More than 1200 jobs will be shaved as a result of the formation of the Auckland supercity by November 1 but a further 300 transitional staff will go by July 2012.

In a statement this morning, the Auckland Transition Agency said the number of fulltime equivalent staff by July 1, 2012 would be 7907, down from 9430 jobs across the five local authorities today.

The reduction in jobs reduces the total salary bill $66.5 million a year to $537.5 million.

UPDATED The council controlled organisations (CCOs) that will help run Auckland’s supercity have been made slightly more accountable under new rules announced by Local Government Minister Rodney Hide today.

The reporting back of the Local Government (Auckland Law Reform) Bill by the Auckland governance legislation committee has seen Auckland Council’s control over its substantive CCPs strengthened.

This changes include:

* The Auckland Council will now appoint the chair and deputy of each CCO

The owner of the Ports of Auckland has upped its interim payout to the Auckland Regional Council by 15.9% after returning to profitability in the last six months of 2009.

Auckland Regional Holdings (ARH) – the commercial arm of the regional council with a $1 billion portfolio of assets – revealed today that it  paid out $74.3 million to the council in the six months ended December, up from $64.1 million in the last half of 2008.

It also recorded a net profit for the half year of $31.7 million, well ahead of the budgeted $13.2 million.

Well-known businessman Doug McKay has been appointed interim chief executive of the new Auckland Council. 

Mr McKay, 54, has an extensive background in leading large organisations in both New Zealand and Australia. This includes senior roles with Carter Holt Harvey, Lion Nathan and Goodman Fielder.

Most recently he served as chief executive at Sealord and chief executive and executive chairman of Independent Liquor.

He will take up the role on August 1, 2010 for a fixed term to 29 June, 2012.

Local Government Minister Rodney Hide is being accused of misleading Aucklanders as the row over plans for the new super city council heats up in Parliament.

Labour and the Greens have zeroed in on proposals to create seven council-controlled organisations (CCOs) to manage most of Auckland's services.

Legislation to set them up is in a bill which Parliament is dealing with, and opposition parties say they will try to amend it.