An independent service delivery review of the Queenstown Lakes District Council?s regulatory contractor unanimously recommended that regulatory matters should be brought back within the council in the form of a council controlled organisation (CCO), QLDC chief executive Duncan Field announced today.

"That recommendation has been accepted by the council and on Friday it took the decision that we will now move to undertake full public consultation on the establishment of a CCO," Mr Field said.

In 2004 the council embarked on the public process of establishing independent working parties to undertake a full service delivery review in response to the expiry of contracts, including CivicCorp in 2008.

"A substantial process has now been gone through over the last two years. Consultation was undertaken widely with the community and stakeholders," Mr Field said.

Over the period of the review the community had made its views known.

"Members of the community are unhappy with the current system, in particular the present need to deal with a privately owned profit making company," Mr Field said.

In June 2006 the council clearly and publicly flagged in the Council Community Plan that options being considered included 'in-house' delivery by council and the establishment of CCO's.

"We now intend to proceed with the proposal for the establishment of a CCO, which is effectively an independent company wholly owned by the community and operated on a 'not for profit' basis," Mr Field said.

A CCO offered several important benefits including:

• Consenting and licensing in this district are such a large issues that they deserve dedicated governance. The CCO will have directors who are very experienced practitioners guided by clear expectations from the council.
• A CCO structure clearly ring-fences the company's activities. Developers can be confident they are paying a fair cost for services and the community will know that developers are paying their way.
• Before it can form the CCO council must publish a proposal on this means of delivering regulatory services and undertake consultation. That process will include inviting submissions and a formal hearing.

Without further steps the CCO would not commence providing services until 1 July 2008.

Council believed there were advantages in commencing the new service arrangement earlier and was therefore entering into discussions with CivicCorp as to whether the CCO could assume the CivicCorp undertaking before expiry of the current contract.

"Any early start will be on the basis that it is fiscally neutral to all parties and stake holders," Mr Field said. This would leave all parties in the same position as if the contract continued to 30 June 2008.

"Whether an early start can be successfully concluded will be for the (to be appointed) directors of the CCO to ultimately approve on the basis that this is the best way to provide for the future," Mr Field said.

As the current contract drew to a close the council was concerned to ensure that there was a seamless transition from the current contract to the CCO for applicants, submitters, staff and the community at large.  "The council is conscious that, without careful management, service levels may diminish significantly as the contract comes to a close," Mr Field said.

The community needed to be aware that an 'early start' would not bring instant changes in service delivery, QLDC Mayor Clive Geddes said.

"There's no magic light bulb but what we will have is control over the process, a commitment to delivering that service to the satisfaction of our community and the ability to leave out the profitability element. This will be a very positive step for the community," Mr Geddes said.

For applicants, the CCO structure would assure very clear information about fees and charges, showing that developments were paying their way, without being overcharged Mr Geddes said.

Regardless of the 'transfer' negotiation progress the council would commence CCO consultation at the end of this month, calling for public submissions towards the beginning of December, with submissions closing in late January 2007.

ENDS

For further information please contact Duncan Field 03 4410499.

By: Sarah