Council-controlled organisations (CCOs) and council-controlled trading organisations in New Zealand are what were formerly known as '' local-authority trading enterprises'' (''LATEs''). Introduced under Sections 6 and 7 of the '' Local Government Act 2002'', they are essentially any company with a majority

council A council is a group of people who come together to consult, deliberate, or make decisions. A council may function as a legislature, especially at a town, city or county/shire level, but most legislative bodies at the state/provincial or natio ...

shareholding, or a trust or similar organisation with a majority of council-controlled votes or council-appointed trustees, ''unless'' designated otherwise. More than one council may be represented in a council-controlled organisation. They are used for widely varying purposes by councils. For example, the Wellington City Council uses trusts to hold museums and its zoo, while in 1996 the

Horowhenua District Council Horowhenua District is a territorial authority district on the west coast of the North Island of New Zealand, administered by Horowhenua District Council. Located north of Wellington and Kapiti, it stretches from slightly north of the town of ...

transferred its library functions to the Horowhenua Library Trust. In the past, the erstwhile for-profit LATEs were seen as the local government equivalent of

state-owned enterprises A state-owned enterprise (SOE) is a government entity which is established or nationalised by the ''national government'' or ''provincial government'' by an executive order or an act of legislation in order to earn profit for the governmen ...

(SOEs). Many of these, which included bus companies, diagnostic laboratories, public works divisions and property investment companies, were privatised. For-profit council organisations are now termed ''council-controlled trading organisations'' under the Act. Council-controlled organisations pay tax to central government, unlike the internal activities of councils which are tax-free. The ''Local Government Act'' exempts certain organisations from its legislative control and there is a mechanism under Section 7 to manually designate further exceptions. The automatic exceptions include: *electricity companies and electricity trusts *energy companies *port companies and their subsidiaries *

Infrastructure Auckland Infrastructure is the set of facilities and systems that serve a country, city, or other area, and encompasses the services and facilities necessary for its economy, households and firms to function. Infrastructure is composed of public and priv ...

and its subsidiaries * New Zealand Local Government Association and its subsidiaries * New Zealand Local Government Insurance Corporation * Watercare Services ( Auckland)

References

{{reflist

External links

''Local Government Act 2002''
(see Sections 6 and 7) Local government in New Zealand

See also

References

External links