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[Volume:654;Page:55] 
Hon RODNEY HIDE (Minister of Local Government) 
: 
 It is so nice to get to speak. It is nice to be able to debate the issues once again. 
Part 3 is concerned with the transitional arrangements that must be made in order for the Auckland Council to be ready to assume its role in late 2010 which is something that we understand Labour is keen on but is not prepared to support. Accordingly this part commences on the day after this bill receives the Royal assent with the exception of clauses 27 and 28 and Subpart 3 of Part 3 which come into force on the close of 31 October 2010. 
This bill enables the reorganisation process to commence but it does not contain all the legislative provisions that will need to apply to the change on 1 November 2010. Further policy work by officials and investigation and analysis by the Auckland Transition Agency are needed to identify what other provisions will be needed at that time. Additional provisions will therefore be included in a third bill to be introduced around October of this year and enacted by May 2010. 
Part 3 covers a range of matters including establishing the Auckland Transition Agency which is responsible for developing and establishing arrangements to enable the Auckland Council to operate once it is established. Part 3 also sets out the specific functions of the Auckland Transition Agency such as the appointment of an interim chief executive officer of the Auckland Council. Part 3 also sets out the accountability and reporting requirements of the Auckland Transition Agency. However it disestablishes the Auckland Transition Agency once the Auckland Council comes into existence. 
Part 3 requires that in certain situations the existing Auckland local authorities and their subsidiaries must obtain the consent of the Auckland Transition Agency before implementing decisions. That is in order to prevent the councils from making decisions that would compromise the Auckland Council. Part 3 also provides for the expenditure and recovery of costs for the Auckland Transition Agency and it requires that existing local government organisations cooperate with the Auckland Transition Agency in responding to requests for information and for the secondment of staff. 
We also have some amendments. 
Hon Darren Hughes 
: So do we! 
Hon RODNEY HIDE 
: These amendments include clarifications and responses to concerns raised by the councils and by Ports of Auckland Ltd. I say to Mr Darren Hughes that I am conscious that Labour may well have some amendments but our amendments are in response to concerns that the councils have raised. 
The first amendment corrects a cross-reference error in clause 13. Then there are three amendments proposed to clause 31. The first provides that subclause (2) does not apply to Ports of Auckland or its subsidiaries. This responds to concerns from Ports of Auckland that the application of that provision might prejudice its commercial operations. Ports of Auckland will still be subject to high-level oversight by the Auckland Transition Agency and to the oversight of its owners Auckland Regional Holdings and the Auckland Regional Council. 
The second amendment amends subclause (3) of clause 31 to respond to council concerns that the $5000 threshold for the councils is too low. The threshold is raised to $20000 and the requirement that the provision apply only to contracts extending past June 2011 is clarified. 
The third amendment is to subclause (4). It makes similar changes to the threshold for contracts by council-controlled organisations and similar entities. It is acknowledged that these provisions will catch legitimate contracts that are sensible business-as-usual decisions made by the councils and other organisations and accordingly most decisions will be confirmed by the Auckland Transition Agency. However the provisions are necessary to safeguard the future of the Auckland Council. 
I commend Part 3 to the Committee.