building material shortages, rising inflation, tighter lending and rising interest rates.

40.     The Human Rights Tribunal hearing between Ngai Tai Waipareira Housing Ltd and Eke Panuku is expected to proceed in May and may attract significant media attention.


Financial results

41.     Watercare’s net direct revenue is $349.4 million, $3.1 million favourable to budget for the first three quarters of the year.

42.     Direct revenue is $64.8 million better than budget mainly due to higher than budgeted infrastructure growth charges ($53 million) associated with new developments.

43.     Direct expenditure is unfavourable to budget by $61.7 million due to COVID-19 contract payments, operational costs associated with the uplift in the Waikato capital programme and digital project spend, and higher employee costs (including increased leave balances, overtime and lower labour recoveries as a result of lower capital delivery). 

44.     Capital delivery is $434.1 million (79 per cent) against a year-to-date budget of $549.4 million. The underspend mainly relates to COVID-19 Alert level 4 restrictions, which saw the closure of most construction sites.

Performance measures

45.     Watercare has a total of 27 SOI measures, of which 14 are also measures in the 10-year Budget (LTP).  Twenty-two of the 27 measures are tracked monthly. Watercare met 11 of its 10-year Budget measures in quarter three. A contributing factor to two targets not being met was the flooding on 21 March which created a work backlog, exacerbated by COVID-19 impacts on the service workforce:

·     Response time for attendance for urgent call-outs (67 minutes year-to-date median compared with a target of less than 60 minutes).

·     Response time for attendance at sewerage overflows (90 minutes year-to-date median compared with a target of less than 60 minutes).

46.     Watercare is revising the timeframe to report on real water loss from the reticulated system and no numbers were reported this quarter.

47.     Of its remaining measures, all were on track.


48.     COVID-19 impacts continue across Watercare activities from disruptions with staffing and supply chain issues. Capital delivery has been affected. A review of the completion timeframe and cost claims associated with COVID-19 are currently being finalised for the Central Interceptor. There was a non-compliant wastewater discharge issue discovered at the Māngere Central Interceptor site in March 2022. The issue was remedied, and council was notified and has been provided with the investigation report.

49.     In January 2022, the Board of Inquiry granted Watercare’s application to draw an additional 150 million litres of water a day from the Waikato River for 20 years. Waikato Tainui filed a notice of intention to appeal with the High Court in February 2022. Ngāti Tahu–Ngāti Whāoa and Te Arawa River Iwi Trust have also filed their intention to join the appeal. While acknowledging the vital role of the Waikato River in Auckland’s water supply, the Water Strategy emphasises the need to increase Auckland’s water security and for Watercare to investigate alternative sources and is an area of interest for the council.

50.     Watercare is working with Healthy Waters and the northern councils on workstream activities supporting the three waters reform, including the development of a framework for a joint asset management plan. Watercare is providing support through secondment of staff to backfill positions with the northern councils and is also participating in various Department of Internal Affairs technical groups. There is a workshop scheduled with the Committee and Watercare board on the 10 June. It may be appropriate to discuss the three waters reforms and ways of working at this meeting.

Ports of Auckland Limited

Financial results

51.     Ports of Auckland Limited (POAL) revenue is tracking slightly ahead of budget with a year-to-date favourable variance of $3 million. This is driven by a strong performance from the break-bulk business and higher demurrage revenue as a result of wider supply chain congestion which offsets reduced volume through the container terminal.

52.     Direct wages are higher than budget due to the impacts of COVID-19 and capacity issues hindering container terminal operation. This overspend is more than offset by underspend in areas such as repairs and maintenance, depreciation costs due to less capital delivery, resulting in an overall favourable year-to-date operating cost to budget.

53.     The underlying net profit after tax is approximately $4 million better than the year-to-date budget. This favourable result is projected to continue with a full-year forecast of $25 million, an increase of 20.2 per cent compared to the result of $20.8 million from the last financial year.

54.     Capital expenditure is $26.7million for the nine-month period, against a budget of $56.6 million (47 per cent of delivery) mainly as a result of restrictions on capital works during the COVID-19 Alert Level 4 lockdown.

Performance measures and other issues

55.     Of the non-financial targets, five are on track and five are not met or not on track.

56.     Those targets not met or not on track are:

·     Percentage reduction in number of lost time injuries – there were 14 lost time injuries in the year to date, compared to 17 in total last year. POAL are continuously improving the management of injuries to offer better rehabilitation processes, getting staff back to work sooner.

·     CHASNZ recommendations implemented - 30 of the 45 recommendations are complete. Seven recommendations are behind target, but should be completed by 30 June 2022. There are three recommendations that will require work beyond 30 June 2022 as these involve the implementation of a new roster allocation system and processes.

·     Crane rate - crane rates are improving and just below target.

·     Ship rate - ship rates are worse than last year and still well below target. Safely improving container terminal productivity remains a top priority for POAL.

·     Percentage of land-side moves on rail – quarter three performance dropped, largely due to KiwiRail cancelling train services. This left POAL just off target.

57.     The key performance targets on track include:

·     Truck turnaround time and truck average turn time – POAL report that road grid performance has been exceptional in challenging circumstances.

·     Number of harbour spills caused by POAL - there were two minor marine spills at the port in quarter three, neither of which were as a result of POAL’s activities.

·     Multi-cargo: average car dwell times (days) – POAL note that the ability to remove cars off the port has been good in challenging circumstances of ship arrivals. 


58.     Congestion in the global supply chain continues.  Auckland’s supply chain was significantly impacted by the Omicron outbreak, but there are signs of increased activity as businesses bring staff back into the work environment. Fatigue and shortages of labour capacity remain the key concern for POAL.

59.     WorkSafe completed the investigation of the fatality at the South Auckland Freight Hub during last year’s tornado and decided no further action is required.

60.     On 19 April, there was a fatal incident on a ship berthed at a multi-cargo wharf. A stevedore employed by Wallace Investments, died at the scene. Investigations are underway by Wallace Investments and Maritime NZ. POAL are fully supporting these investigations.

61.     On 21 April there was an operational issue in the automated area of the container terminal. POAL immediately suspended automated operations, while the issue is investigated. POAL are moving their automated yard back to manual operations. Due to the suspension, POAL are unable to complete the project this financial year as planned.

Tauākī whakaaweawe āhuarangi

Climate impact statement

62.     The quarterly performance reports are a key tool to monitor the progress of each CCO’s action on climate change. The CCO quarterly reports contain commentary on activities relating to climate change.

63.     Auckland Transport is on track to meet its operations and assets greenhouse gas reduction target of halving emissions by 2030.  It continues to support the Council-led Transport Emissions Reduction Plan, and has brought important supporting delivery strategies to Council for endorsement in recent months (Parking Strategy, and Cycling/Micromobility). It is working with Council to develop adaptation plans for specific, high-risk areas identified by Healthy Waters, and to incorporate the physical risk from climate change in policies and processes. 

64.     Auckland Unlimited is leading work on a Climate Innovation Hub. The first Advisory Group meeting and working session for philanthropic involvement were held during March. The website development, communications and marketing plan are all underway. A key focus is on recruiting for the Business Development Manager and Māori Advisor roles.  The Auckland Women4Climate Mentorship programme, led by AUL’s Parin Rafiei-Thompson is also now live. The Programme is organised by C40 cities, running from April to November 2022. This will provide mentorship from an experienced leader, networking access, and regular training with global experts.

65.     Eke Panuku launched a ‘future fit’ programme this quarter as a way to reinforce their sustainability work programme and facilitate action by staff to understand and reduce their carbon footprints. Eke Panuku is also a Toitū carbon reduce certified organisation, committed to measuring and managing its greenhouse gases and publicly reporting on them.  Its emissions are audited and reported on annually by Toitū NZ.

66.     Watercare is developing a Climate Change Action Plan to deliver on the direction and actions that have been established in Te Tāruke-ā Tāwhiri: Auckland's Climate Plan. The first draft of the action plan was completed April 2022 and the plan will be finalised in June 2022. The development of a decarbonisation roadmap to 2030 is also underway and will include level investment scenarios and proposed statement of intent targets.

67.     Auckland Council is currently preparing the proforma Climate Disclosures. POAL contributes to this to disclose current levels of maturity. The final disclosure is due following financial year end. POAL will undertake our scenario-based risk and opportunities assessment for this programme of work in quarter four.

68.     The Auckland Council group is required to report against the climate disclosure reporting standards from 2023/2024 under the Financial Sector (Climate-related Disclosures and Other Matters) Amendment Act 2021. Achieving full compliance will require the council group to make fundamental changes to the organisation to ensure climate risk management is embedded into the governance structures, strategic, and financial planning processes. Work has started on this and the Chief Sustainability Office, Financial Control and Risk team are working together with the CCOs and POAL to progress the group climate disclosure. A governance group, chaired by Peter Gudsell, and a working group that includes representatives from across the council group has also been set up.

Ngā whakaaweawe me ngā tirohanga a te rōpū Kaunihera

Council group impacts and views

69.     Each CCOs quarterly report contains information on how they are contributing to the council’s outcomes and objectives.

Ngā whakaaweawe ā-rohe me ngā tirohanga a te poari ā-rohe

Local impacts and local board views

70.     The governance of substantive CCOs and POAL is a responsibility delegated to the CCO Oversight Committee. We have not sought the views of local boards. CCOs provide six-monthly progress and performance reports to local boards. The quarterly reports also provide a summary of the engagement that CCOs have carried out with local boards during the quarter.

Tauākī whakaaweawe Māori

Māori impact statement

71.     Each CCO reports on their contribution towards achieving Māori Outcomes in their quarterly report.

72.     Auckland Transport’s report outlines the wide range of activities it has undertaken with Māori organisations in the quarter (page 13).  In particular, we note the joint governance hui between the IMSB and Auckland Transport, with one item of discussion being consistency of Māori engagement across all project/strategies and improving Māori impact statements in reports.  This is an issue which has arisen twice in recent debates at Council committees and will be an issue for continued focus for Auckland Transport in the future. 

73.     Auckland Unlimited initiated an organisation-wide cultural competency survey in March, designed to assess attitudes, confidence and capability of its workforce in relation to the public sector’s ‘Te Arahwhiti cultural competency framework’. It will set independent foundational benchmarks to measure the capability development of staff for enabling Te Mahere Aronga, Auckland Unlimited’s organisational Māori Outcomes Plan. An Auckland Unlimited cultural competency app to encourage and support staff to become more confident in and increase their understanding of Māori language and tikanga is in development, with a mid-May launch date.

74.     Eke Panuku have continued engagement with mana whenua partners on projects across the business, including a focus on the review of the draft masterplan for Onehunga wharf. Two properties have been presented to mana whenua as commercial opportunities. Eke Panuku are continuing to progress the implementation of the Mana Whenua Outcomes Framework.

75.     Watercare’s new organisation plan includes Te Ao Māori values embedded throughout our organisation as one of six strategic priorities for 2022 which is aligned to the Kia Ora te Hononga (Effective Māori Participation) and Kia Hāngai te Kaunihera (An Empowered Organisation) mana outcomes. Cadetships placements for Māori have been secured in the Central Interceptor Project and other infrastructure projects, driving outcomes under Kia Ora te Rangatahi (Realising Rangatahi Potential). Planning is underway for hui with key stakeholders in the Waikato River Board of Inquiry including Waikato River iwi and the Waikato River Authority, supporting Kia Ora te Taiao (Kaitiakitanga).

76.     A draft Māori Outcomes Framework has been reviewed by the POAL Board and is being consulted on with external stakeholders. POAL have started developing the Outcomes Plan.

Ngā ritenga ā-pūtea

Financial implications

77.     Each of the CCOs and POAL’s quarterly reports contain information regarding their financial performance. These are described in the sections above. 

Ngā raru tūpono me ngā whakamaurutanga

Risks and mitigations

78.     Each of the CCOs and POAL’s quarterly reports contain information regarding their risks and mitigations, which is summarised above.

Ngā koringa ā-muri

Next steps

79.     This report is primarily for information purposes. The next CCO and POAL quarterly reports (quarter four April to June 2022) will be provided to the CCO Oversight Committee in September 2022.


Ngā tāpirihanga






Auckland Transport Chair covering letter quarter three report 2021/2022



Auckland Transport quarter three report 2021/2022



Auckland Unlimited quarter three report 2021/2022



Eke Panuku quarter three report 2021/2022



Watercare quarter three report 2021/2022



Ports of Auckland Limited quarter three report 2021/2022



Ngā kaihaina



Rachel Wilson - Principal Advisor

Sarah Johnstone-Smith - Principal Advisor

Edward Siddle - Principal Advisor

Chris Levet - Principal Advisor

Claire Gomas - Principal Advisor

Trudi Fava - CCO Programme Lead


Alastair Cameron - Manager - CCO Governance & External Partnerships



Council Controlled Organisation Oversight Committee

24 May 2022


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24 May 2022


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