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Council-controlled organisation
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{{Short description|New Zealand companies owned by local councils}} {{Use New Zealand English|date=April 2024}} '''Council-controlled organisations''' ('''CCOs''') and '''council-controlled trading organisations''' in New Zealand are what were formerly known as ''[[local-authority trading enterprise]]s'' (''LATEs''). Introduced under Sections 6 and 7 of the ''[[Local Government Act 2002 (New Zealand)|Local Government Act 2002]]'', they are essentially any company with a majority [[Territorial authorities of New Zealand|council]] 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|Wellington City Council]] uses trusts to hold museums and its zoo, while in 1996 the [[Horowhenua|Horowhenua District Council]] transferred its library functions to the [[Horowhenua Library Trust]].<ref>{{cite web|title=Horowhenua Library Trust - Frequently Asked Questions|url=http://www.library.org.nz/who/hlt/faq.html|accessdate=30 January 2011|archive-url=https://web.archive.org/web/20110724200841/http://www.library.org.nz/who/hlt/faq.html|archive-date=24 July 2011|url-status=dead}}</ref> In the past, the erstwhile for-profit LATEs were seen as the [[local government]] equivalent of [[state-owned enterprises of New Zealand|state-owned enterprises]] (SOEs). Many of these, which included bus companies, diagnostic laboratories, public works divisions and property investment companies, were [[privatization|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.<ref>{{cite web |url=http://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=10633963&pnum=0 |title=Council reveals Super City's hidden tax bill |last1=Orsman |first1=Bernard |date=24 March 2010 |work=The New Zealand Herald |accessdate=24 March 2010}}</ref> 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]] and its subsidiaries *[[New Zealand Local Government Association Incorporated|New Zealand Local Government Association]] and its subsidiaries *[[New Zealand Local Government Insurance Corporation Limited|New Zealand Local Government Insurance Corporation]] *[[Watercare Services]] ([[Auckland]])
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