Local Govt | National News Video | Parliament Headlines | Politics Headlines | Search


LATE Model Needs Review


Tuesday, 18 January 2000


Mayor of Auckland City, Chris Fletcher supports a call for a review of the Local Authority Trading Enterprise (LATE) model to give shareholding Councils greater ability to influence the operation of Council owned companies.

Mrs Fletcher says that because 100% ownership is in the hands of elected representatives that Councils have ultimate responsibility, and LATE's need to reflect broader Council objectives.

"While Councils elect the board of governors there are inevitable competitive tensions as the basis of the relationship is defined in the Local Government Act as being 'commercial'," she said.

Chris Fletcher says, LATE's are required to operate as successful businesses, which can be incongruent with the responsibilities of Councils to exercise leadership and be accountable on a range of other governance issues. Councils as 100% owners are not elected to simply consider matters from a purely commercial perspective.

"The principal of providing substantial independence from the local authority as shareholder to operate commercially as prescribed in the Local Government Act needs to be reviewed.

Councils are restricted in their influence of activities to the Statement of Corporate Intent. LATE's can then use their ability to operate independently without consideration of Councils wider objectives."

Mrs Fletcher said, "Legal opinion even suggests that LATE's are only obliged to consider comments from the shareholder on its Statement of Corporate Intent, with the over-riding objectives remaining commercial."

"Regardless of any other shareholders objectives, LATE's primary objective is to be a successful business. Objectives such as environment and consumer issues, business relationships and being a good civic organisation must be given due balance in their operation and could be influenced through the Statement of Corporate Intent process,"

"There must be a change to ensure profit maximisation and returns of shareholders equity are not the only motives," says Chris Fletcher.


© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines

The Gili Islands: A Community Earthquake Recovery Effort

Joseph Cederwall travelled to the Gili Islands in October 2018 to talk to locals about their experiences of the event and witness the impact and the rebuild efforts on this unique ecotourism destination.

2018 was a difficult year for the Indonesian archipelago. This chain of fragile and largely low-lying islands is situated on a particularly unstable segment of the Pacific rim of fire. Last year the islands were hit by a series of devastating natural events including a series of Lombok, Sulawesi and Java based earthquakes and resultant tsunamis.More>>


DHBs "Prepared": Junior Doctors Strike Tuesday, Wednesday

The needs of acute patients will be met during tomorrow's junior doctor strike, a DHB spokesperson says... Almost 3000 junior doctors are expected to walk off the job, which will affect all DHBs apart from West Coast District Health Board. More>>


Gordon Campbell: On MBIE’s Social Media Scam

Given the ambit of MBIE’s work, almost any form of social activity could qualify as being part of MBIE’s brief, so the privacy threats posed by this training programme are extensive. The current oversight safeguards seem threadbare to non-existent. More>>


JusTrade: New Campaign For A 21th Century Trade Agenda

‘Critique is no longer enough. If anything is to really change, we need to step away from the existing framework and take a first-principles approach to rethinking what will work for the 21st century.’ More>>


Gordon Campbell: Thompson + Clark Are The Tip Of The Iceberg

How can we tell where and how any lines are being drawn? Oversight is not exactly robust. If it were, Thompson + Clark would have been out of contention for state security work ten years ago. More>>

Trainers: Taratahi Institute of Agriculture In Interim Liquidation

Taratahi employ 250 staff and this year has provided education to over 2500 students. Taratahi owns and manages 8 farms throughout the country. More>>


IPCA Report: Complaints About Deputy Commissioner Wallace Haumaha

The Authority has found that DC Haumaha acted improperly by approaching staff and others to provide information to support him to refute the allegations about his 2016 conduct, or solicited other staff to do so on his behalf... More>>





InfoPages News Channels