The Queenstown Lakes District Council has welcomed participation in a project undertaken by the Office of the Auditor General to seek learning’s from existing Council Controlled Organisation models.

Representatives of the Auditor General are in Queenstown today to initiate the information gathering project that will include other Councils with Council Controlled Organisations.

“The governance and accountability arrangements between Council’s and CCO’s are of on-going interest to the Auditor General and it’s timely to look at learning’s as CCO governance arrangements evolve around the country,’ Assistant Auditor-General Local Government Bruce Robertson said.

The OAG had opted to start the “ground up” project with a case study around the Queenstown Airport sale of shares because of the level of public interest and the lessons that could be drawn from the example.

“This is not an enquiry or an attempt to re-litigate events. We are looking to draw out principles and lessons that are relevant to the local government sector as a whole around governance and the management of subsidiaries,” Mr Robertson said.

The Council welcomed the chance to participate in the project, QLDC Mayor Vanessa van Uden said.

“The share sale was not only a high profile case; it also amounted to a significant investment in Council time and money. This project is a means of ensuring that ratepayers both locally and nationally can receive some value from our experience,” Mayor van Uden said.

The Council looked forward to the learning’s.  “I am sure our experience can benefit the rest of the country,” she said.

Representatives from the OAG had met with Council, the Queenstown Airport Corporation and other stakeholders to reflect on the share sale.

“From Council’s perspective we have always been open to the prospect of reviewing the challenges around what was a commercial decision on the part of a community-owned subsidiary,” QLDC chief executive Debra Lawson said. From the sector’s perspective, she said, the opportunity to place a window on Queenstown’s experience could only benefit other organisations.

The OAG was further considering its options around other case studies.

“It’s possible we will look at three or four other Councils that can contribute. We had previously indicated an interest in looking at the issues around the Queenstown Airport case and so it seemed a perfect starting point. We have received broad co-operation from both the Council and the Airport Corporation, which has been great,” Mr Robertson said.

The OAG hoped to share project lessons from conversations with Councils and CCOs with the local government sector by June 2012.

ENDS
For further information please contact Bruce Robertson 021 222 8451 or Debra Lawson 03 441 0499.

 

By: Jo Blick