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Performance and Appointments Committee
12 December 2023
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ITEM TABLE
OF CONTENTS PAGE
1 Ngā Tamōtanga | Apologies 5
2 Te Whakapuaki i te Whai Pānga | Declaration of Interest 5
3 Te Whakaū i ngā Āmiki | Confirmation of Minutes 5
4 Ngā Petihana | Petitions 5
5 Ngā Kōrero a te Marea | Public Input 5
6 Ngā Kōrero a te Poari ā-Rohe
Pātata | Local
Board Input 5
7 Ngā Pakihi Autaia | Extraordinary Business 5
8 Summary of
Confidential Decisions and related information released into Open 7
9 Summary of
Performance and Appointments Committee information memoranda, workshops and
briefings (including the Forward Work Programme) - 12 December 2023 9
10 Review of the Appointment
and Remuneration Policy for Board Members of Council Organisations 11
11 Te Whakaaro ki ngā Take Pūtea e
Autaia ana | Consideration
of Extraordinary Items
PUBLIC EXCLUDED
12 Te Mōtini ā-Tukanga hei Kaupare i
te Marea | Procedural Motion
to Exclude the Public 17
C1 CONFIDENTIAL: Appointment of the
Auckland Transport Chair 17
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Performance and Appointments Committee
12 December 2023
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Summary of Performance and Appointments
Committee information memoranda, workshops and briefings (including the Forward
Work Programme) - 12 December 2023
File No.: CP2023/19056
Te take mō te
pūrongo
Purpose of the report
1. Note the
progress on the Forward Work Programme appended as Attachment A
2. Receive
a summary and provide a public record of memoranda or briefing papers that may
have been distributed to the Performance and Appointments Committee.
Whakarāpopototanga matua
Executive summary
3. This is
a regular information-only report which aims to provide greater visibility and
openness and transparency of information circulated to Transport and
Infrastructure Committee members via memoranda/briefings or other means, where
no decisions are required.
4. The
following information items were distributed:
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Date
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Subject
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30/11/2023
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Memorandum: CONFIDENTIAL:
Resignation of Susan Huria from the Eke Panuku Development Auckland Board (no
attachments)
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5. Note
that, unlike an agenda report, staff will not be present to answer
questions about the items referred to in this summary. Transport
and Infrastructure Committee. members should direct any
questions to the authors.
Ngā tūtohunga
Recommendation/s
That the Performance and
Appointments Committee:
a) tuhi
ā-taipitopito / note the progress on the forward work programme appended
as Attachment A of the agenda report
b) whiwhi /
receive the Summary of Performance and Appointments Committee information
memoranda and briefings.
Ngā tāpirihanga
Attachments
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No.
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Title
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Page
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a⇨
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Forward Work Programme
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Ngā kaihaina
Signatories
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Author
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Sam Riddiford - Governance Advisor
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Authoriser
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Anna Bray - Acting Director - Governance and CCO
Partnerships
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Performance and Appointments Committee
12 December 2023
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Review of the Appointment and
Remuneration Policy for Board Members of Council Organisations
File No.: CP2023/18588
Te take mō te
pūrongo
Purpose of the report
1. To set
the scope of a review of the Appointments and Remuneration Policy for Board
Members of Council Organisations (the Policy).
Whakarāpopototanga matua
Executive summary
2. A review
of the Policy is recommended to address known or potential issues and to ensure
that the Policy remains effective in guiding the Council’s appointment
process and achieving the outcomes sought.
3. The
proposed scope of this review is to focus on areas that may not reflect best
practice or the desired direction of the council.
4. The
areas identified for further work are:
· purpose
of policy
· selection
panel composition
· eligibility
criteria for candidates
· amendments
for clarity and improved formatting.
Ngā tūtohunga
Recommendation/s
That the Performance and
Appointments Committee:
a) whakaae /
agree to a review of the Appointment and Remuneration Policy for Board Members
of Council Organisations focussed on the following areas:
i) purpose
of policy
ii) selection
panel composition
iii) eligibility
criteria for candidates
iv) amendments
for clarity and improved formatting, and
v) any
other matters identified by the committee.
Horopaki
Context
5. Auckland
Council is required by section 57(1) of the Local Government Act 2002 (LGA) to
have a policy that sets out an objective and transparent process for the:
· identification
and consideration of the skills, knowledge and experience required of directors
of a council organisation
· appointment
of directors to a council organisation
· remuneration
of directors of a council organisation.
6. Council’s
policy for the purpose of section 57(1) is the Appointment and Remuneration Policy for Board Members of Council
Organisations (the Policy).
7. This
policy discusses the process and settings for appointing board members to:
· substantive
council-controlled organisations (CCOs)
· Port
of Auckland Limited
· non-substantive
CCOs
· council
organisations (COs)
8. The
Policy guides appointments to other entities where appointment decisions are
made jointly with other shareholders or entities created by legislation. These
include City Rail Link Limited, Tāmaki Redevelopment Company, the Auckland
Regional Amenities Funding Board and Auckland War Memorial Museum.
9. The
Policy does not override any provisions in legislation or in the constitutional
documents of each entity.
10. A review of the
Policy was completed in 2017 [APP/2017/65]. The Policy has been further
amended since then as follows:
· inclusion
of a section regarding Port of Auckland [APP/2018/50]
· update
to the core competencies [APR/2020/10]
· update
to the core competencies, allowing the committee to delegate approval of
short-lists and update to the Port of Auckland section to bring it into line
with the process for Substantive CCOs [PACCC/2023/4].
Tātaritanga me ngā
tohutohu
Analysis and advice
11. Periodic reviews of
policies ensure that they remain fit for purpose and facilitate good processes
and decision making. The Policy has not been subject of a full review for six
years.
12. The Policy has
broadly operated well and has supported a process that meets the statutory
requirements. Because the Policy is generally fit for purpose, staff recommend
that the review of the Policy focusses on specific topics that are related to
known or potential issues rather than a review that considers the Policy in its
entirety.
13. The review will
follow a simplified process which includes the establishment of scope, a
staff-led review including consultation with the committee and recommendations
to the committee for approval in the new year.
14. The specific issues
identified by staff are noted in Table 1 below. The committee may direct staff
to consider other matters relating to the Policy:
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Issue
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Description of issue
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Review opportunity
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Purpose of policy
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Most of the Policy’s
purpose is aligned with the statutory requirements under s57(1) of the LGA.
It also includes that appointments should ensure “continuity through
smooth succession of board members and board chairs”.
Continuity and managed
transitions have not always been possible with several boards experiencing
significant change over the past three years, especially Eke Panuku, Port of
Auckland and Auckland Transport.
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The review would consider
whether this element of the purpose section is appropriate and sets the
correct aim for the Policy.
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Selection panel
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The membership of the
selection panel can contain up to six members for some appointments. This
number of panel members creates some practical issues with scheduling.
The Policy establishes an
enduring pool of councillors who may serve on selection panels and
maintaining this pool requires administrative decision making by the
committee.
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The review would consider
whether the membership of the selection panels are the optimal size and
represent a mix of perspectives that supports good decision making.
The review would also
consider whether the enduring pool is a useful mechanism and whether this
could be achieved more efficiently.
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Eligibility criteria
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The Policy includes
several settings with regards to the eligibility of candidates for appointment,
some of which have been identified as potential issues.
The Policy includes that
directors may serve on a board for a maximum of nine years.
A PwC report into the
management of conflicts of interest at Eke Panuku has recommended that the
Policy with regards to board member conflicts of interest be reviewed. This
report is available here: PwC
Eke Panuku conflicts of interest controls assessment.
The Policy includes rules
for directors who choose to stand for elected office including that they must
stand down from the board from nomination day which is approximately one month
from election day for the general election.
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The review would consider
the optimal policy settings regarding:
· Director
tenure
· Conflicts
of interest
· Directors
standing for elected office.
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Amendments for clarity
and improved formatting
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Elements of the Policy can
be improved without changing the meaning of the Policy. An example is the
Port of Auckland section now mirrors the Substantive CCO and can be
integrated to simplify the document.
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Tauākī whakaaweawe
āhuarangi
Climate impact statement
15. Each CCO is
accountable for ensuring their planning and decisions reflect the action areas
outlined in Te-Tāruke-ā-Tāwhiri.
16. Candidates seeking
appointment need to demonstrate a commitment to integrate the action areas
outlined in Te Tāruke-ā-Tāwhiri into the CCO’s activities.
Additional climate skillsets may be sought when considering specific vacancies
to support a board to deliver on our climate objectives.
Ngā whakaaweawe me
ngā tirohanga a te rōpū Kaunihera
Council group impacts and views
17. This report seeks
agreement for the parameters of the review. While CCOs are impacted by this
policy, it is the responsibility of the council to set the policy direction for
appointments.
Ngā whakaaweawe
ā-rohe me ngā tirohanga a te poari ā-rohe
Local impacts and local board views
18. Local boards are
delegated powers to make appointments to CCOs and COs that operate within a
local board area while entities with a regional or sub-regional impact are
retained by the Governing Body.
Tauākī whakaaweawe
Māori
Māori impact statement
19. Kia
ora Tāmaki Makaurau sets as a mahi objective that: "Mana whenua and
Māori are active partners and participants at all levels of the council
group's decision making".
20. An
Independent Māori Statutory Board member is involved in the appointment
process by being a member of the selection panel. This ensures that a
Māori perspective informs the recommendations of the selection panel
during the shortlisting, interviewing and appointment processes.
Ngā ritenga
ā-pūtea
Financial implications
21. The review of the
Policy does not cause any new spending.
Ngā raru tūpono me
ngā whakamaurutanga
Risks and mitigations
22. The Policy
mitigates risks associated with appointments by setting out a transparent and
thorough process for selecting board members. The review seeks to improve the
Policy by ensuring that it is supports an effective appointments process.
Ngā koringa ā-muri
Next steps
23. Staff will develop
further options and advice regarding the elements of the policy identified for
this review and report back to this committee.
Ngā tāpirihanga
Attachments
There are no attachments for
this report.
Ngā kaihaina
Signatories
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Author
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James Stephens - Senior Advisor
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Authorisers
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Alastair Cameron - Manager - CCO Governance &
External Partnerships
Anna Bray - Acting Director - Governance and CCO Partnerships
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