The New Zealand Herald reported today that Super City mayoral contenders John Banks and Len Brown and other Auckland leaders were concerned about plans to set up seven CCOs to be responsible for the majority of city services.
The newspaper said Aucklanders would be locked out of decisions affecting transport issues, including road congestion, and management of the waterfront.
However Mr Key told Newstalk ZB that there were 40 CCOs in operation across the Auckland region already.
"A council-controlled organisation recognises that there is a commercial element as a general rule to what is actually taking place and there's the need for directors that do have independence from the politicians if you like. That's not a new structure," he said.
"In a practical sense the council actually sets the direction for how that CCO will operate, it actually appoints those directors and it has the right to remove the chairman and directors like we do with the Crown entities."
The New Zealand Herald reported concerns that unelected directors would make key decisions about development of the waterfront and would not be accountable to the public.
